Did you know that there are roughly 29 million online payments daily? These payments vary from online retailers to mobile transactions. If you’re a business looking to tap into mobile payment systems, how can you find the right system?
Luckily, there are dozens of effective options that you can invest in. Read on to learn more about how to find a trustworthy payment processor. Afterward, we’ll look at some suggestions of what payment options you should look into.
What Makes a Payment System Effective?
To begin, how can you narrow down the list of payment processors? With dozens of competitors, finding the one that best suits your business should be your first task. Here are four factors to look for when finding a payment processor.
Security
The first and most important factor in any payment system is its security. Studies show that 47% of American adults have had their personal information exposed or stolen by cybercriminals. Roughly one in five people report a financial loss as a result.
Security online is critical to your mobile payment system. Look for a payment processor that follows the necessary compliance laws. These guidelines help ensure that they’re taking the steps needed to protect users.
Versatility
Another important factor is the versatility of a system. Put simply, how many transactions can you use your payment processing system for?
Versatility includes what external payments your processor can accept. Will your processor accept Amex, Visa, and MasterCard? These are the most common options, but far from the only ones to think about.
The more options your system accepts, the more transactions you can handle. Mobile payments can come from many different sources, so do your best to pick a payment processor that can accept them all.
Ease of Use
How easy is your processor to use? If you’re taking a high volume of transactions, it’s integral that the processor is easy to use.
If the processor is simple, your employees can quickly handle transactions. Doing so keeps the line moving so that customers aren’t waiting for too long. These precious seconds can be the difference between a happy customer and a frustrated one.
Additionally, training your employees is easier on a simple system. You won’t have to teach them how to take different types of payments or the various payment options. Instead, an easy-to-use system encourages quick learning and lets them get to work.
Low Fees
Finally, the factor that many businesses will focus on is the fees. Fees and charges are what the processor will charge you for operation.
The most common fee is the transaction fee. A transaction fee occurs when the processing company takes a percentage of each transaction. With a high transaction fee, you may feel this begin to eat into your profits, so lower fees are better.
Another fee is the first-time installation. Most mobile payment systems will have low fees, as these fees typically are the set-up of physical systems.
However, you may find yourself paying a premium for the license. Don’t let this turn you away, as some options with high costs are reputable and secure. Do your research to find which systems are the most secure and reliable and focus your decision on these factors rather than costs.
Finally, there may be fees for not doing enough (or doing too many) transactions. These issues can cause you to incur fees for particularly busy or slow months of business. Look into what the “missed mark” fee is for your system.
Good Mobile Payment Systems
Now that we know some of the factors that make a system good, we can look for which systems fit this list. Here are a few options you can explore for your payment processing system.
Apple Pay
Apple Pay has become one of the most popular mobile payment systems on the market. One of the reasons for this popularity is that iPhones remain the most popular smartphone on the market.
Apple Pay works via iMessage and has no app to download. As such, setting up the system is a non-factor. Most phones come with Apple Pay already managed, with users only needing to add their card.
Another benefit is that Apple Pay is famously secure. The system has integrated 2FA or two-factor authentication.
However, the failure of Apple Pay is that only Apple products can use the system. If someone doesn’t have an Apple smart product, they cannot complete a transaction with this system.
Google Pay
A strong alternative is Google Pay, which comes preloaded on most Android phones. The system is also widely accepted, allowing you to take nearly all types of payments.
Google Pay is effective for a business’s transactions. For person-to-person payments, the system is less useful. Users will need to download a different app to complete person-to-person payments.
Venmo
Venmo is effective as a mobile payment system for smaller companies. Their transaction fees are low and the set-up fees are negligible.
Additionally, most people are familiar with Venmo. It’s considered to be more reputable and secure than its main competitor, CashApp.
While Venmo seems like a great choice for businesses, it’s rarely the best choice. Companies with few transactions that are easy to track will benefit. Otherwise, you’ll find that most retailers won’t accept Venmo, while most mobile payment systems may not take Venmo payments.
Exploring Your Payment Options
Finding the best option out of the many mobile payment systems can feel overwhelming. You should look into what the needs of your business and your financial situation will allow. Always focus on a secure and versatile payment processor over factors such as being cheap.
For more information on how to pick the best payment processor for your company, be sure to contact us. You can also browse our services to see how we can help you implement your best business choices.
