For many companies, getting a small business loan can be a way to access the capital necessary to move forward on big projects or to finally purchase new machinery. On the other hand, businesses can free up money internally by making a few key changes to their operations, such as introducing mobile payment options. With more ways for customers to conduct transactions through, revenues may rise, thus creating the capital firms need to advance their business plans.
This method of organically creating more working capital for a company can be an advantageous practice for smaller businesses looking to expand. Payments through smartphone apps are a key way for small businesses to improve their services and offerings.
Open up new revenue streams
For companies that conduct business with a variety of merchants, contractors and customers, it’s important that all payments are being made in a timely manner. However, some small businesses rely on cash-only operations under certain circumstances, which may hinder just how flexible a business is. By limiting payment options to just cash, or even credit cards, companies may be unintentionally denying possible sources of revenue.
Mobile payments are convenient and work at the touch of a button, which is crucial for businesses that rely on consistent inflows of capital, particularly during slow seasons.
Create a rewards program for customers
To get customers to return back to a store, businesses have long employed rewards programs. These incentives range from cheaper services to discounts on goods. Not only does this practice encourage repeat customers but it also enhances the goals of businesses. For years, these programs were tailored around member rewards cards or even punch cards that indicated when customers were eligible for discounts.
But with mobile payment options, phones can keep track of reward points and personalized customer information. This eliminates the need for customers to carry around a physical rewards card and allows businesses to instantly access customer data. This approach can help advance loyalty programs, leading to higher sales.
Reduce expensive credit card processing fees
Small businesses in today’s environment are hard pressed to keep up operations without the use of credit card payment options. However, banks charge fees for these options, which can put businesses in a compromising position where they must pay money to make money.
With mobile payments, some apps are actually free for use while others charge minimal processing fees. This provides an easy way for companies to cut operation costs and find the most efficient way to conduct business with customers.
Streamline online business transactions
Because mobile payments rely on the online connection of smartphones, it could be the perfect opportunity to coordinate all online services to craft a more effective payment system. For instance, companies can link their websites back to a certain app, allowing customers to download and use the app for transactions. Also, it could be beneficial for businesses to upgrade their websites to include an option that shows up well on a smartphone screen.
This approach aligns all digital media designs and makes it easier for customers to navigate online platforms, potentially leading to more transactions. Plus, adding mobile payment options is fairly inexpensive and easy to do, which makes it a great addition for small businesses that don’t necessarily have the funding or technical knowledge to overhaul their online offerings.
Keep tabs on inventory and customer behaviors
Because future transactions will occur through smartphones, businesses can collect and store the data being transmitted and use it to their advantage. As opposed to relying upon manual notation or inventory tracking, the app completes these functions itself. This saves time and allows businesses to follow consumer trends and know just how much merchandise they need on hand at any given moment.
Further, data can be used to stay ahead of top-selling products and which services are in high demand in particular regions. The result is that companies are more efficient and adaptable when it comes to meeting the demands of customers.
Implementing mobile payment options is a necessary step forward for businesses looking to gain a competitive edge in the marketplace. With the additional revenue coming in from mobile payments, small businesses have more capital to improve other aspects of their company as well.