Startups Leverage Mobile Payments into Profits and Success

When he started collecting mobile credit card payments using his wife’s iPad, Josh Lattimer increased his Car Care sales substantially. Now, reports TimesFreePress, Lattimer processes 90 percent of his outside sales payments through credit or debit cards. Whether you’ve just bought an ice cream truck or are trying to get a security company started, accepting mobile credit card payments is essential for a successful beginning. For many startups, mobile payment processing is the key to their success.

Benefits of Plastic

Most of the time, your customers don’t have cash in their pockets, and accepting personal checks is a risk you shouldn’t have to take. With a simple credit card reader for your phone, you can accept plastic anywhere, and this gives the average startup a chance to boost their bottom line without changing their business model, increasing their inventory, or wasting money on employee training.

Many consumers track their expenses by using a particular card, and they are more likely to buy your product if they can use that card. As a bonus, you’ll find that tracking your income becomes a lot easier when you process credit card payments instead of cash. Some apps like Mint even allow you to sync the income you receive from your credit card processor into an income and expense report.

Your average purchase price should also grow when you make paying easy for your clients. According to Intuit.com, consumers are more likely to make impulse purchases if they don’t have to pay cash, and they tend to spend more when using plastic. Plastic also increases cash flow, as you never have to wait for old invoices to get paid.

Cost versus Benefits

Unfortunately, it isn’t free for a startup to accept mobile payments. But many organizations offer low cost services and reasonable rates for startups. For instance, a business owner who uses Intuit Mobile Payment Processing could opt to pay a small monthly fee of $12.95 per month with a swipe rate of $1.75 percent per transaction. Startups who are unsure of their potential sales and don’t want to commit to the monthly fee can get that fee waived and pay an extra point per sales transaction.

Coin

Other startups like Coin are taking advantage of the growing trend toward mobile payments. Using Coin, consumers can download all of their cards to a single piece of plastic. Drawing on credit card info that is stored in your phone, the Coin card can become your store card, your bank debit card, or even your loyalty card. Best of all, there’s no reason to be worried about leaving your card anywhere as the Coin app sends you an alert any time you leave the card lying around. The app is scheduled to debut during the summer of 2014, according to Forbes, and it should cost around $100.

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