Studies Show Consumers are Confused about Mobile Payment Technology

Mobile payment technology is growing by leaps and bounds. Each week, there seems to be another company offering the hardware small business owners need to accept mobile payments. There’s just one problem. Many consumers are confused about the technology. This can make it hard for businesses to make the sell, even though they have the means to do so. The good news is as the technology becomes more prevalent, consumers are apt to be more accepting and understanding of mobile payments. Until then, there are things you can do to ease the confusion.

Why Are Consumers Confused?

It’s easy to see why customers are confused, maybe even wary, of mobile payment technology. Step back 15 years ago and you’d see the same look of confusion on the faces of those considering online payments. It’s only natural for people to be concerned about making payments in a new way. Throw in the fact that identity theft is more common than ever and you can understand why it may be a hard sell for some customers. Then there’s the simple fact of technology confusion. People that aren’t familiar with technology, may wonder how you can use a smartphone to accept a credit card payment. Some may even feel that you’re scamming them and just trying to steal their card information.

Are Customers Excited About Mobile Payments?

While a number of consumers are confused about how mobile payments work, many are excited about the possibility of being able to pay for anything with their credit or debit card. Those that usually carry little cash on them often have to pull money out of their accounts before shopping in certain stores and at yard sales or flea markets. With mobile payment technology, customers can shop anywhere the service is offered.

How Can Businesses Help Ease the Confusion?

First things first. Understand the technology you use well enough to explain it to consumers. If a customer asks how mobile payments work, they will not be thrilled to hear that you don’t know. You can also print out flier to hang around the store that explain how mobile payments work. If you have a company website or Facebook page, create a video that gives your customers more information.
Mobile payments are a welcome addition to the business world, especially for businesses that are truly mobile, such as food trucks. The ability to take credit or debit card payments from any location a cell phone signal is available can greatly boost sales and you can find out more here. However, you need to be prepared for consumers that don’t understand the technology and need a thorough explanation to feel safe about using mobile payments.