According to Forbes, “mobile payments are increasingly being used by U.S. shoppers as customers become more comfortable with the technology.” Not only are there a number of ways your customers could be using their mobile devices to give payments, but you as a business owner could be leveraging mobile devices to accept them as well.
As stated by countless resources, mobile is the direction the payment technology space is heading. It pays to know exactly how mobile technologies will be impacting your business, or potentially already are.
This blog will walk you through how your customers are using mobile credit card processing, how you can accept payments using mobile technology, what sorts of features to look for in a mobile solution, and some exciting statistics about the future of payment technology.
TLDR
- Mobile credit card processing first hit the market 15 years ago and in that time it has risen to become one of the most popular methods for processing in-person payments, both with businesses and consumers.
- Choosing and setting up your mobile payment processing system should be research-intensive, but is a straightforward process, meaning once you know what you want, you can get set up fairly easily and quickly.
- Understanding what you want is the hardest part. You need to understand what features are most important in a mobile processor and the extent to which you need those features. You should also consider what features you may want as your business grows.
What is mobile credit card processing?
Mobile credit card processing refers to the capability of accepting credit card payments using a mobile device equipped with a card reader and specialized software. Mobile devices you can use include iPhones, iPads, and Android devices like Galaxy smartphones.
This technology enables merchants to conduct transactions on the go, typically with both mobile wallet solutions like iOS’ Apple Pay, as well as tap-to-pay, magstripe, and chip cards like American Express, Visa, and Mastercard. This provides flexibility and convenience for businesses that operate in various locations or need to accept card transactions outside of traditional brick-and-mortar settings.
Mobile credit card processing first came on the scene when Square released its original mobile credit card reader in 2009 and by the early 2010s, it had become a common method of accepting payments for small businesses. As the decade progressed, bigger businesses began to implement mobile credit card processing, too, and as of 2024, it’s an extremely popular method of accepting in-person payments.
What types of merchants need mobile credit card processing?
A mobile credit card processor offers a many benefits that appeal to a wide variety of businesses:
- The most obvious benefit of mobile credit card processing is its portability and flexibility. Merchants can accept payments anywhere with mobile credit card processing, eliminating the need for a fixed point-of-sale terminal.
- Convenience to your customers is another benefit. Customers enjoy the convenience of paying with their credit or debit cards anywhere and everywhere. That doesn’t just include food trucks, either. That can mean paying the plumber by credit card in their own house or paying for a sweater with the sales associate who helped them pick it out, rather than going to find the POS desk.
- Finally, mobile credit card processing solutions often have lower upfront costs compared to traditional POS systems, making them accessible to small businesses and startups.
So with that said, let’s take a look at what specific types of merchants need mobile credit card processing capabilities.
Food Trucks and Street Vendors
Picture the bustling streets of a food festival or the local farmer’s market. These vibrant scenes are teeming with eager customers craving delicious treats. For food trucks, street vendors, and mobile caterers, the ability to accept credit card payments on the spot is invaluable. With mobile credit card processing, they can serve customers swiftly and efficiently without being tethered to a fixed location.
Pop-Up Shops and Event Vendors
Pop-up shops, temporary retail spaces, and event vendors thrive on flexibility and spontaneity. Whether it’s a seasonal holiday market, a music festival, or a craft fair, these businesses need a payment solution that matches their dynamic nature. Mobile credit card processing allows them to set up shop anywhere, quickly process transactions, and capitalize on opportunities in diverse locations.
Service Professionals
From plumbers and electricians to tutors and personal trainers, service professionals often find themselves working on-site at clients’ homes or businesses. Mobile credit card processing enables them to collect same-day payments on the spot, eliminating the hassle of invoicing or waiting for checks. This not only improves cash flow but also enhances customer satisfaction by offering convenient payment options.
Freelancers and Small Businesses
Freelancers and small businesses across various industries can benefit from the versatility of mobile credit card processing. Whether it’s a photographer booking a photoshoot, a consultant delivering a presentation, or a hairstylist providing services at a client’s home, the ability to accept credit card payments on a mobile device streamlines the transaction process and fosters professionalism.
Tour Guides and Travel Services
Mobile credit card processing is indispensable for tour guides, transportation providers, and excursion operators. Whether leading guided tours, arranging airport transfers, or selling tickets for attractions, these businesses need a convenient way to accept payments from travelers on the go.
How to implement mobile credit card processing
Implementing mobile credit card processing involves several key steps, from selecting the right hardware and software to ensuring security and compliance. Overall, it’s a fairly straightforward process that any merchant should be able to accomplish.
1. Assess Your Needs and Goals
Before diving into the implementation process, it’s essential to assess your business’s specific needs and goals. Consider factors such as the volume of transactions, the mobility of your operations, and the types of payment methods you wish to accept. Understanding your requirements will help you choose the most suitable mobile credit card processing solution for your business.
