Mobile Payments and Small Businesses Increasingly Coming Together

May 9, 2019         By: Steven Anderson

It might surprise some out there to learn that this week was National Small Business Week in the United States. As such, it’s a good idea to take a look at some of the issues that are both helping and hindering those businesses. New reports, meanwhile, suggest that one trouble spot for small businesses—accepting mobile payments—is rapidly diminishing and becoming part of the normal landscape.

The good news, based on word from Celent’s Patricia Hines, is that the biggest challenge is not finding a mobile payments solution, but rather finding the right one. Knowing which solution to actually put to work is the biggest challenge, in most cases, so it’s really a matter of narrowing a surprisingly broad field down to the best solution for them.

In turn, this has led to financial technology operations looking to step in, giving small businesses a hand not only with accounting tasks, but also with some higher-tier operations like payroll and invoicing functions. With such firms ultimately partnering with a bank to provide some of the infrastructure heavy-lifting, it makes the concept just a little easier to work with.

We’ve seen the increasing rise of point-of-sale (POS) solutions like the Square Point of Sale system, often the entry point for many small businesses who want to accept mobile payments. Solutions from PayPal and Etsy have given online-focused small businesses a leg up, and those extra concerned about security have discovered the value of biometrics in mobile payments.

It’s good news all around, because the problem isn’t a shortage of solutions. It’s actually a surfeit of solutions, with so many possibilities on hand that narrowing down just the right one is the problem. That’s the problem to have—better too many solutions than too few—but it still makes a challenge for businesses: spend a lot of time and effort that you could be using to build your business trying to find just the right solution, or accept that you won’t and take something less than optimal.

Still, with so many options, small businesses will have plenty of mobile payments options to choose from. With so many customers turning to mobile payments on at least some level, being ready for this trend will give small businesses a boost in the field.