How to accept mobile payments: A complete guide for small businesses

If you’re anything like me, you’ve probably headed out for something and found yourself taking a quick detour to your favorite coffee shop with only your phone in hand. But then, you realize—you forgot your wallet. Luckily for us, those moments of turning back just to grab your card are a thing of the past, thanks to mobile payments.

Over 53% of consumers prefer digital wallets over traditional payment methods in 2023. As smartphones become an integral part of our daily lives, mobile payments like Apple Pay and Google Pay have made transactions more secure, efficient, and convenient. For small business owners, accepting mobile payments isn’t just a matter of convenience—it can boost customer satisfaction and help future-proof your business. In this guide, we’ll explore how mobile payments work and how your business can start accepting them with Helcim.

Introduction to mobile payments

Mobile payments have revolutionized the way we make transactions, offering a convenient, secure, and efficient way to pay for goods and services. With the rise of mobile devices, mobile payments have become increasingly popular, allowing users to make payments using their smartphones, tablets, or smartwatches. Whether you’re grabbing a coffee or shopping online, mobile payments streamline the process, making it faster and more secure. Mobile payments can be made using various methods, including credit cards, debit cards, bank transfers, and digital wallets like Apple Pay, Google Pay, and Samsung Pay. These digital wallets store your payment information securely, allowing you to make purchases with just a tap or a scan. In this section, we will explore the basics of mobile payments, their benefits, and how they work.

What is a mobile payment?

Mobile payment refers to transactions made using a smartphone, or tablet, rather than traditional methods like cash or physical credit cards. Customers can store their payment information in digital wallets like Apple Pay, Google Pay, or Samsung Pay and then use their device to make purchases in-store or online. By tapping their phone on a contactless payment device like a Smart Terminal or by scanning a QR code, customers can make secure payments without touching cash or handing over a card.

What are the different types of mobile payments?

There are several mobile payment platforms available, but the most popular ones include:

• NFC payments (Near Field Communication): Customers can tap their smartphones or wearables to an NFC-enabled terminal for contactless payments. This includes services like Apple Pay, Google Pay, and Samsung Pay. Merchants need an NFC-compatible terminal, like Helcim’s Smart Terminal, to accept these.
  
  
• QR code payments: Merchants can display a QR code for customers to scan with their phones, directing them to a secure payment page. This method is popular with mobile wallets and apps like PayPal or WeChat.
  
  
• SMS payments: Merchants send a payment link via SMS, allowing customers to complete the transaction by following the link and entering their payment details. This is useful for remote or service-based businesses.
  
  
• Mobile banking apps: Apps like Venmo, PayPal, and Zelle allow customers to transfer money directly from their bank account or linked wallet. Merchants can accept these payments via app integration or payment links.
  
  
• Tap to pay on mobile: Some merchants can now accept payments directly on their smartphones without a traditional terminal, using solutions like "Tap to Pay on iPhone" or apps that turn the phone into a mobile POS system.
  
  
• In-app payments: For businesses with mobile apps, in-app payments allow customers to make purchases or payments within the app itself using stored payment information, such as a card or mobile wallet.

Online vs. in-person mobile payments

There are two primary ways mobile payments are made: in-person and online. While both methods rely on smartphones or tablets, they differ in how the transactions are processed.

In-person mobile payments
In-person mobile payments are made when a customer physically visits your store and uses their mobile device to complete a transaction. These payments typically use Near Field Communication (NFC) technology, where the customer taps their device on your payment terminal.
Example: A customer taps their phone on your Helcim Smart Terminal using Apple Pay to complete the purchase.

Online mobile payments with a digital wallet
Online mobile payments occur when customers shop online and make purchases on your eCommerce website or app using their mobile device. Instead of tapping their phone, they use digital wallets (like Apple Pay, Google Pay, or PayPal) to pay through a web checkout interface.
Example: A customer pays for a product on your website using Google Pay during checkout on their smartphone.

How does a mobile payment work to ensure secure payments?

Mobile payments work through the use of Near Field Communication (NFC) technology or QR codes. Here’s a simplified breakdown of the process:

• Customer setup: The customer loads their payment card information and links their bank accounts to their mobile wallet (e.g., Apple Pay, Google Pay, or Samsung Pay). This integration allows for instant money transfers and enhances the convenience of the mobile payment system.
  
  
• Transaction initiation: At checkout, the customer holds their mobile device near the payment terminal or scans a QR code. The mobile wallet communicates with the terminal using NFC or other secure methods.
  
  
• Authentication: The customer authenticates the transaction through their device’s security features, such as fingerprint scanning (Touch ID), facial recognition (Face ID), or a passcode.
  
