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What are the Drawbacks and Benefits of Mobile Payment in Startups

Banking CIO Outlook | Wednesday, December 01, 2021

Fremont, CA: With the advancement of technology, it is not surprising that people are becoming accustomed to paying for items with their phones. With apps like PayPal, Apple Pay, and Google Wallet making it simple for customers to pay online, businesses of all sizes began to accept mobile payments as well.

While the convenience of paying for everything with a smartphone has many advantages, it also has a few disadvantages. It is critical to consider these risks before converting your startup to accept mobile payments.

Mobile Payments Drawbacks

Security Hazards

The possibility of data breaches is one of the most well-known risks of accepting payments with a mobile phone. Customers who choose to pay with their mobile devices are putting their trust in one. If this information is compromised for any reason, it could lead to strained relationships between one's customers and one's company, harming one's brand.

Inconvenience for Some Customers

Many people are set in their ways and would rather use a debit or credit card to pay for items. This may be an important consideration for businesses deciding whether to accept only mobile payments or regular payments.

Mobile Payments Benefits

Cost Reduction

Converting one's smartphone into a POS (point of sale) device is a lot easier and less expensive than buying a traditional POS system. Using an app or card reader on one's mobile device saves money on receipt paper and ink because one can email the receipt directly to the customer's device.

Convenience

Convenience is one of the advantages of mobile wallet payments. Customers will spend more money on their services or products if it is simple to make a mobile payment.

When a customer sees an item they want, they are more likely to have their phone on them rather than their credit card, right? Many businesses have already adopted this practice, and there are dozens of examples to back it up. Even laundromats are getting on board, enabling customers to use their e-CleanPay service to make mobile payments instead of utilizing coins to operate their washing machines.

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