2. Choose the Right Hardware and Software
Mobile payment processing is entirely dependent on hardware and software, so selecting the right tech stack is crucial for success. Begin by researching mobile card readers and terminals compatible with your mobile devices, such as smartphones or tablets. Consider factors such as connectivity options (e.g., Bluetooth, headphone jack), compatibility with your operating system, and security features.
Next, explore payment processing software or mobile applications that integrate seamlessly with your chosen hardware. Look for features such as real-time transaction processing, inventory management, reporting capabilities, and support for multiple payment methods. Popular mobile payment solutions include Square, PayPal Here, and Shopify POS.
3. Set Up a Merchant Account
To accept credit card payments, you’ll need to establish a merchant services account with a payment processor or acquiring bank. Research different merchant account providers and compare their fees, processing rates, contract terms, and customer support options. Choose a provider that offers transparent pricing and meets your business’s needs. Stax, for instance, offers fully transparent pricing and a wide range of capabilities able to accommodate your business’s needs now and as it grows.
During the application process, be prepared to provide detailed information about your business, including your legal entity type, industry, processing volume, and anticipated transaction volume to the payment processing company. The provider will review your application and may require additional documentation, such as business licenses, tax ID numbers, and financial statements.
4. Ensure Security and Compliance
Security is paramount when implementing mobile credit card processing to protect sensitive cardholder data and prevent fraud. Ensure that your chosen payment processing solution complies with industry standards and regulations, such as the Payment Card Industry Data Security Standard (PCI DSS) and takes EMV chip cards.
Implement security measures such as encryption, tokenization, and secure authentication protocols to safeguard payment transactions and customer information.
Bonus security tip: Train your staff on best practices for handling payment data securely and regularly update your software and hardware to address any security vulnerabilities.
5. Test and Train Staff
Before launching mobile credit card processing in your business, conduct thorough testing to ensure that your hardware and software function correctly. Test various scenarios, such as processing transactions, issuing refunds, and generating receipts, to identify and address any issues or discrepancies.
Additionally, provide comprehensive training to your staff on how to use the mobile credit card processing system effectively. Train them on processing payments, troubleshooting common issues, and adhering to security protocols. Empower your staff to answer customer questions confidently and provide assistance during the payment process.
6. Integrate with Your Business Operations
Ensure that your mobile payment solution integrates smoothly with other systems and processes, such as inventory management, customer relationship management (CRM), and accounting software.
Customize your mobile payment solution to reflect your brand identity and provide a seamless experience for customers. Consider implementing features such as digital receipts, loyalty programs, and customer engagement tools to enhance the overall customer experience and drive repeat business.
And with that, you’re up and running. Be prepared to adapt and evolve your mobile payment strategy as your business grows and customer preferences evolve. Explore new features, enhancements, and integrations offered by your payment processor or software provider to stay competitive and meet the evolving needs of your customers.
Mobile Credit Card Processing Solutions to Consider
Apple Pay/Google Wallet
Apple Pay and Google Wallet (sometimes called Google Pay) are applications on mobile phones that allow users to upload their credit card information to a virtual wallet. Users can either link their cards to apps (like Uber or Etsy) or tap the phone against NFC-enabled credit card terminals to make in-store payments.
NFC, or near field communication, is a technology present in most smartphones that allows contactless communication between devices. Certain countertop credit card terminals are equipped to accept contactless payments, which means customers can simply hold their phone close to the machine and authorize a transaction.
This technology is also available for Apple Watch users. The same concept applies, except instead of using their smartphones, customers must simply enable their Apple Wallet on their Apple Watch and hold their wrist in close proximity to the machine until the transaction is complete.
These types of payments have become very popular with consumers, with BI Intelligence predicting a swell in mobile credit card processing to $503 billion by the end of 2020. Keep in mind, Apple isn’t the only technology giant offering this service. In fact, in order to meet consumer demand, brands like Kohls, Walmart, Microsoft, Android, and others have released their own virtual wallet applications.
So if you own a brick-and-mortar location, make sure your credit card terminal is NFC enabled.
Mobile Browser Purchases
If your business has an eCommerce component, you understand the importance of a seamless online experience for your customers. Just as they can browse your shop from their desktops, your customers can shop from their mobile devices as well. Statistics show that more and more people are using their mobile internet browsers for everyday activities, including browsing the web and making purchases.
Not only is mobile internet browsing on the rise, but in-app purchases are an ever-increasing industry.
What does this mean for your business? Consumers love apps. You already know your website should be mobile responsive, but building an app to help customers along the buying process quickly and easily will give you that competitive edge.
Mobile Card Readers
Mobile card readers are great for business owners who don’t want to be tethered to a checkout counter. If you frequent trade shows, farmer’s markets, or festivals with your goods, having a way to accept credit cards on the go is essential. Your customers are starting to carry less and less cash, with 58% say even after the coronavirus pandemic is over, they still won’t go back to using cash. Losing a sale because of your cash-only policy is simply unacceptable in this day and age.
