Customer use of mobile wallets like Android Pay and Apple Pay are on the rise – and merchants who don’t accept these emerging payment types risk losing business. Forrester predicts that U.S. consumers will spend $142 billion via mobile payments by 2019. Learn how to stay on the forefront of these payment trends to make sure your business is well positioned to capture your share of digital wallet payments.

Mobile payment basics

The idea of accepting a whole new payment type at your business – especially if you have lots of locations – may seem like a daunting task. However, the benefits of accepting mobile wallet payments certainly outweigh the effort. Some of the benefits include:

  • Keeping your current customers happy and loyal. More and more shoppers expect the ability to pay using a mobile wallet wherever their shopping takes them. Offering this payment option will keep your current customers happy so they won’t take their business to a competitor who offers this secure, convenient payment option.
  • Attracting new customers who prefer to pay with a mobile wallet. Gone are the days when shoppers had to remember to bring cash, checks or even a payment card with them on shopping trips. With mobile payments, shoppers simply tap their smartphone on the payment reader, enter a secure PIN or authenticate via biometrics, which then authorizes the payment.
  • Keeping your payment systems secure. Contrary to what you might think, mobile payments are just as secure as card payments. This is due in part to the fact that the customer is required to enter a PIN (or use a fingerprint as biometric identification) before the digital card is authorized. Several mobile wallets also include tokenization elements.

Get started with mobile payment processing

If you think mobile payments may be right for your business, here are five simple steps to get started:

1. Select an experienced, capable payment processor. If you’ve identified mobile payments as a way to help grow your business, make sure you select a payment processor who offers this payment acceptance option. It’s important to know that some processors offer solutions that are only compatible with certain mobile wallets. Have a clear understanding of the processor’s capabilities and the device solutions they offer before you lock into a service agreement. Sign with a processor that doesn’t accept one of the major digital wallets, for example, and risk losing out on customers and business. Going with a payment processor that is well versed in a variety of payment types will help smooth your company’s transition to accepting mobile payments, as well as ensure that those transactions integrate seamlessly with the rest of your business.

2. Purchase NFC-enabled equipment. To accept mobile payments, for the most part, you’ll need equipment that reads NFC (near-field communication) technology. This is the contactless technology that allows a customer to “tap” his or her smartphone on your payment device while the payment data is exchanged between his device and yours. If you haven’t yet upgraded your systems to EMV technology, consider purchasing equipment that is also NFC ready so you can accept mobile wallet payments, such as Apple Pay, Android Pay or Samsung Pay.

3. Set up a gift card program that can go digital. Gift card and other stored value cards are another way that you can integrate mobile payments into your business. More and more, shoppers expect and want the ability to convert plastic gift cards into digital gift cards so they can store gift balances on their smartphones simply. Gift Card Granny estimates that digital gift card sales will reach $160 billion by the year 2018. Make sure your company is ready to take advantage of this tremendous revenue potential by having a solid gift card program in place that offers a digital gift card option.

4. Take your business on the road. Mobile payments aren’t just about accepting payments from customers’ smartphones. The flipside of mobile payments is the merchant who is set up to accept card payments on a mobile device, such as an iPad or iPhone. To do so, you simply install a payments app, insert the card reader (think “dongle”) into the device’s headphone jack and you’re ready to go. Many mobile card readers also accept mobile wallet payments, so you’ll have additional flexibility when it comes to payment types when you’re away from your POS terminal. Taking payments on a mobile device can also be handy for your associates out on your showroom floor, delivering on-the-spot customer service and checking out customers while they wait. This can help to improve your customer experience and reduce queues in your store.

5. Spread the word about mobile payments. Once your payment processor has helped your company get set up with mobile payments, you should market your new payment offering to your customers. Here are some ways to spread the word that you now accept this exciting payment method:

  • Email blast to your customer distribution list
  • Social media post
  • Signage in your brick-and-mortar store
  • Post on your blog about the benefits

As you can see, there are many benefits of adopting mobile payment technology. You’ll have the potential to grow your business by attracting new customers, keeping your current clientele happy and being able to take payments in new locales outside of your four walls. Speak with your merchant services provider today about how to get started with mobile payments.