Small businesses are constantly looking for ways to boost growth and profitability. With the development of smartphones, one simple way to achieve better growth and profitability may be through mobile payments. Forbes reported that companies that accept mobile payments are more profitable and grow faster than companies that do not. Also, Forbes also cited a survey of 2,300 companies and consumers which found that businesses that had annual revenue growth of 11% or more were more likely to have a mobile app that supports payments and purchases versus slower-growing businesses.
Furthermore, the survey also found that people think they will be using a lot less cash in the future. According to the survey, consumers believe their use of cash will drop by over 30% while business executives think it will only drop by 5%. This big perceived difference in how fast cash use is going to drop could lead some businesses to be left behind if they do not have the right infrastructure to handle an increased volume in credit card payments compared to cash payments.
Another important “key lesson” from the survey is retailers profit when they remove any barriers that customers may encounter during the buying process. Internationally, developing countries are seeing faster growth in mobile payments with 58% of consumers making a mobile payment a week compared to only 39% in developed countries.
If your company has failed to meet growth and profitability expectations, then you may need to take a hard look if your losing out on the mobile payment market. Adding mobile payments can help reduce a “barrier to transactions” that may be keeping your business from growing to its full potential this year.