When mentioning m-commerce, you can’t not mention the driving force that contributes a large part to the current success of m-commerce, namely Mobile Payment Systems.
Mobile Payment Systems are systems that let shoppers pay by mobile devices. Mobile payment systems are divided into several types including SMS payment, NFC Payment and Payments via Mobile App, etc.
Mobile payment benefits both consumers and businesses. In this article, we would like to sum up some advantages of mobile payment systems.
Mobile payment systems’ advantages for consumers
- Convenience: It’s thanks to mobile payment systems that the whole online buying experience is now effortless and much more convenient than before. Customers can now choose to make payments anywhere, at any time with their wirelessly-connected devices, since as the industry moves forward is also the growing demand for convenience that goes along with it.
- Security: By using mobile payment, consumers no longer have to assume the security risks associated with cash or worry whether they have enough cash in their bulky physical wallets or not since mobile payments free them of the need to carry cash. Moreover, mobile payment is also a secure way to pay. Credit card information is not stored on smartphones directly but on the cloud. In this way, your vital information remains secure even if consumers happen to lose their phone.
Mobile payment systems’ advantages for retailers
- Cost: Simply by implementing payment methods characteristic of mCommerce such as barcode scanners, businesses can save the monthly costs which often accompanied with credit card terminals.
- Engagement: Offering mobile payment options to customers both online and offline simply makes the purchase process easier for them. This can increase conversion rates and the number of returning customers. Moreover, businesses are able to speed up the checkout process and capture the business of impulse buyers who may have been less able to buy something if a traditional transaction were required.
Nowadays, as more and more online shops are integrated with one-click purchase which has dramatically changed the mCommerce landscape, shopper expectations for their shopping experience have are also vastly changed.
These changes—or rather, these technological transformation in the mobile payment systems—can undoubtedly boost every online store’s revenue and conversion rates. It is thus that adopting the current best practices (e.g. Progressive Web App) while they’re fresh is an ideal and most profitable strategy for retailers.