The advancement of technology over the past decade has significantly changed the way people shop. Credit cards and mobile payments are making shopping more convenient and enjoyable, and they are increasingly becoming the preferred forms of payment for consumers around the world.
As such, businesses need to accept these forms of payment in order to attract more customers and stay abreast of their competitors.
The use of credit cards in the US
An infographic released by the Community Merchants USA in 2013 showed that about 66 percent of all point-of-sales transactions in the US were made with credit cards, debits cards and other types of plastic payment cards. Cash sales accounted for only 27 percent of all purchases, and the figure is expected to drop to 23 percent by 2017.
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Also, 69 percent of consumers aged 18 to 34 and 58 percent of consumers aged 35 to 44 said that they will only buy from businesses that offer multiple forms of payment, and 58 percent of small businesses said that their customers had asked them to accept credit card payments on a regular basis.
However, despite the obvious advantages of accepting credit cards, data from Intuit revealed that about 55 percent of the 27 million small businesses in the US do not accept credit card payments.
Benefits of accepting credit cards and mobile payments
Since a majority of consumers prefer to pay with credit cards, accepting credit cards and mobile payments will make your business more appealing to a larger number of people, which will lead to an increase in sales. It also enables you to sell your products online.
All you have to do is set up one or more websites and build shopping cart plugins to facilitate credit card and mobile transactions.
By accepting credit cards and mobile payments, you will also be able to capture impulse purchases. According to analysts, impulse purchases account for about 80 percent of all mobile payment purchases.
Most businesses are already accepting credit cards, and you will be left behind if you are not doing the same.
By accepting credit cards and mobile payments, you can position your company as a smart business that provides the convenience and flexibility needed by modern consumers.
IMPROVED CASH FLOW
Since credit card transactions are processed electronically, they can be processed very quickly.
Usually, it only takes a couple of days for the processor to deposit proceeds into your bank account. This means that you do not have to wait for checks to clear, bill and wait for your customers to pay, and handle a large amount of cash. Also, it eliminates the risk of receiving a bad check.
When payments are made with credit cards, the data will be encrypted to prevent data theft or loss, and your customers can opt for a higher level of security, such as two-factor authentication.
Also, transactions are protected by the Electronic Fund Transfer Act.
Many businesses are hesitant to accept credit cards because of the fees, but the benefits far outweigh the cost.
By accepting credit cards and mobile payments, you can drive up profits, increase customer loyalty and enjoy sustainable business growth.
About the author
John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to Cloud computing.