Why Online Businesses Should Be Accepting Mobile Payments
The world of online shopping and gaming is changing, and more people are switching out desktop computers for mobile phones. Some of the world’s biggest websites now have slick mobile versions and prioritize the mobile experience. This is hardly surprising considering that the majority of us now browse, chat and make purchases through our mobile devices.
Despite improvements in technology and the prioritisation of mobile users, there are some online businesses that don’t accept mobile payments. The retailers that do accept such payment methods are growing faster than the competition that doesn’t - heck, there are even pay by phone casinos these days.
So why do the others need to follow suit? What are the benefits of accepting mobile payments? We’ve outlined a few of the reasons below. We’ve also explained which payment platforms should be the priority, and what it will cost to implement them. Keep reading to find out everything you need to know.
Attracting More Customers
Flexibility on how to pay will only ever be a good thing. Perhaps the user doesn’t have their bank card with them, or can’t remember their PayPal password. Would you want that to stop them from making a purchase? If the answer is no, you need to add mobile payment options. Anything from Apple Pay to Android Pay or mobile billing services like Boku can significantly increase your sales.
Keeping Up With the Competition
Business is ever-changing, and you don’t want to fall behind on industry trends or what your competitors are up to. With more online businesses implementing mobile payments, you need to ensure that you keep up. Otherwise, potential customers may leave your site and go to one that does allow them to pay on their phone.
Which Mobile Payments Are Most Important to Have?
Android and IOS own 99% of the mobile OS market. This means that almost everybody uses an IOS or Android device. This means that both Apple Pay and Android Pay are equally as important, and it shouldn’t be a case of choosing between them. If you can only implement a few payment platforms, make it these.
Other options, particularly popularly in the casino world, are Boku and Payforit. Instead of coming straight from a bank balance, these platforms can deduct funds from users Pay As You Go Balance, or apply it to their monthly phone bills.
Are There Fees Involved With These Payment Methods?
Yes, similarly to when you accept card payments, you will be subject to transaction fees. These mobile payment methods work the same way; the payment facilitator will take a small cut. That said, the cost is usually nominal, and the increase in sales makes it worth it. You may lose a small percentage in transaction fees, but you could gain tenfold the number of sales.
The specifics of the fee structure will vary by the payment provider, but you should anticipate anywhere between 0.05% to 2%. You should consider these fees when calculating margins and the cost of sales, and update your pricing accordingly.