How mobile payments can transform your business

Consumers still are slow to adopt mobile payments, despite efforts by companies such as Apple, Google and Samsung to generate traction for their mobile payment platforms.

But don’t let the underwhelming ramp-up deceive you; mobile payments will eventually reach a tipping point, just as online purchasing did years ago. And the enterprises that will most effectively leverage mobile payments to build their businesses will be the ones who plan and develop a mobile payments strategy.

Over at Forbes, contributor Eduard Calvo explains how mobile payments can help boost an enterprise’s business — above and beyond making it easier to collect payment from customers. One business benefit to mobile payments is increased productivity. Calvo uses Starbucks order-and-pay app as an example, citing five distinct productivity-related perks:

  • Fast processing of payments results in more customers served per hour
  • Shorter waits increase customer satisfaction
  • Mobile payment apps collect data that can be used to personalize marketing
  • Prepaid nature of Starbucks app eases working capital requirements
  • Enhanced customer loyalty and brand value

One of the reasons the Starbucks app has been so successful is that it’s well-designed. Calvo lists three key elements to building a “killer” mobile payment app, though I’ll split them into four:

  1. The app must solve a business problem
  2. It also must offer genuine value for users
  3. The technology/platform must strike the right balance between usability and complexity
  4. Business model uncertainties must be removed. “To gain traction quickly,” Calvo writes, “the responsibilities and remunerations of all the players in the value chain need to be clearly defined.”

Notice that three of the four items above are about business, and only one is directly about technology. That’s because building the business case must always precede technology adoption. Otherwise you’re just playing with expensive toys.

RELATED LINKS

The mobile revolution has only just begun

Retailers need much more than faster transactions

Operational efficiency: A must-have for digital retail

Comments

  1. Tony Puerto says:

    Nice write up. I get the benefits but not clear where/how the business “transformation” happens as implied by the title. By the way, maybe I am misreading but the first two paragraphs seem to be a paradox “slow to adopt vs overwhelming ramp up?

    Like

  2. Jehad Fahour says:

    key elements to building a “killer” mobile app makes sense particularly it is about the business and not only the technology

    Like

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