The Growth of Mobile Money

Mobile payments, also referred to as m-commerce or mobile money, offers merchants an opportunity to accept a new method of payment. The Center for Retail Research released some interesting findings recently that clearly showed a rapid growth in the amount of customers making mobile payments. There are some estimates that mobile money will account for over 119 billion dollars of transactions in retail by the year 2015.

It is projected that 1 out of every 10 holiday shoppers will buy a present through a mobile transaction this season. This trend is likely to continue its upward growth as new technology emerges, customers become more acclimated to m-commerce and become more confident in the security of mobile money. In 2013, mobile money is expected to become more mainstream as mobile devices and m-commerce services become more affordable.

Some economic experts have projected that m-commerce will reach upwards of a trillion dollars by 2020. Merchants may want to think about implementing ways to accept mobile money in order to capitalize on this booming trend. The steady move away from using cash has been happening at a rapid pace as credit and debit cards become easier, safer and more convenient to use. Small business owners who still do not accept plastic are virtually non-existent, and in a world that is more swipe happy than ever, the last remaining few will not succeed without accepting credit cards.

Top m-commerce merchants include E-bay and Amazon, but that does not mean a small business owner cannot cash in on this growth trend. There are countless benefits for a small business accepting mobile payments. Accepting mobile money increases profits, expands the customer base and creates new business opportunities.

If your small business does not accept mobile payments, now may be a good time to start. Traditionally, merchants who accepted credit card transactions would have to go through a merchant services provider or a credit card processing company. They would also have to lease expensive swipe machines, terminals and enter into long-term contracts. With the advent of mobile device applications like Intuit’s GoPayment and Square, merchants can simply attach a small card reader to their mobile device and pay a per transaction fee each time a card is swiped.

There are also countless choices for merchants that would rather have a merchant services account. Some applications do require a mobile merchant account; primarily, this would a cheaper option for small businesses expecting a greater rate of mobile money than small businesses using m-commerce sporadically.

There are two basic methods for physically accepting a mobile payment. The first way allows for a credit or debit card to be swiped through a small reader attached to a mobile device and the second way calls for the credit card number to be entered into the application and then a stylus is used to capture the card owner’s signature.

M-commerce will continue its growing trend as it is accepted by merchants and consumers alike. In today’s competitive business industry, a small business may need to accept mobile payments in order to survive.