Mobile payments have become more than just a convenient alternative to traditional payment methods. They have ushered in a wave of exciting side effects that are gaining momentum among target consumers. As technology continues to evolve and reshape the way we interact with financial transactions, these side effects are transforming the consumer experience in unexpected ways.
From enhanced security and personalized offers to seamless integration and financial empowerment, 18 Forbes Finance Council members explain how these side effects are reshaping consumer behavior and redefining the future of commerce.
1. Having New Opportunities To Cross-Sell And Upsell
Drivers of adoption of mobile payments (security, convenience, retail acceptance) are accelerating the use of in-app, online and at the branch. Perhaps the most exciting and unintended consequence of this is more customers digitally engaging with their bank, which in turn is creating opportunities for banks to cross-sell, upsell and reward loyalty. It’s only a matter of time. – Fiona Roach Canning, Pollinate
2. Saving Time Doing Taxes
A great way to save time and ensure your federal tax payments are quickly and correctly processed is to use IRS2Go, the IRS’s official mobile app! Timely payments help avoid interest and penalties from accruing. Use this app to check on your tax refunds, get tax preparation assistance and sign up for IRS Tax Tips! I also recommend electronically paying your state taxes and saving confirmations. – Robbin Caruso, Prager Metis CPAs, LLC
3. Accepting ACH Electronic Payments
On the fundraising side of the business, it’s exciting because we’ll soon be able to accept ACH (Automated Clearing House) electronic payments which will expedite the entire process and practically eliminate wiring fees. Not to mention it would allow investors to sidestep the cumbersome in-person process of going into a bank. – David Van Horn, PPR Capital Management
4. Increasing Consumer Data Insights
One key benefit in mobile payments that is gaining momentum is increased data insights for the providers. Mobile payments can provide banks and financial services organizations with valuable data insights into customer spending habits, preferences and behavior. This data can be used to inform product development, predict buying behavior, marketing strategies and other business decisions. – Araya Solomon, Luxoft, a DXC Technology Company
5. Reaching A New Demographic
Embrace mobile payments even if you think your customer demographic is too old for it. Mobile payments are growing rapidly throughout all demographics and are the primary payment source for most young adults and will be the dominant payment source for the generations to come. Think of it as what having a website was like 20 years ago, no small businesses had them and today all businesses have a website. – Joseph Orseno, Tiltify
6. Speeding Up Checkout With Contactless Payments
One notable side effect of mobile payments’ increasing popularity is the rise of contactless payments, fueling a more efficient and hassle-free shopping experience. This has led to improved customer satisfaction, heightened security measures and better data collection opportunities for businesses to personalize their offerings. – Angelo Ciaramello, The Funded Trader
7. Paying Directly From Your Phone
Once it’s set up, any digital payment option is faster and easier than traditional payment methods like checks. Gone are the days of needing to carry cash or your checkbook; now customers can pay directly from a phone. The demand we’re seeing for instant gratification in money movement is going to lead to improved services for consumers and small businesses alike in the next year. – Nick Chandi, ForwardAI
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8. Connecting More With Family
Remember when even a simple financial transaction meant a bank visit and waiting in line? Our target market of millennial parents is busy juggling work and kids. Mobile payments transform how they manage two precious commodities–their time and their money! Parents make transactions from anywhere, at any time, using their mobile devices. That means spending more quality time with their children. – Ksenia Yudina, UNest
9. Making Payments Anywhere, Anytime
One exciting side effect is the ability to make quick, convenient and secure transactions from anywhere, anytime. Mobile payments enable consumers to make purchases, transfer money and pay bills using their smartphones or other mobile devices. This level of convenience has become increasingly important as more people lead busy and mobile lifestyles. People no longer have to carry cash or cards. – Sean Frank, Cloud Equity Group
10. Increasing Financial Inclusion And Security
In emerging markets like Mexico, mobile payments enhance safety and security through fingerprint, facial recognition and data science. These technologies do a better job than traditional systems to ensure that only authorized users can access their accounts. This revolutionizes financial inclusion for low-income households, who are historically hindered by theft and fraud. – Daniele Viappiani, GC1 Ventures
11. Scheduling Recurring Payments
The easier it is for the consumer to purchase from you, the better. The rise of mobile payments, and the ability to schedule recurring payments, has made purchasing easier for consumers. For the business owner, mobile payments and e-commerce have enabled them to reach a larger segment of the market. – Justin Goodbread, WealthSource Partners, LLC
12. Paying Bills Easier And Faster
Most of our clients don’t have a lot of time or focus for little tasks that are important to get done but are mundane and boring, like paying bills. Mobile payment systems often come with a feature that outweighs the value of mobility–scheduling payments. Clients set up a repeatable payment schedule one time and then get a notification on their phone that a bill has been paid every month. Sweet! – Todd Sixt, Strait & Sound Wealth Management LLC
13. Raising The Close Rate
Mobile payments have significantly reduced the friction of a sale for many of our clients. It’s exciting since this raises the close rate, and allows resources to be spent on adding more customers to the top of the funnel and just making the product better. – Aaron Spool, Eventus Advisory Group, LLC
14. Helping Small Businesses Grow
Mobile payments have not only made transactions faster and more secure but have also helped small businesses grow by enabling them to reach a wider customer base. The ease of mobile payments has led to increased impulse purchases and higher overall sales. – Jared Weitz, United Capital Source Inc.
15. Creating Smart Buttons On Websites
Payment processing companies have recently been getting into something called smart buttons. If a payment processor has more than one wallet or payment method to offer they are trying to identify which of the wallet or payment method the end users are using on their mobile device so that they only show them the preferred wallet button on an e-commerce site when the users try to make a purchase. – Abhinav Swarup, Zeus Living
16. Transferring Money To Others Quickly
17. Incorporating Texts With Mobile Payments
The key here is to make it so your customers and clients have as many ways to pay you as possible. Mobile is just another one of those ways. The bottom line is that text messages are seen nearly ten times more than emails. If you can incorporate texts with mobile payment links this can increase your cash flow by making it easier for your customer to pay you regardless of where they are. – Leo Kanell, 7 Figures Funding
18. Offering Increased Security
Mobile payments offer a high level of convenience for consumers, allowing them to make purchases quickly and easily using their mobile devices. They also offer better security. Mobile payments are often more secure than traditional payment methods. Mobile payments can be more cost-effective for merchants compared to traditional payment methods. – Cynthia Dalagelis, Amalgamated Bank
Read More Our target market of millennial parents is busy juggling work and kids. Mobile payments transform how they manage two precious commodities–their time and their money!