The future is mobile, even for payments.
A recent study by Transaction Network Services on the sentiments of US, UK, and Australian consumers on alternative payments found that over 55 percent of its respondents prefer using mobile payment apps. The researchers also found that American adults warmed up the most to this medium, with 59 percent of them favoring payment apps over other mediums. The reason? Applications like Google Pay, Venmo, and Apple Pay are just quick and easy to use compared to other mediums.
Apple Pay, for instance, only requires the user to open the app, tap their phone on the store’s terminal, and authenticate their purchase using their device’s biometrics or unlock PIN. This is much more convenient than swiping a credit card, entering its pin, and waiting for the terminal to authenticate the purchase. Customers don’t have to carry a bulky wallet around for cash or card payments. Everything is on their phone.
With the growing number of people using these payment apps, it’s only a matter of time before you start offering them for your business. After all, the more payment gateways you provide, the more customers your company can accommodate. And you don’t want your business to be slow on innovation. But each provider has a different set of fees and policies that may affect your cash flow.
Consider these factors when choosing a payment app for your company.
You may need to invest in extra equipment to start accepting cash from payment apps. For programs like Venmo, you only need a smartphone or tablet on your cashier to start getting payments. For providers like Apple Pay, Google Pay, and Samsung Pay, however, you need to have near-field communication (NFC) terminal connected to your existing point-of-sale (POS). You may have to contact your payment provider to acquire one. This is because these apps use a phone’s NFC sensor to make one-tap payments.
Unlike their card-swiping counterparts, Samsung, Google, and Apple Pay don’t charge additional fees for transactions. However, you may still have to deal with dues from the credit card companies your customers use for their payment apps. And while Venmo doesn’t need an additional NFC terminal to receive payments, it may charge your business 2.9 percent plus 30 cents for every transaction you make.
Samsung and Apple Pay don’t require you to register if you already accept NFC payments. Google Pay, however, needs you to sign up before using their service. You need to present your company’s Unified Payments Interface (UPI) ID at the end of the form. If you don’t have one yet, ask your payment provider to give you an ID. Once you’ve submitted your registration form, Google will deposit a small amount of money into your company’s account to verify it is indeed yours. After you receive it, you need to enter the exact amount on your Google Pay verification page. When you’ve successfully verified your account, Google will review your sign-up (this may take up to 48hours). You can immediately start accepting payments through their platform the moment they’ve approved your application.
When it comes to setting up Venmo, however, you may need help from a mobile app developer to test the platform out on your device. Once you’re satisfied with testing, you’ll need to verify your business with Venmo by sending them your display name, your business’ logo or icon, and your company’s contact details.
If you don’t have the cash to buy an NFC terminal upfront, consider receiving Venmo payments first. However, if you want to receive cash from a wide range of banks, especially international ones, it may be worth investing in equipment to accept Google, Apple, and Samsung Pay payments. Fees and lengthy registrations aside, the convenience and flexibility you provide your customers with these modern payment options are worth every penny you spend.