Mobile Media Transactions Market
In the current study Local Commerce Monitor, which is run by advertising consultants from BIA/Kelsey, it was revealed that small and medium-sized businesses (SMBs), have been making wider use of mobile payment systems.
40 percent are currently accepting payments through a point-of-sale system that involves smart devices (usually a tablet or a smartphone) that have been enabled with a mobile credit card reader. This number represents a 12% jump from the numbers of the previous year. In the same survey, another 16 percent said they are planning to employ the same technology within the next year. Thus, if the statistics hold true, by the following year, more than half of all SMBs will be accepting payment through some sort of point-of-sale system enabled by mobile media transactions.
Today’s business owners
Today’s business owners would do well to delve into the fast emerging world of mobile media transactions now rather than later. With today’s market growing more and more competitive, a business cannot afford to lose a potential customer just because the business hasn’t enabled itself to accept mobile media transactions.
Clearly, getting a head start on mobile media transactions can prove to be a beneficial edge that business owners need to gain an advantage over their competitors.
Unfortunately, some business owners, most especially those who are not very comfortable with emerging technologies, are intimidated by the thought of enabling their businesses to accept mobile media transactions because this involves adding a new piece of electronic equipment to their purchasing systems. Such unfounded fears are a pity since these business owners are surrendering an important competitive edge to their co-market players without understanding that enabling a business to accept mobile media transactions is actually quite simple and pain-free. And in this day and age, choosing to remain behind could be harmful, if not fatal, to a business, especially a small business.
All business owners have to do to get started is to survey the options available to them. Currently, PayPal and Square are dominating the mobile media transactions market, but these are not the only two that a business owner can choose from. The truth is, the best mobile media transaction provider depends on the types of transactions that a business is likely to have through mobile media:
Breadcrumb, which is handled by Groupon, is best for businesses that will
(a) handle many transactions,
(b) have many single transactions, which are larger than $400,
(c) have less than five-digit total sales figures monthly,
(d) have more than six-digit total sales figures monthly,
(e) have an average transaction rate of over $26, (f) or have an average transaction rate of between $17 – $26 and do not accept payments from American Express.
Paypal is best for businesses that
(a) have average transactions of less than five figures per month and have an average transaction rate of below $17, or
(b) have an average transaction rate below $26 and accept American Express card payments.
Square is best for businesses that
(a) have average transactions of between five to six digit sales each month, and
(b) have a limited number of transactions over $400, and
(c) have a limited number of transactions.
Furthermore, in general, Dwolla and American Express are generally not recommended. Dwolla requires both the merchant and the customer to have a registered account, while American Express has generally higher rates.
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It is thus clear that there is a mobile media transaction provider that can meet any type of business owner’s needs. All that’s left for a business owner to decide is whether he’ll jump into the mobile media transaction fray, or of he’ll simply watch as his competitors take the lead and gain an edge.