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How Can an App for Card Payments Benefit my Business?

It’s likely you have noticed more and more people paying for items with their phones. It’s pretty practical: no more scrambling for your wallet, less time waiting in a queue and no need to insert any PIN codes on a dirty card machine! The good news is that now thanks to mobile payment apps, you […]

app for card payments

It’s likely you have noticed more and more people paying for items with their phones. It’s pretty practical: no more scrambling for your wallet, less time waiting in a queue and no need to insert any PIN codes on a dirty card machine!

The good news is that now thanks to mobile payment apps, you can also accept payments with your phone. That means you don’t need to transport clunky hardware, get paid immediately and your customer can pay with their phone. We think it’s a bit of a revolution, and this article explains why. 👇

First, what are mobile card payment apps exactly? A mobile payment app allows sole traders who provide home services – such as electricians, plumbers, gardeners, window cleaners or hairdressers – to get paid upfront by credit or debit card. This is a modern alternative to conventional payment methods, like cash, cheque or sending an invoice and waiting to be paid at a later date. Some apps use systems such as QR codes while others use payment links to complete the transfer – but in both cases, only a mobile phone is needed. 

Here are a few reasons why it’s worth taking the leap to a mobile card payment system. 

Offers convenience

These days people don’t want the hassle of keeping cash in their wallets or reminding themselves to pay invoices by the due date. Mobile card payment systems allow transactions to happen instantaneously and only require mobile phones. 

You’ve finished a job and it’s time to sort out payment. Your customer pulls out a card and then realises they need to run to the ATM to take out cash. Lucky for you, you’ve just set up a mobile card payment system and they now have the option of paying by credit card. They sigh with relief and are incredibly happy to pay you on the spot. 

But it doesn’t stop there: not only can they now pay by card, but they don’t need to download an extra app or complete some sort of identity verification. With a mobile payment system that uses QR codes, customers just need to scan the code, input their card details and complete the payment. That’s what we call a seamless customer experience. 😉

Improves cash flow 

As a small business owner, it’s likely you’re waiting days or even weeks to collect payments. This can cause cash flow issues and make financial management that much trickier. A mobile card payment app fixes this by ensuring payment is made right then and there for your product or service. Money is received within the next few hours and you don’t need to worry about chasing up late payments or bounced cheques. 

Operating in positive cash flow means less stress paying for expenses and keeping things running smoothly. It allows you to look at hiring new employees and growing your business instead of constantly playing catch up. If scaling up is part of your future plans, then taking mobile card payments as a small business is the first step to help you get where you want to be.

Increases profit

A mobile card payment system not only improves your cash flow but it can also increase profit. Speeding up the payment process allows you to schedule more appointments in the same period of time, which directly impacts your profit margin. A smooth, seamless payment experience also builds trust and repeat business, and repeat customers spend more than new customers (a 5% increase in customer retention can boost profits by 95%).

Mobile payments are also a lot cheaper than other types of payments. Card payments usually charge a set up fee, a delivery fee, a monthly rental fee and a lot more, which can severely impact your bottom line. With mobile payment providers such as Pomelo Pay, you just pay 1.49% per transaction – no contracts, monthly fees or hardware needed. 

Improves security 

Even though mobile card payment apps have been around for a while now, many customers believe that mobile payments are somehow less secure than card payments or cash. 

In fact, the opposite is true! Using a mobile card app is actually more secure than carrying and paying with a physical card. This is because mobile payments are encrypted and every transaction is tokenised, which means the customer’s card details are never shared or stored with the merchant or payment provider.  

What options do I have for mobile card payment apps?

If a mobile card payment app sounds like something you would be interested in for your business, you have a couple of main options for setting one up. 

App-based card reader: With an app-based card reader, you need to purchase a separate card terminal. At the point of sale, you will need to input the purchase amount into a separate app and your customer will swipe or tap their card on the card reader. While app-based card readers are popular on-the-go payment systems used by small businesses, the main downside is that you still need to pay and carry around a separate card reader.

Mobile-only QR codes: An easier solution is to turn your mobile phone into a point of sale (POS) terminal. By using a system such as Pomelo Pay, all you need to do is download the app on your phone and you can immediately start accepting payments. 

How does it work? The app creates a unique QR code for your company. Every time you want to receive a payment, your customer just needs to scan your QR code with their smartphone camera. A push notification will appear and take them through to a separate payment screen. Then they just need to input their card details through the secure online system, and payment is completed on the spot. 

We do believe that using an app for card payments is revolutionary for small business owners: the less time you spend managing payments is more time spent on your business and customers. With Pomelo Pay, you can turn your phone into a Point of Sale and start accepting payments anywhere and at any time – and all you need to get started with is an app!

Written by Araminta Robertson