Mobile Payments: A Big Opportunity for Small Business Owners Small business owners are mostly concerned about the cash flow being seamless and reliable. They are very much worried regarding dealing with the fluctuations. Any gap – or “lumpy money’ – in a small business concentrates the attention of the owners towards expansion very difficult. Cash records on registers and mails, if lost cause such gaps creating considerable troubles for the owners.
With the use of mobile payments, it is very much easier for the owners to turn their sales into working capital overnight. Now, instead of payments on checks, the owners can switch to the on spot payment strategy by using mobile payment services.
Not very long ago, billing the customers for the services like catering, plumbing, photography and the likes, was the usual medium of payment, which also involved a long term wait for the customers to pay and those payments to arrive.
Switching to the advanced payment methods such as mobile payment helps such businesses to grow themselves significantly. Following are some of the tools provided by the mobile payment that ensure quick payments.
Mobile-card readers
Also known as “dongles”, these readers are attached to the audio jack of the smartphones, providing the owners with an ability to just swipe the credit or debit cards from anywhere. The cost per transaction is usually around 2.75 percent of the transaction amount.
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Electronic invoicing
Invoices and bills are no more a piece of paper. Electronic billing provided by a variety of software apps enables the small business owners to automate the receipts, invoices and bills and preserve them digitally. These services usually cost about $15 per month.
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Photo-card processing
Apart from the card reading technique, another way of charging payments digitally is the photo-card processing, where a snapshot taken of the credit or debit card is analyzed by a software app to interpret or translate the card number, which is then used by the app to charge for the payment. The charges for this service usually range around 20 cents per transaction, along with 1.95 percent of the transaction for the debit cards and 2.95 percent for the credit cards.
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Small business owners are usually a part of the payroll cycle where they have to pay back to the suppliers from the revenue they generate from such businesses. Delays in the delivery of payment cause hindrance in the cash flow, disturbing the cycle. This hindrance can now be avoided with the help of on spot payments using mobile payment tools.
The rate at which the modern payment technologies are being adopted by the small business owners is very high. This explains the interest of the owners in the ways of speeding up the cash flow. Moreover, the on spot payment using such methods also reduces the need of loans by the owners for capital and they are thus benefited a lot.
For the owners who are concerned about the security of their finances using mobile payments, it is necessary to be mentioned that in case of added levels of security to these payment services, mobile payments can make all the financial transactions much safer than the credit or debit cards.
Along with all the support that these methods provide the owners of small businesses, they are also saved from the cumbersome exercise of rattling papers and pens for jotting down the financial details and sales in their registers or having them input manually to the computers. With mobile payments, all this work is done by the apps and all the data is recorded digitally and preserved for reference, if required, in the future.
Author’s Bio: This article was written by Asad Tariq. He loves technology and enjoys to meet new people who love technology. He sometimes blog at Inbound.zone
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