Credit card processing with your phone
Mobile credit card processing apps have grown significantly over the last few years. In 2014, mobile payments accounted for about $50 billion dollars. In 2016, consumers spent over $67 billion through payment apps.
Small businesses that want to reach more customers should pay attention to the amount of mobile payments made in-person. By the end of 2017, customers will spend an estimated $16.2 billion with in-person payment apps. Start with these three mobile credit card processing apps so you can accept payments from customers no matter where your business goes.
Square offers a lot of benefits that small and large businesses like. The company developed its first credit card reader in 2011. Since then, it has updated its design so the reader can accept chip cards and NFC (near field communication) options that let customers pay with their smartphones.
You can get a basic reader for free when you sign up with Square. The Square Contactless + Chip Reader costs $49.
In addition to accepting payments, Square gives you the opportunity to:
– Generate sales reports
– Track revenues and expenses
– Accept recurring payments
– Give customers digital or printed receipts
Square charges a 2.75 percent fee for payments made via swipe, dip or tap. Key-in transactions cost 3.5 percent plus $0.15. Because Square doesn’t charge any monthly fees, you only pay when you use Square to process a payment.
Most of the companies that use Shopify sell products online. It does, however, have a point-of-sale credit card reader that you can use to accept payments right on your smartphone. The basic chip and swipe reader come free with your membership. The free reader accepts credit cards with chips and magnetic strips. If you want an NFC swipe reader, that will run you $89.
Shopify costs about the same as Square, depending on what plan you have. The company lets you choose between three options: Basic Shopify ($29 per month), Shopify ($79 per month) and Advanced Shopify ($299).
You also pay a percentage of each transaction:
– Basic Shopify charges 2.7 percent.
– Shopify charges 2.5 percent.
– Advanced Shopify charges 2.4 percent.
Depending on your sales volume, you could save money by using Shopify over other mobile payment options. You should take a close look at your business’s receipts to decide whether Shopify is a good option for you.
Venmo, the mobile payment service owned by PayPal, does more than just accept payments from customers. It also encourages shoppers to share their experiences on social media. If you want to get more exposure for your brand, you should consider the benefits of Venmo.
PayPal built Venmo with consumers in mind. It’s great for people who want to send payments to friends. It’s also useful for companies that sell items online. When it comes to in-person purchases, though, most of your customers will find Venmo difficult to use.
The biggest problem with Venmo is that it doesn’t have a credit card reader. Instead, customers have to make payments through their Venmo apps. If they don’t have the app (not to mention money in their accounts), then you can’t accept their payments.
The good news is that you don’t have to spend any money to use Venmo. If you’re a small business that doesn’t want to pay a 2.5 percent processing fee, then you might find Venmo attractive, at least until you can afford a better option.
Mobile payments have changed the way companies accept money from their customers. Now, you can take credit card payments at festivals, farmers markets and other places away from your store. As long as you have your phone with you, you can sell products practically anywhere.