How Is The Mobile Wallet Helpful For Small Businesses?

  • May 23, 2021

It should come as no surprise to anyone that the use of mobile wallets is on the rise. Mobile wallets offer a secure and convenient way of making payments, so who wouldn’t want to use them?

Their growing popularity means that many businesses have now adopted the mobile wallet model. However, this shift in trends has primarily occurred among large businesses that have the means to provide customers with various payment options.

Small businesses are still struggling with mobile wallets, but there is no reason to hold back on this innovation. There are a lot of ways the mobile wallet is helpful for small businesses.

This article will talk about how a mobile wallet helps small businesses, whether they’re actually safe to use and how popular they are.

How The Mobile Wallet Is Helpful For Small Businesses 

Small businesses may be reluctant to adopt mobile wallets. After all, it’s easier to stick to what you know. However, mobile wallets can offer businesses a range of benefits that we’ve listed below.

1. Offers A Range Of Services

Mobile wallets offer a huge range of services to businesses that can make your day-to-day operations easier. The biggest service is, of course, the ability to accept payments from customers for purchases. Since many customers now prefer using mobile wallets, accepting mobile wallet payments can increase your customer base.

But mobile wallets go beyond this and also offer additional services. For example, payit, the first mobile wallet in the UAE, offers a fee collection solution for businesses that run on a membership or subscription model.

If your business relies on recurring payments from customers, as gyms and schools do, payit aims to make membership and subscription payments quick and simple. So, how does it work?

You have to get your businesses listed on payit and state the kind of fees you charge. Then, you choose whether you want the integrated or non-integrated setup. The whole setup process takes less than two weeks.

Once it’s done, your customers will be able to easily make recurring payments. The best part is that you can get the funds in your account the very next day, given that you have a domestic bank account in the UAE.

This is quite fast. We don’t have to tell you how usual bank transfers can take 2 to 3 days to show up on your account. In contrast to that, payit offers a quick and simple solution! So, just like Payit’s fee collection solution, a lot of digital wallets offer unique services to businesses.

2. Can Increase Your Customer Base

We touched upon this briefly in the last point, but let’s look at it more closely and in the context of a small business. As a small business, your number one aim is usually to grow. To do that, you need to largen your customer base.

Customers will gravitate to businesses that are convenient for them, and lately, this means businesses that accept mobile payments. Since mobile payments are secure, quick, and easy, they increase customer satisfaction considerably.

So, when you start accepting mobile wallet payments, you make your business more attractive to customers, especially millennials. When having to choose between you and a competitor that doesn’t offer mobile wallet payments, the chances are that you will win over more customers and grow your customer base.

Hence, mobile wallets are super helpful for small businesses looking to grow. 

3. Makes Bookkeeping Easier

When you’re a small business, you’re still struggling to get all your operations running smoothly. Luckily, a mobile wallet can even help with your business operations! One of the primary things you need to do is have an accounting system and keep your books in check.

Your accounting system essentially runs a lot of business operations for you. It’ll help you make invoices, pay your dues, and will keep your accountant in the loop about all these transactions.

Using mobile wallet payments makes this whole process a bit easier. Firstly, bookkeeping relies heavily on your team to log accurate entries. If someone forgets even a single purchase, your books can get messed up, and you could eventually be slapped with heavy fines.

Luckily, when you use a mobile wallet, this isn’t a problem. A mobile wallet keeps a record of all your transactions, making it virtually impossible to miss one when you’re entering data into the software.

Having the data available on your mobile wallet also reduces the amount of time your team spends on data entry and bookkeeping tasks. This saved time could be used to give employees new responsibilities.

Since mobile wallet payments are updated in real-time, you’ll also get more accurate data and can keep your accounting records up to date.

4. Can Decrease Your Costs

Small businesses usually don’t have high-profit margins. That’s why it’s essential to keep costs as low as possible, and a mobile wallet can help you do this!

Mobile wallets help small businesses reduce overhead costs and bank charges, such as credit card fees. When a customer uses a credit card to make a purchase, a small tax is charged. This amount is usually absorbed by the business and can add up to be a significant amount overall. With digital wallet payments, there’s no tax you have to pay!

When a small business adopts mobile wallet systems, they also reduce the need to have a costly physical device available to accept payments, such as a card reader.

Mobile wallets rely on NFC technology for purchases to go through. Some businesses choose to buy a card reader with NFC enabled on it. However, if you want to save on costs, certain applications can turn your phone into an NFC reader too! So just install such an app and start accepting payments.

With digital payments also come digital receipts. When you accept mobile payments, you can email your customers their receipts. This eliminates the need to buy paper and ink for paper receipts, saving you money.

Are Mobile Wallets Safe? 

One of the biggest obstacles to adopting mobile wallet payment systems is the fear that they pose a security risk. However, this couldn’t be further from the truth.

Mobile wallet payments are much safer than using credit or debit cards. When credit or debit cards are used, the customer’s personal information is left vulnerable. This is because the magnetic strip behind the cards contains all this personal information.

In contrast, digital wallets never use your personal information to make a payment. When prompted to make a payment, they generate a unique code for one-time use. Digital wallets also need users to do a biometric verification before payment is processed – so you don’t have to worry about it ‘getting stolen.’

Are Mobile Wallets Just A Hype? 

No, mobile wallets are here to stay. Some people may see mobile wallets as a hype that will come and go, but a simple look at statistics will tell you that this is definitely a hype that’s not going away.

As far back as 2015, research showed that 40% of millennials would switch to solely using mobile payments. However, Europeans aged between 55 and 64 are the group that is adopting mobile payments the fastest, so it’s not just limited to one age group.

Some small businesses may be scared of facilitating mobile wallets if they feel that this method of payment will just die down. However, we think you have no cause to worry. Mobile wallet payments aren’t going away any time soon.

They offer small businesses significant benefits that you should take advantage of asap!

The Best Mobile Payment Apps For Small Businesses

What mobile payment app will suit your business the best depends on a variety of things, but namely, where you’re located and what currency you primarily work with.

If you’re in the UAE, payit e-wallet is the most popular option. payit offers businesses services such as:

  • QR Code Payments – get your unique QR code that customers can scan to make a purchase
  • Sound Payments – get instant payments that are transferred to your account within seconds
  • eDirham Instant – pay any government taxes you may have with Payit

Final Words

Mobile wallets have been around for a while but have gained a large amount of traction in the last year. More and more people are beginning to rely on their mobile wallets and opting out of having to carry cash or plastic with them.

For businesses, we know it can be scary to adopt something new. However, embracing innovations is a risk that everyone takes in order to grow. Mobile wallets have a large range of benefits for small businesses in particular.

If you’re too reluctant, keep alternate payment methods active alongside, so you have a fallback option to rely on if anything goes wrong.