Accepting mobile payments is a trend that contractors simply cannot ignore.
In 2019 alone, 96% of Americans owned a cell phone of some kind, with 81% owning smartphones (skyrocketing from 35% in 2011). Smartphones allow consumers to browse online, connect to friends and family within seconds, and make purchases on their device via debit or credit card – if a business allows this option.
Thanks to technology and many software applications, accepting mobile payments for your business does not have to be difficult or expensive. The advantages of accepting mobile payments overcome the disadvantages, and it is important to understand these benefits to gear your business up for success in the future.
Consumers Do Not Carry Cash
Pretty self-explanatory, huh? In our world of online shopping and credit cards, many consumers will opt out of purchasing an item if they do not have the cash on-hand to pay for it. According to NerdWallet, only 23% of consumers even use cash for point-of-sale transactions. Without offering a cashless payment option, small businesses limit themselves to a much smaller demographic of potential customers.
Accepting mobile payments via debit or credit card allows businesses to offer an immediate, cashless payment option to all customers. This not only increases the chance of growing your customer base but your sales, as well.
Consumers Appreciate Rewards
There are many reasons consumers choose to support small businesses over larger chain corporations. A few include the desire to support local communities, feeling valued by small business owners, and receiving quality products and services for a fair price.
Setting up a mobile payment system allows you to honor support from customers with incentives and rewards. Starbucks, although large, caught on to this trend early on.
Mobile payment software can track each time a customer purchases products or services from your business, keeping the information stored on the app itself. This information can be used to send coupons, discounts, and rewards based on buying behavior.
Giving back to customers makes them feel valued and goes a long way to encourage repeat purchases.
Consumers are Busy
Mobile payments are fast, and consumer lives are busy. Unless someone’s A/C breaks in the dead of summer (hey, it happens!), people have options when it comes to where they spend their time and money. Using the right software to accept debit and credit card payments ensures your customers experience a fast and hassle-free purchase process.
Within seconds, customers can complete their purchase and feel confident that their experience with your business will be smooth sailing in the future. Mobile payment processing also gives your business the ability to process more purchases at once – like during busy hours or peak seasons – and receive the money quickly. Win – win!
Consumers Follow Trends
At any point in time, there are new and existing buying trends in your area of expertise. For example, the purchase of luxury items plummeted during the 2008 Financial Crisis. Many consumers simply did not have money to spend on items outside of necessities like groceries and mortgage payments – especially not luxury apparel or jewelry.
No matter your service area as a contractor, following trends in your area of expertise is important. Instead of keeping track of customer purchases, inventory, and buying behavior by hand – allow a mobile platform to offer this information at your fingertips. Use this information to understand what products or services are currently popular with your customer base, and why other products or services in your wheelhouse may be experiencing a decline. Knowing what your customers want (and do not want) is a key factor in growing and succeeding in business.
Contractors Have Options
Now more than ever, contractors have many options when it comes to choosing the right mobile payment software. Many software applications are charging less fees per transaction than credit card companies to help small businesses keep more of their profits.
The right mobile application will work as hard as you do to ensure your business continues to grow and succeed. From generating estimates and sending invoices to collecting payments accurately and quickly via credit or debit card, the process will be easy and hassle-free for both you and your customers.
Research mobile payment app providers to understand which one meets the needs of you and your customers. For your business – it is not about if you will accept mobile payments, it is about when. With more and more generations losing sight of what it even means to write a check, mobile payment options are the future of every growing business. A 2016 study published by MIT found that shoppers are willing to spend up to 100% more when paying by plastic versus cash.
Ask yourself: without mobile payments, what potential customers and income is your business missing out on?