What are Payment Apps?
Have you ever wanted to pay for something, but didn't have your wallet on you? That's when a payment app comes in handy. With a payment app, you can keep your credit card information on file and just use your phone to pay for items. In the digital era, small businesses sometimes accept this form of payment to meet the needs of an evolving customer base.
Payment apps are a convenient way to make payments and send money to friends. If you're the one paying, the app will typically require your debit card number and routing number. To receive money, you'll need to use your debit card and provide your bank account number and the bank's routing number. Some apps also require a phone number.
Many restaurants accept payment apps like Apple Pay or Google Pay, especially if a customer order online. Customers prefer this payment method because it reduces the risk associated with lost credit cards. There's also no need to insert a card into a terminal, which makes paying for items much easier. Forward-thinking establishments benefit from accepting payment apps because it enhances brands and increases revenue.
Why are Payment Apps Important?
Older millennials probably remember when paying for something online wasn't as simple as it is now. You had to first find your credit card. Then you had to input the number, the security code, and maybe even an address. Inside a restaurant or store, you have to dig through a wallet to retrieve the right card. And maybe you forgot cash, and the establishment is cash only. When demand for convenience and speedy service was desired, the digital wallet came to save the day.
We now have options such as Autofill or payment apps, which ensure payment processing is simple and quick. Payment apps don't just benefit the spender, however. Restaurants and retailers can bring in a lot more profit when they accept various digital payment options. Cash is slowly dying, and expecting customers to hold on to it at all times is unreasonable.
Accepting payment apps will increase the customer base, maximize online orders, improve customer spend, and generate more revenue. This is all crucial in a time where restaurants are struggling to stay profitable. Read ahead for some other reasons why payment apps are important to business owners.
Payment apps for the 21st century
Intelligent, cloud-based reporting meets enterprise-class reliability
1. Convenient for Customers
It's never been easier to pay for delivery or dine-in service than now. With options like Apple Pay or Google Pay, customers can leave their cards and cash at home. We can take pictures with our phones, watch movies from our phones, and even work from our phones. Why shouldn't we be able to pay for items with our phones? Restaurants can capitalize on smartphone culture and improve the customer experience when they accept mobile wallets.
Stats on the Customer Experience and Tech:
- 86% of customers are willing to pay more for great customer service
- In 2020, customer experience took over price and product as the key brand differentiator
- 66% of customers say a frustrating mobile experience impacts their reputation of a brand
- 52% of all internet traffic comes from smartphones, with desktop usage on a trending decline
2. Prioritizes Data Security
Payment apps incorporate data security measures such as Near-Field communication. This allows customers to either tap or wave at a point of sale system to make a payment. Furthermore, apps use encryption and protected codes to minimize any hacking or security threats.
The restaurant never has access to a customer's actual card number. Instead, the payment app only assigns a random number for each item purchased. If a hacker somehow manages to get past all of the encryptions, they still can't find the card number. Restaurants can rest assured that customer data is secure, and customers will feel better about making purchases.
3. Improves Speed of Service
It's super easy for customers to make mobile payments. There are only about two or three clicks during the checkout process. Restaurants that accept mobile payments can train their employees to walk customers through the process.
It's also much faster for customers ordering online to use payment apps than if they call on the phone. This improves the speed of service, broadens the customer base, and is great for a restaurant's brand. Speedier service means higher table turnover and increased profits.
Why payment apps?
Customers need to be able to make purchases conveniently
4. Simpler Bookkeeping
The best payment apps are fairly new. This is clear to anyone who can see how much more convenient they are. It's much simpler to gather customer data, track customer preferences, and ensure accounts have access to payment records.
Furthermore, there are no annoying banking fees that come with cash deposits or credit card transactions. While there are some fees associated with payment apps, they are much less expensive. This will help save money, avoid errors, and streamline tasks for the accounting department.
Stats on Accounting Processes:
- 94% of accountants have adopted cloud-based accounting programs and 67% of accountants prefer cloud accounting
- 60% of small business owners struggle to handle accounting functions
- 64% of small business owners utilize their accounting software on a frequent basis
- Automated accounting systems pay for themselves within the first 6-18 months
5. Expand Customer Loyalty Programs
Restaurants can use payment apps to customize coupons and marketing in alignment with customer preferences. But how? First, there are location-based services integrated with payment apps. Restaurants can then offer the right menu options at the right location to a close-by customer. This will improve how relevant promotion is to customers and increase the chance they use the deals.
Secondly, owners can customize loyalty programs to offer items that customers want. They can do this by accurately tracking and reporting historical customer sales data. This will increase profits and improve customer satisfaction, which creates a great competitive edge.
Payment apps trends to come
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