Analysts report that credit card processing and their customers will increase nearly 600 % between now and 2014, netting nearly 490 million customers. For businesses not accepting credit and debit a card payment; that’s a large chunk of revenue missing from the books.
In 2011 alone, mobile payments topped $5 billion, and that’s just in the U.S. Those numbers were up 89% from 2010.
Unlike traditional card payments, mobile credit card processing is absolutely free, other than the cost of the hardware and setup. Neither the customer nor the business owner is charged for any processing or payments.
Mobile payments are increasing in popularity, especially with the younger crowd as smart phones and mobile social media is expanding. Businesses not offering credit card processing because of the fees associated with the risk are turning away potential business and revenue – and approximately 26 million business are included in that mix.
Setting up mobile devices to allow credit card processing is relatively simple, too. Most of the hardware is plugged into the audio jack of a smart phone or other device, such as a tablet. After downloading, and/or installing the software, the device is almost ready to go. Minor training of and tweaking to the program might be needed.
Most mobile credit card processing takes place through a small sensor that extends from the audio jack. A card is swiped under the sensor or vice versa. Signatures and agreements are completed either through signing on the screen through a finger swiping, or are agreed to through voice. Once processed, the information is stored for records and the funds are usually transferred to the account the following day.
One of the largest advantages of mobile payments is that it allows businesses to accept payments from cards anywhere. This means at display booths, on the road, or even at individual homes. These uses extend from pizza delivery, to fundraising – such as boy scouts and girl scouts, even to individual contractors. Repair service providers could fix plumbing, heating, or anything else and have the payment before leaving.
Mobile credit card processing benefits can also increase business, and not just for people who have cards and aren’t carrying any cash. When fundraising, people will often buy more of a product or item when they have a card than they would with cash. So, not only are businesses and fundraisers gaining extra clients or support, but they’re receiving more from those individuals than they would otherwise.
One company that offers this style of credit card processing is Switch Commerce. In the commerce industry for almost over a decade, Switch has been providing businesses with the software and technology they’ve needed. Recently, those services have expanded beyond ATMs, terminals, and traditional credit card processing into the services of mobile processing.
The set up is easy for businesses wanting to branch into the field. Simple links, easy-to-access contact information, and quotes are available immediately through the company’s website. Like traditional services, Switch offers strong security and customer service. Professionals in the field can help interested clients determine which setups, payments plans, and products fit their needs.
Even just a switch from traditional payment processing to mobile payments could save companies money. As mentioned earlier, many of the mobile plans don’t cost businesses for the purchases. Although some plans have monthly or yearly fees and costs, the actual payment transactions are free. Simply upgrading to mobile credit card processing can save an individual or small business money, or allow them to earn extra revenue without increasing the number of customers each month.
Of course, with the mobile commerce market expected to increase 600% in the next two years, waiting to catch up on the game could be costly to businesses, especially when others are already ahead in the game.