6 ways mobile payments can boost your cash flow
You can’t ignore the data. More and more people are using their smart phones, tablets and other devices to complete financial transactions. Because of this, small business owners who are able to receive mobile payments may be at an advantage over their competitors in terms of sales volume and available revenue.
Whether you run a service-based business like an in-home day care or sell fresh flowers from a mobile truck, mobile payment technology can boost cash flow in the following ways:
- Mobile payments make impulse buying easy for consumers, increasing sales.
- Mobile payments allow you to collect money on the spot — no more billing, invoicing and tracking past due accounts for service-based companies.
- With a simplified billing system, personnel expenses for clerical staff are minimized.
- In retail situations, the lightning-quick transaction times of mobile payments allow you to increase sales volume during peak times.
- Mobile payments eliminate bounced check fees.
- Mobile payments are usually converted to cash inflow in one business day; payments by invoice and check can take up to 60 days to convert.
How to accept mobile payment
Generally speaking, customers will need to register with the mobile money payment service your business chooses. Your business can also choose to accept mobile credit card swipe transactions.
You may also elect to establish accounts with all popular mobile payment services. That way, no matter which provider a customer prefers, you will be able to complete the transaction.
Most mobile money payment systems utilize SMS, an Internet browser or an app to complete the transaction. Once the initial setup is complete, a few keystrokes will enable buyer and seller to send and receive money in a matter of seconds.
Other essential considerations
- Check into local mobile coverage. It’s getting harder and harder to find areas without coverage these days, but there’s still a chance that mobile payments might not be convenient in your area. Test for dropped coverage areas, and have a backup payment plan ready just in case.
- Inquire about service fees. Not all mobile payment systems are created equal. Look for plans with the best rates, and encourage your customers to sign up for that mobile payment system. When your costs stay low, your customers’ costs stay low, too.
- Integrate your business and mobile payment processes. Don’t let orders and information slip through the cracks. Mobile payment systems must be integrated completely with the rest of your business.
- Find out where your money goes. Can you access your money immediately? Ideally, you shouldn’t have to wait to use the money paid to you. If there’s a waiting period or lag between the time of the transaction and the time your balance is available for use or withdrawal, it could affect your ability to order supplies and pay bills.
Mobile payments are making life easier for business owners and customers alike. If you’re not already accepting them, now is definitely the time to look into it.
— Contributed by Alyssa Gregory through a partnership with U.S. Bank.
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