Do you have a Mobile Presence?
September 27, 2010 Leave a comment
Given the smartphone phenomena and how fast they have become our alternative computing device (well, not 100% yet), if you are a business owner, you seriously need to consider having a presence on mobile phones. The rational is pretty similar to early 90’s when World Wide Web were introduced to the market and we found it necessary to have www.mybusiness.com to survive.
There are countless number of reasons your business should care about the mobile presence, particularly the mobile payment. Smartphone is becoming the integral part of our lives – calling, texting, surfing the web, video chats , and updating our social networks. We live without internet, but not without mobile, it is your identity, then why not valet?
Total worldwide mobile payments stood at USD $68.7 billion in 2009, according to a study from Telecoms Market Research. That number is predicted to rise by more than 800% in the next four years. Simple, DIY credit card processing solutions, like the Complete Credit Card Solution, and others already hit the iPhone market, and more services are expected in the future for all platforms.
The real heart of business mobile payments is the micro-transaction. Paying less is generally better than paying more. People are also more willing to pay frequent small payments rather than throw down a lump sum. Using ringtones as an example, more people would pay $1 for several ringtones than shell out $5 in one go for five ringtones.
Businesses, particularly, the small business can follow this trend by selling less-expensive goods online, as smaller goods could be a real hit for the mobile payment crowd. Customers can more easily rationalize those smaller purchases and drive more sales to your business.
Another perk for business owners is that mobile transaction fees are usually less than credit card fees. Sales through mobile could save you a small amount on every purchase.
Mobile payments will also enable merchants to collect data in much the same way as your everyday credit card purchases. Adding mobile payments to your business can help keep track of customer phone numbers, buying histories, and any other necessary information. Having this extra source of data about customers and their purchasing habits will enable you to offer more targeted and relevant deals, discounts and products to specific purchasers.
As smartphones become more prominent in our everyday lives, it is easy to see a future where purchases can be made ‘on the go’ by simply using a phone.
A payment method that allows shoppers to shop instantly whilst providing the seller with key data in order to target buyers or offer more tailor made services / products is surely a win for both parties? Also ,the potential to tie mobile payment in with location based services is huge; and if implemented right there could be a lot of money to be made from businesses using such services.
It will be interesting to see what the future holds…