Smartphones are “smart” for a reason: they offer users the ability to do pretty much everything desired. This includes the relatively new world of touch-based payments. Consumers are becoming more comfortable with purchasing items online, according to Mobile Commerce Daily. With this increase in comfort comes an increase in the use of third-party touch-based payment platforms.
The number of users expected to use these platforms is expected to increase by 150 percent, according to research by Deloitte Canada. Platforms such as Apple Pay are growing in popularity, with an increasing number of credit card devices offering the ability to pay with your mobile device instead of a card.
But mobile payments can increase sales online as well as in the store, and eCommerce merchants who capitalize on this growing trend stand to profit from it.
Convenience and Security
For a customer, mobile payments offer a lot of convenience. Instead of entering their credit card information multiple times, they can use an app like Apple pay, enter their information once, and use it at multiple locations. This means they don’t have to worry about having their card on them for a spur of the moment purchase, and when they receive their updated VISA or MasterCard with a new expiration date, they don’t have to go to every single site to update it.
But more importantly, mobile payments offer users security. When a customer buys something with their phone app, it won’t turn over their credit card information. Instead, the merchant gets a one-time token, almost like a prepaid card, for the exact amount of the purchase. This protects the users information, since it means that even if someone hacks the merchants computers, like what happened to Target in 2013, a customer’s credit card information is still safe.
Google and Apple both mention this security prominently on their websites. Visa and other companies offered virtual “online-only” credit cards before mobile payments, but their solutions were difficult to implement. Setting up Apple Pay on an iPhone, or Android Pay on a Nexus phone, is as easy as following a few simple steps.
In fact, if you already have a card associated with your account, as many users do, you only need to verify the CVV code and expiration date. Security is something that many customers want, and tech companies finally found a way to simplify the process until it’s also convenient.
Capture Impulse Purchases
Having someone sign into your website to make a purchase is a great way to capture their information for follow-up sales, but it can also prevent users from buying from you store instead of from a larger site they may already be familiar with, even if you have exactly what they’re looking for.
New payment solutions like Stripe, which offers mobile payments and integrates with most major eCommerce platforms, allows users to pay for their purchase using a system they’re already familiar with. In addition to the perception of security this provides, this streamlines the purchase process, which could help increase your shopping cart conversion rate.
Mobile Spending Will Only Increase
With the number of users who have access to smartphones only expected to increase, the number of potential mobile customers for your website will continue to grow. The idea of a “mobile wallet” is appealing to customers and business owners alike since streamlines the purchase process while adding an additional layer of security.
Having a website that’s mobile friendly will help increase the traffic your site sees, and adopting mobile payments faster than your competitors is one way you can help increase you conversions.