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Some Instances Where Mobile Payments Rock

Angie Mansfield

April 15, 2013

Mobile payments are getting more attention lately, with new apps and new payment processing services offering better options.

But are mobile payments right for your small business?

Here are some scenarios that show the versatility of this relatively new payment processing method:

1. The Caterer

Any company that conducts business at a customer's site can benefit from mobile payments, but a caterer is a great example. Once the event is finished, the caterer can ask the event organizer to make a payment on the spot, using a card reader attached to a smartphone.

This payment method has value for both the business owner and the customer. The caterer won't have to wait for weeks before the invoice gets to the customer, gets approved by Accounts Payable, and finally gets paid. And the customer can take care of the transaction right away, without having to worry about added paperwork or writing a paper check.

2. The State Fair

Another excellent example of mobile payments in action is any business that sells its wares at a state fair or other event. Instead of having to turn away customers who either didn't bring cash along or would just rather pay with a card, this small business owner can take their credit card payment right at the stand.

Without being tethered to a phone line and credit card processing equipment, small businesses can take their show on the road, conducting business anywhere they need to be.

3. The Start-Up

Mobile payments provide a great alternative for start-ups or other businesses with tight budgets and not a lot of cash flow. Mobile payment processors tend to be cheaper than getting a regular merchant account, and don't require expensive equipment or extra phone lines to run.

Another advantage to mobile payments is that many don't require long contracts with early termination fees -- a common requirement for traditional credit card processors. And the mobile payment processing apps usually provide reports about sales, in real time, giving the small business owner a powerful tool for keeping up on their company's health.

4. The Mobile Shopper

Consumers can add apps from their favorite retailers to their smart phones. These apps allow retailers to send coupons and other promotions to the customer's phone -- promotions and coupons that can be set to show up on the user's phone when they are close to the store.

Once inside, the customer can use her phone to check out price comparisons. When she decides to make the purchase, she can access the discount code and pay with her phone at checkout.

While mobile payments may not be right for every small business right now, they provide a great alternative to traditional merchant accounts for many small companies.

Whether your small business is mobile and you need the flexibility mobile payments provide, or you're just looking for a more inexpensive way to accept credit cards, this payment processing method may be perfect for you.

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