  
• Payment processing: The transaction is processed as a typical credit or debit card payment, with the mobile wallet acting as an intermediary, securing the transaction with encryption and tokenization to protect sensitive card information.
  

Why should your business accept mobile payments?

Offering mobile payment options has several advantages for your business:

1. Increased convenience for customers: Mobile payments provide a faster, contactless checkout experience. Customers can use their mobile devices to complete transactions quickly, which eliminates the need to dig for cash or cards, speeding up transaction times and enhancing customer satisfaction.
   
   
2. Security features: Mobile wallets use tokenization, encryption and biometric authentication, which means customers’ card details aren’t directly shared with your business. This adds an extra layer of protection against fraud.
   
   
3. Attracting tech-savvy customers: Younger generations are increasingly using mobile payments, and by accepting these methods, you can appeal to a broader audience, including tech-forward shoppers who prioritize speed and convenience.
   
   
4. Improved hygiene: In a world where cleanliness matters, contactless payments reduce the need for physical interaction between staff and customers, making it a hygienic choice for in-person transactions.
   

How to accept mobile payments with Helcim

At Helcim, we make it simple for businesses to start accepting mobile payments at low fees, whether you’re running a brick-and-mortar store or preparing for online capabilities. With Helcim’s Smart Terminal, accepting in-person payments via Apple Pay, Google Pay, or Samsung Pay is seamless, allowing customers to tap their smartphones to pay securely and conveniently.

Key benefits of accepting mobile payments with Helcim:

• Transparent, competitive pricing with no hidden fees.
• Quick setup of mobile-ready payment terminals for in-person transactions.
• Advanced security features, including encryption and tokenization, to protect customer data and prevent fraud in both online and in-person payments.
• Dedicated support to help your team get started and train them on processing mobile payments.
  

Let your customers know they can pay with ease by promoting mobile payment options in-store, on your website, and even across social media.
If you’re curious about how much you could save with Helcim, Submit your merchant statement today and get a personalized savings estimate!

Overcoming common challenges

While mobile payments offer many benefits, there are still some common challenges to overcome. One of the main challenges is ensuring that your device and payment app are compatible with the payment terminal. You may also encounter issues with connectivity or signal strength, which can affect the payment process. To overcome these challenges, ensure that your device and payment app are up to date with the latest software and security patches. Check with your bank or issuer to ensure that your card is compatible with the payment app and terminal. If you encounter issues during the payment process, be patient and try again, as this can often resolve the issue. By staying informed and prepared, you can effectively manage and overcome these challenges, ensuring a seamless mobile payment experience for your customers.

FAQs

1. What are mobile payments?
Mobile payments allow customers to make purchases using their smartphones or other mobile devices instead of cash or physical cards. These payments are processed through mobile wallets like Apple Pay, Google Pay, and Samsung Pay.

2. How secure are mobile payments?
Mobile payments are highly secure, thanks to features like encryption, tokenization, and biometric authentication (such as fingerprint or facial recognition). These features ensure that sensitive card information is not directly shared with merchants, adding an extra layer of protection.

3. What do I need to start accepting mobile payments?
To accept mobile payments, you’ll need a payment terminal that supports contactless transactions (NFC-enabled) for in-person payments. Helcim’s Smart Terminal supports mobile payments, making it easy to get started.

4. Can I accept mobile payments online?
Yes! Many eCommerce platforms, including Helcim’s online store solution, allow customers to pay using mobile wallets like Apple Pay and Google Pay during checkout.

5. Do mobile payments work for both Android and iOS devices?
Yes, mobile wallets like Google Pay and Samsung Pay work on Android devices, while Apple Pay is designed for iOS users. However, only qualifying Samsung devices are compatible with Samsung Pay, so users should check if their specific device supports it. Accepting these three options allows you to cater to both Android and iPhone users.

6. How can mobile payments benefit my business?
Mobile payments offer faster checkouts, increased convenience for customers, improved security, and the ability to attract tech-savvy, mobile-first shoppers. Offering mobile payments can help boost customer satisfaction and keep your business competitive.

7. Are there additional fees for accepting mobile payments?
There are typically no additional fees specifically for mobile payments compared to other card transactions. However, it’s important to note that fees may vary depending on whether the transaction is processed as card-present or card-not-present.

• In-person mobile payments (e.g., using Apple Pay or Google Pay at a payment terminal) are generally considered card-present transactions, which often have lower processing fees.
• Online mobile payments are typically classified as card-not-present transactions, which can carry slightly higher processing fees due to the increased risk of fraud. In both cases, Helcim offers competitive, transparent pricing so you know exactly what you’re paying for without hidden fees.
  
  Learn more about our pricing here.