The Green Sheet Online Edition
July 22, 2013 • Issue 13:07:02
Selling merchants on mobile payments
I'm new to the industry and have found that some merchants I approach are eager to begin accepting mobile payments, but others don't appear to be interested at all. I see mobile as the wave of the future. I'd like to do a better job of convincing skeptical merchants of the advantages of mobile. What would you say are the main advantages to merchants in going mobile?
Merchant Level Salesperson
One factor merchants are likely to find compelling is that multiple studies indicate a mobile revolution is indeed occurring, and it's likely merchants who don't have the capacity to accept mobile payments will at some point fall behind those who do, and thus lose market share. And it is likely the small to midsize merchant sector is already lagging. For an informative analysis of this, see "Get ready for the mobile revolution" by Michael Gavin, The Green Sheet, May 13, 2013,issue 13:05:01.
Some advantages that might also pique merchants' immediate interest include:
- Recent research has indicated that shoppers who have mobile payment options available to them are the most likely to make impulse purchases.
- Mobile functionality makes it easy for merchants to accept payments while on the go, from just about any location, which opens up new sales opportunities to merchants.
- Sales can be wrapped up on the spot, in a manner that includes swift payment to merchants and automatic email receipt generation.
- It's possible to add mobile functionality at low cost.
Of course, you'll need to explain to merchants how they can enjoy these advantages, based on the unique benefits of the mobile products and support services you are able to offer. It's likely your ISO will be able to inform you of additional benefits, as well.
Also, a good resource for background information on this topic is "Mobile payments 2013" - Parts 1 and 2, also published by The Green Sheet on March 25 (issue 13:03:02) and April 18, 2013 (issue 13:04:01), respectively. And if you search for the phrase "mobile payments" using our website's Search function, a host of relevant articles will appear.
Best of luck in joining the mobile revolution.
In aid of AID
I am researching EMV and came across an article in The Green Sheet that mentioned the term debit AID. What is this and why should I care?
Bright City Merchant Services
For the introduction of the Europay/MasterCard/Visa standard in the United States, POS terminals must have a way to route each debit card transaction over two networks. So a debit application identifier (AID) is an application that resides on a chip inside a terminal that manages the routing choices. It's important to know about it because the two-network mandate is a complication imposed on the industry by the Durbin Amendment to the Dodd-Frank Act of 2010. So buyer beware when supporting legislators with little understanding of economics.
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