Partner Article

Mobile Chip & PIN; the changing face of payment

Cash payments are waning; that is the reality of a world where the Payment Council predicts that card payments are set to fully overtake cash within the next 10 years. This clearly underlines that there is now a definite consumer expectation to pay by card. This is driven primarily by the increasing use of e-commerce as well as a growing amount of innovations in the payment landscape. However, on and offline businesses alike simply cannot ignore this move towards card payment.

For many SMEs, ensuring prompt payment is a critical business issue. However, traditional card machines often prove to be too expensive and can have complex sign up processes with a lack of flexibility. This makes them inaccessible for smaller operations; for example start-up businesses or smaller, entrepreneurial companies.

However, with the increasing digitalisation of the payment landscape, opportunities are arising which remove these barriers. The rise of mobile, high speed data connectivity, and the development of powerful Smartphones and tablets have brought on substantial changes in the payment world. Mobile point of sale (mPOS), sometimes referred to as mobile card payments is a rapidly growing alternative which represents a contrast to traditional card payment options but remains secure and flexible. Indeed, mobile payments are expected to increase with the introduction of new technology.

Chief among these developments has been Mobile Chip and PIN devices that work through a small card reader which connects, via Bluetooth, to an App on Apple or Android Smartphones or tablets. They look like traditional card terminals but are much smaller and are just as easy to use whilst remaining secure with a fast registration process, no fixed costs and being fully mobile.

For the business owner, mobile payment can also expand the business’s horizons beyond card payments; for example some solutions are already offering personalised loyalty functions. This means there is the potential for mobile payment technology to become a complete merchant solution, addressing the owner’s needs across many functions including marketing, accounting and customer engagement programmes. Additionally, Chip & PIN is available for everybody, from the independent market stall trader to the global brand looking for consumer insights.

The positive effects of Chip & PIN are already evident with many businesses reporting increased revenues. Increasingly, some companies have reported that their takings have almost doubled after implementing card payments enabled by mobile payment technology. It’s also been cited that using mobile payment solutions can free up more time as businesses are no longer chasing customers for payment and waiting in banks to pay in cash takings. For example, an average tradesman can lose ten hours chasing invoices or visiting banks. With this time claimed back there is more time to be spent actually working and generating income.

For a long time the world of payments has been stagnant and lacking in innovation. However, it is now beginning to develop. Mobile payment solutions are increasingly able to adapt to different businesses’ needs whilst guaranteeing a level of security that puts customers’ minds at ease. The increasingly competitive market has forced small businesses to exploit technological advancements in order to increase their revenues, remain adaptable to changing business landscapes, and meet consumer demands.

Ian Marsh, UK MD, payleven

This was posted in Bdaily's Members' News section by Editorial team .