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How a Mobile Payment Service Can Grow Your Online Business

Jennifer Lonoff Schiff | Jan. 30, 2013
As more and more smartphone and tablet users shop via their mobile devices, being able to accept mobile payments is becoming a more important element of ecommerce. But does it make sense for your business? Mobile payment service providers Square, PayAnywhere, PayPal and Bank of America discuss fees, security and which types of business would benefit the most.

Bell: Our Mobile Pay product integrates with existing merchant accounts, and it can fit into a merchant's larger payment needs. If you lose power, for example, our readers would still allow a business to accept card payments. Since our Mobile Pay launch, we have gotten requests from a number of existing merchants to add our Mobile Pay readers to their existing services.

Nayar: PayPal Here is intended for sole proprietors and small businesses that don't have an existing POS solution in place, allowing them to accept multiple forms of payment. That being said, PayPal also offers solutions at the POS for vendors with existing solutions that don't require merchants to rip and replace hardware or massive software upgrades. Through relationships with POS manufacturers such as VeriFone, Ingencio, Equinox and POS software providers like Erply, Leapset, ShopKeep and Vend, PayPal works seamlessly with a retailer's existing POS hardware. In 2013, PayPal will also be accepted at over 7 million merchant locations that accept Discover.

What are your fees -- and do you offer a volume price break? Also, what do you say to business owners or managers who balk at paying the fees?

Nayar: With PayPal Here there is one simple flat fee for accepting payments, competitively priced at 2.7 percent per transaction. The mobile app and card reader is free for both businesses and consumers, with no account setup or monthly fees.

Bell: For Mobile Pay on Demand, our service for small businesses, our service is a flat fee structure [2.7 percent per swipe]. For merchants with larger transaction volumes, we offer Mobile Pay Business, which is priced through negotiated rates like other products we offer to larger clients. We believe our fee structures are competitive with others throughout the industry.

Ury: Square's fees are both low and transparent [2.75 percent per swipe or $275 per month]. And our monthly pricing plan can bring fees down as low as 1.3 percent per swipe.

Metzger: For businesses that balk on payment credit processing fees [PayAnywhere charges 2.69 percent per swipe], it is widely known fact that businesses that don't accept credit cards lose up to 70 percent of purchases each year. Consumers prefer credit cards to cash for many reasons: they offer rewards, certain protections to the card holder and are generally easier for larger purchases. In addition, PayAnywhere merchants have told us they are increasing sales volume by 20 to 50 percent from before they accepted credit cards. Other industry organizations place the average percentage increase in sales significantly higher than 50 percent once a merchant adds credit cards as a payment option.

Mobile Payment Solution Large vs. Midsized vs. Small Businesses

 

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