Do Mobile Payments Help Small Business Collections?
Consumerism is changing so fast, trends that seemed to represent the future of commerce a couple of years ago are now old hat. Innovation is outrunning itself.
Take chip and pin, which once held the promise of becoming a far superior replacement for swiping and signing. When the idea was introduced a decade ago, it was assumed that everyone would be using it by 2014. But then, in 2004, few would have predicted the stratospheric rise of the smartphone. Now mobile payments are threatening to make an anachronism even of plastic credit cards. Chip and PIN has missed it's chance.
If you’re a small business owner, mobile payments might seem like an innovation designed for for big corporations, but if anything, the reverse is true. Big companies can, after all, absorb the cost of bounced checks and delayed payments. It’s the little guy who needs to be on top of his collections process, as a single large late payer could easily put him in the red.
It’s all about making it easier for the customer to pay. The fewer steps there are in the payment process, the less likely they are to put it off. Mobile payments represent the easiest payment method around. Offer customers the ability to pay using their smartphone and they will likely grab it with both hands.
As we've seen, this shift could spell the end for credit cards. Checks are already on the seriously endangered list. Setting up a mobile payment system for your business puts you ahead of the curve, so why even consider going without one?
Some small businesses will claim the cost of setting up mobile payments is prohibitively expensive. But there is a growing number of affordable options out there, and the more competitive the market becomes, the better it will be for SMBs and startups.
It’s hard to say which payment method is right for your business. The answer differs according to industry, brand image and turnover. It would be false to say mobile payments – or anything else – holds ‘the answer’ to the collections process, but it certainly makes the process easier for specific kinds of consumer.
You can’t, in the end, force a defaulting customer to pay without going through a lengthy, expensive legal process. But you can make it a lot easier for them to do so. And the fewer barriers to payment there are, the better for everyone. Check out some of the mobile payment options available, and move your collections process into the 21Century.