The way we pay has gone through several exciting revolutions. But none is perhaps as interesting as what is happening today. All the big tech players are trying to break into the NFC market. And they want to fundamentally change the way we pay. Rather than carrying around loads of separate cards in wallets, tech companies want to put payments in the phones themselves. It’s a big step forward for customers who get to consolidate yet more functionality in their phones. But it’s also a big advance for business. Here, we’re going to report some of the reasons why companies are getting excited about Apple Pay, Samsung Pay, and Google Wallet.
Fewer Abandoned Carts
Allen Stout is the CEO and founder of Blue Stout. One of the problems he noticed in his business was customers abandoning their carts just before checkout. He points out that the mobile browsing experience is seamless these days. He also points out that the add-to-cart process is also very simple and straightforward. But, he notes, payment is still a hassle. And it frequently forces customers to abandon their carts.
But with Apple Pay and the others, this problem should go away. Once the mobile payment options are available, customers will be able to check out just as seamlessly as they shop.
More Security
Jennifer Pollock is the lead content marketing editor at Square. She says that the new payment technologies will make paying in the future much more secure. Apple Pay, for instance, has many layers of dynamic encryption. It also has fingerprint technology and TouchID. The cool thing about Apple Pay is that the customer phone only has to be held within a few centimeters of the credit card reader. So that means that they don’t have to spend time tapping in their PIN, which could be stolen.
More Mobile Conversions
One of the problems with mobile shopping today is that it’s really tough to get conversions. Customers are happy with their experience overall. But when it gets to the part that counts, customers often stop. Michael Ugino is the co-founder of Sellbrite. He sees new mobile payment technologies as changing this sorry state of affairs. He points out that already more than 50 percent of internet traffic on ecommerce sites is from mobile. And so he argues that mobile payment adoption will boost conversions by reducing friction. The easier it is to pay, the more return companies will get from their advertising dollars.
It Will Help Companies Compete
Many customers won’t proceed any further on your website today if you don’t have a PayPal button. It’s seen as more secure and a reason for customers to continue shopping. But Calatin Zorzini of Ecommerce Platforms thinks all that will change with new pay technologies. She says that Apple Pay will help smaller companies compete. It’ll provide them with a trusted payment mechanism. And they won’t end up having to pay as many fees, as they currently do on Paypal. Apple Pay will make it easy for customers to shift between online and offline payments.
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