Typically, mobile card readers plug into your mobile device and connect with an application. Stax’ mobile app has the ability to type in payment information as well, giving business owners the option of swiping (or dipping) with a card reader or keying in payment information manually, giving you multiple ways to include mobile credit card processing in your business.
Mobile Optimized Online Shopping Carts
Online shopping carts are payment gateways that allow for the purchase of goods on a website. Consumers are using their mobile devices to browse the web more than ever, and this goes for eCommerce websites as well. Not only should your website be optimized for mobile viewing, but your payment experience should also be as well.
What does this mean? It means designing your website in such a way that forms are easy to navigate and use:
- Responsiveness: When users access your website from different-sized devices, the layout should respond and change to fit the size of the screen. If users need to pinch and pull the screen around to see all of your content, they are less likely to engage with your page the way you want them to.
- Simplicity: Often, all of the content you have on your website isn’t necessarily needed on your mobile version. Condensing sections down to tappable images or collapsed menus enhance the design and make it easier for your mobile users to quickly scan your site and find what they need. This is also true for payment forms. Make sure you are only asking for the information you critically need – reducing the number of field entries required to complete the transaction.
- User Experience: Overall, the user experience should be fast and seamless. Mobile users are on the go, meaning they don’t have time to battle with finicky forms and enter in multiple pages worth of information. Keep your customer in mind at all phases of the design process.
Mobile Invoicing Tools
When most people think “invoicing,” they think it’s time-consuming, administrative, boring, and complicated. This doesn’t have to be the case. The right mobile invoicing and billing tool can make your billing more interesting. Not only do these mobile softwares allow you to create invoices and send them from your mobile device, but you can check up on the status of your payments and even track sales data in most cases.
Top 5 Most Important Features for Mobile Payment Technology
In-Person Payments
You might assume that only retail businesses benefit from the ability to take mobile payments in person, but that isn’t always the case. The ability to swipe a card in person or key in payment information on the spot is valuable for not just retail and restaurant locations, but professional and vocational services as well. Think about an electrician in the field or a lawyer at a client meeting. Getting billing out of the way quickly and easily reduces stress and gets you paid faster.
Invoice Payments
Invoicing is a key feature function for payment software. If you’re paying for a mobile payments application and you don’t have the ability to draft, save, send, and receive payments from an invoice, you might want to start exploring better options.
Data Analytics
As you continue to take payments with your mobile device, you’re going to want the ability to track that data. Different solutions range in sophistication, but at the very least you’re going to want to be able to track sales volume, payment status, number of unique customers. These basic data points will help you gain a better understanding of your business and make more informed decisions.
Inventory Management
Not only is a cloud-based system more secure and reliable, but the ability to link your inventory with your payment system also automates your inventory tracking process. Some systems even have the ability to snap pictures of your products, making it easier than ever for your staff to find items and add them to orders.
Branding Capabilities
Your brand is your company’s identity. Make sure people remember it by having your branding elements – logo, colors, social media pages – featured at all stages of the buyer’s journey. Your mobile payment solution should give you the option to upload your logo, at the very least, but some allow you to customize your receipts and invoices even further.
When it comes to choosing the best mobile credit card solution for your business, you’ll have to evaluate all the factors above. You may want a whole mobile POS system or just a mobile card reader. You should also consider whether you currently or are planning on selling via eCommerce and therefore accepting online payments.
To learn more about Stax’ mobile payment solutions, request a custom quote today. We will be glad to answer any questions you may have and help you make use of our powerful all-in-one payments platform.
FAQs About Mobile Credit Card Processing
Q: What is mobile credit card processing?
Mobile credit card processing allows businesses to accept credit card payments using mobile devices such as smartphones or tablets. This is facilitated through mobile apps or attachments that can accept credit card swipes, taps, or chip inserts. It’s particularly useful for businesses on the go, such as food trucks, pop-up shops, or service providers who work at different locations.
Q: What is a mobile credit card processor?
A mobile credit card processor refers to the hardware and software that work together to enable mobile devices to accept credit card payments. The hardware might be a card reader that connects to a mobile phone or tablet, while the software is typically an app installed on the device that manages the transaction process.
Q: How does mobile payment processing work?
Mobile payment processing works by using a mobile device connected to a card reader or directly through an app that reads credit card information. The process involves connecting the card reader to a mobile device. Then, the customer either swipes, inserts, or taps their card on the reader. From there, the mobile app communicates with the payment processor to authorize the transaction.
Q: Can you take card payments without a card reader?
Yes, you can take card payments without a card reader by manually entering the card details into a mobile payment app. You can also use virtual terminal, which allows you to process payments over the phone or online by entering the customer’s credit card details into a secure web interface.
