Cellum Insights

Small businesses can be the first to make the m-payment switch

Small businesses could be the catalyst of mobile payments worldwide. One simple reason is that m-payments cost far less than any other payment method.

Market experts agree that in the next few years smaller businesses may be the drivers of mobile payments around the world. Among the reasons that are most often brought up – regardless of geographical location – is that smaller companies really need to take care of their expenses, i.e. they have to save money wherever possible.

Payments and the handling of money is a quite sensitive and more expensive part of the business. Cash management (storage, transport) is also a costly, labor-intensive task, but in many cases the technology needed for card acceptance is overpriced.

The added convenience of mobile payments won’t inspire consumers to switch from credit cards in countries where cards are already widely used, industry observers said a few weeks ago at the Mobile Commerce World conference in San Francisco. But special offers and services could attract consumers, and small businesses disappointed with current payment systems may be among the first to make the switch, they said.

The cost of payments is too high for most merchants. […] It’s really not fair, in my opinion,” said Sean Harper, Director of Product Management for Groupon Payments – according to infoworld.com. “It’s true that small businesses typically pay higher fees than big chains, just as they pay more for commodities, because they don’t have the negotiating power of retail giants,” he added.
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So small businesses need to be encouraged to accept mobile payments. Mobile wallet provider Cellum has realized this long ago, making sure its MasterCard Mobile app can be used to pay at a multitude of merchants of all types, shapes and sizes. The app allows thousands of small businesses to issue mobile payment-ready invoices. Also, promotional campaigns are periodically held to incentivize customers to use the service, with demonstrably increased adoption rates during each campaign.