April 7, 2020
In this tough business climate, online retailers need to create interesting immersive experiences for their customers, without having any obstacles to purchase. When it comes to a mobile payment gateway, it plays a big part in the purchase process. In this article, we focus on mobile payments, what they are and how they work. A mobile payment is essentially any payment that is made via a mobile device. Usually, the process is that customers enter their credit or debit card details into an online form while checking out. This remains the most common form when it comes to mobile payment solutions. However, many other methods are growing in popularity, such as PayPal, prepaid cards, bank transfer modes of payment, mobile wallets, cryptocurrency, as well as many others. If you are an ecommerce website, then there are three main types you should be aware of: a. Traditional payment forms: This happens when the customer enters their debit or credit card information via a form through a browser. Many online stores will allow their customers to save this information, so they don’t have to repeat entering the details every time they shop. b. Mobile wallets: Many mobile online payment services will enable users to save their credit or debit card details on their phones. Certain stores even allow their customers to make the payment using mobile wallets, which removes the need to re-enter their details every single time. Nowadays, mobile wallets can be used in storefronts as an alternative to cards. NFC or near field communication allows customers to make payments at kiosks and terminals specially designed for this. c. Online wallets: These include services like PayPal, which enable users to save their debit or credit card details through a third party. This way, the online payment technology enables customers to login to their account to process their payment. There is increased security using this method, which is why many customers prefer this method. Why are Mobile Payments so Important in Ecommerce? Many retailers believe that it is enough to simply offer the traditional credit or debit card forms of payment. However, when it comes to mobile payments, it can offer an extra edge to a retailer in remaining competitive in the business. a. More mobile sales: Every year, mobile sales are growing and therefore it is essential that retailers provide a wide array of options if they want to cater to a broader spectrum of customers. This is especially true of the younger generation, which prefers a mobile payment gateway to the traditional forms of payment. b. Removing security issues: By offering mobile payment services to customers, retailers do away with a lot of the security issues. Many customers have concerns about the safety in entering their debit and credit card details online. Offering the customer, the option to checkout without having to key in their details is a big bonus. c. Streamlined options: Many streamlined options for mobile payments help in removing the friction often present during the checkout process. This can help boost conversions. Customers are able to check out on the online payment services without having to spend extra time inputting their card details. Many mobile payment techniques can help to reduce fraud for retailers. This is because every buyer is always vetted by the mobile wallet providers before such buyers can use these services. Therefore, there is lesser chance of false payments. In addition, by offering these alternatives in mobile payment, it helps the retailer to increase overall customer satisfaction, and improve customer retention as a result as well. Happy customers are more likely to re-visit your store.