What Small Business Owners Need to Know About Mobile Wallets

small business owners mobile wallets guide

In a relatively short span of time, people have come to rely on their smartphones for just about anything. They can be used for navigation, mobile banking, managing a business, and even for making payments. 

In order to make payments using a smartphone, you will need to download a “mobile wallet” app that basically functions like a physical wallet. From your mobile wallet you can have access to your credit and debit cards, store loyalty cards, personal identification cards, and more. All you need to do is input the necessary information and give the app access to your banking accounts. 

New Ways To Pay 

Small business owners need to be able to accommodate this new method of payment, especially as it becomes more popular. Merchant service providers like Swift Payments offer solutions like NFC-ready terminals for businesses that want the ability to process payments from mobile wallets. 

NFC (or near-field communications) allows two different devices to wirelessly transfer data as long as they are placed near each other. This allows a guest to “tap” their phone onto a terminal in order to make a payment, much like you would with a contactless credit card. 

Of course, they will first need to access their payment options in order to prompt the ability to tap and pay. This can be done by entering a password or using fingerprint protection. With this security feature a person can ensure that they don’t make payments accidently, and also that no one else can use their device to make payments. 

More Secure Than You Think 

Mobile wallets offer quick and convenient payment options that benefit both customers and business owners. This is what makes them so popular despite the usual level of scrutiny that comes with sharing your personal information online, especially when it is in the hands of a private company. 

That being said, many banks are now offering mobile wallets for people who hold accounts with them, so it’s not as risky as one may think. There’s also the fact that smartphones can be password protected, so if you lose your phone there’s no risk of a person being able to access your mobile wallet. 

In contrast, losing a physical wallet gives thieves an opportunity to use your credit and debit cards before you are able to report them stolen. They’ll also have easy access to your driver’s licence which contains important personal details. 

Fraud Prevention 

Mobile wallets are actually great for business owners because they help prevent fraud. This is because many mobile wallet applications do not actually store credit card data; instead, they assign an encrypted code to a credit card number so it can be stored securely. In this way, mobile wallets protect both you and your customers from fraudulent transactions. 

Don’t Get Left Behind 

If you want to stay competitive as a small business owner, you’ll need to be able to keep up with the latest technology. That’s why it’s important to know about mobile wallets and how they will affect your business and how you process transactions.

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