Member Article

The time is now for mobile payments

The time is now for payments on the go

Once again, Barcelona’s Mobile World Congress 2015 (MWC) gathered thousands of the world’s leading brands in mobile to showcase the future of the industry.

One of the big trends to emerge from this year’s event was a host of providers debuting new ways for consumers to make payments – and for small businesses to receive those payments – using mobile devices.

The clear difference at recent MWC events is that there is now an overwhelming sense that taking payments using mobiles is no longer a mere twinkle in the eye of a handful of start-ups, but something that has the backing of the big players – Barclaycard included – and will be a growing force during 2015.

That should be music to the ears of Britain’s small businesses because using a card reader attached to a smartphone handset to receive payments from customers delivers a cost-effective way to start accepting cards. That, in turn, will deliver real bottom line benefits.

Barclaycard’s own research found that a quarter of businesses said that not taking card payments had impacted their sales. What’s more, businesses unable to accept card payments lost out on approximately £7 billion in sales every year. With 75 per cent of all retail transactions now carried out using credit or debit cards, it’s clear consumers are moving away from cash.

In order to keep up with their customers, it’s clear SMEs need to cater to this shift in expectations – and they need to do it now more than ever.

The importance of mobile payments

Small and medium-sized businesses have traditionally relied on formal invoicing or taking cash – methods that require additional time-spent and place further financial constraints on a company.

Handling cash requires customers to have the appropriate amount to hand and forces businesses to waste valuable time and manpower handling it.

As small businesses know well, the time involved in getting the money owed through invoicing can be an even greater burden. Research has shown that businesses are owed an average of £38,186 each (according to Bacs research at the end of 2014) in outstanding invoice payments; this is without considering the additional costs that come with the administration needed to chase outstanding funds.

Being able to take payments at the point of sale removes those issues.

By using one of the many mobile payments (mPos) methods available, businesses can take on-the-spot payments, which are processed electronically and securely through a portable device. It’s also of greater convenience to customers (whether another business or a consumer) because these payments eliminate the need to carry cash.

The Barclaycard Anywhere device, for instance, is specifically designed with merchants in mind. SMEs simply connect our card-reader to their smartphone or tablet, download the Barclaycard Anywhere App (available on IOS and Android) and they are ready to take card payments quickly and easily - making it ideal for start-ups, trades people, small or mobile premises or seasonal traders.

Finding the right solution

Faced with more ways to accept payments, understanding and selecting the most suitable solution while keeping up with innovation and developments can be a minefield for SMEs. Businesses are faced with an ever growing number of choices – as was demonstrated by the raft of announcements from new entrants at MWC.

As competition increases, providers are investigating ways of ensuring a greater level of service through their payments solutions, such as automating both receipts and invoicing, and making other aspects of record-keeping simpler. The Barclaycard Anywhere App provides merchants with real-time access to vital sales information, such as payment trends and performance data – meaning business-owners can easily obtain the latest information at any time or place, helping them manage their business on the move.

The announcements made at MWC demonstrate that the evolution of the payments industry is set to continue and that there has never been a better time for small businesses to think about going mobile when it comes to payments.

But technology announcements aside, the demand from consumers and businesses to be able to dispense with cash or invoice-based payments should be enough to make any small business believe that it’s high time they embraced a mobile-based future – driving greater sales, cutting administration and creating a greater level of satisfaction amongst customers.

* Research conducted by Opinium on behalf of Barclaycard, 2014

http://www.barclaycard.com/news/barclaycard-anywhere-research.html

This was posted in Bdaily's Members' News section by Philip McHugh .