When it comes to operating a brick and mortar retail business, there are plenty of ways that taking payments from customers has improved through the years. Transactions with customers used to be cash only in most places, with some taking checks. When credit cards were first introduced, machines to swipe them didn’t yet exist, so most retailers used a manual credit card imprint machine to get credit card numbers.
Once pin machines became popular, more people began using credit and debit cards for most of their shopping transactions. Plenty of people still carry cash and checks, but using a credit card is by far one of the simplest ways for many people to manage their funds. Today in the United States, there are an estimated 609.8 million credit cards in circulation: these include big names like Visa and Mastercard, the top two credit cards in the world, and individual credit cards for specific stores. Debit cards, which are tied to a person’s bank account, are also a popular payment method.
But credit card payment processing is done on more than just pin machines or at a register, also known as a point of sale (POS) system or a terminal. A few years ago, many retailers switched to self checkout machines to save money on personnel costs; these machines let customers process their own transactions without the aid of a cashier. While these were considered the cutting edge of technology for a while, there is a new type of terminal that is making waves in the retail world: mobile payment processing terminals are becoming increasingly popular.
What is mobile payment processing? Mobile payments are completed using a small device that attaches to a mobile device, like a smartphone or a tablet. Because these devices can move around a store, they don’t have to be used in one location only, which makes it easy for retailers to process more payments during peak hours.
Mobile payment processing is completed in the same manner as regular credit card payment processing in terms of fees and the way a retailer will receive payments. But mobile payment terminals make it easier for businesses on the go, too, by providing another solution for accepting payments. No more turning customers away if they don’t have cash!
With the way payment processing has evolved throughout the years, mobile payments could be here to stay. They may also begin depending on more advanced means, like thumbprint payments or QR codes. What do you think: are mobile payment devices here to stay, or will they go the way of the card imprint machine? Tell us in the comments section! Continue reading here.