Editor’s Note: Today’s guest blog comes from SecureKey’s Executive Vice President of Marketing, Andre Boysen, who is responsible for cultivating new and exciting opportunities in existing markets for the company.
There’s little denying that smartphones have become a staple in many people’s lives. They offer instant access to restaurant reviews, movie ticket reservations, social media and even, on occasion, calling up friends and family. Mobile phones have also taken the place of certain equipment like alarm clocks, watches and music players. These devices perform numerous tasks and their reach is bound to expand as the technology improves. Soon enough, many people will also be using their smartphones to complete transactions both online and in-person, and businesses should prepare for this change in buying habits. Below are three of the reasons you should consider making this move now, rather than later.
1 – A centralized resource
As noted, many smartphone owners already rely on their devices for numerous tasks throughout their day. Eventually, many will come to expect the same when purchasing goods or services. Businesses that are prepared will be able to overcome some of the initial hurdles involved with the process and capitalize on a growing market that only a select few retailers are currently catering to. If you doubt the validity of allowing mobile payments, you need only look to Starbucks, which is now earning 11 percent of its profit from its mobile payment app, according to The Wall Street Journal. As the technology matures, other businesses are bound to follow the success set by early adopters.
2 – A better authentication method
Another key attribute to smartphones is that they help identify people in a much more secure way than numerous other methods. In most cases, mobile devices are rarely shared yet always on their owner. While passwords have typically been the standard way verifying another person’s identity, this method has numerous flaws that can lead to fraud or other problems.
Meanwhile, thieves using stolen credit cards might not be noticed until accumulating a considerable number of charges, because a forged signature won’t be noticed right away, if one is asked for at all. With a smartphone, owners can lock people out of the device, and chances are that they will notice almost immediately if it is taken from them – according to Kleiner Perksins Caufield & Byers Internet Trends report, people look at their phones about 150 times per day on average. Natural habits alone lend mobile technology better protection than other payment methods. By working with firms that have already moved toward securing the mobile point of sale, businesses can also rest assured that customer data will be properly encrypted and kept safe during all transactions.
3 – And greater flexibility
Finally, you should add mobile payments to your repertoire of accepted options simply to provide your consumers a greater number of options. Much like credit and cash are both acceptable payment methods now, mobile-based transactions are bound to be a third viable option in the near future. Customers who have lost their wallet, forgotten it or otherwise don’t have it on hand will appreciate being able to use another way of buying goods that isn’t dependent on the wallet itself, and some people will prefer primarily using their smartphone.