Which factors do merchants care most about mobile payment? (2024)

Which factors do merchants care most about mobile payment?

Consumers and merchants generally care about several key factors when choosing a mobile payment system, including: Convenience: The ability to make payments easily and quickly, without the need to carry cash or credit cards.

Such as infrastructure, trust and security, financial inclusion, consumer preferences, and government support, are considered, other factors that could impact the adoption of mobile payment services in various economic contexts could be underestimated.

By considering factors such as security measures, user-friendly interfaces, compatibility with devices and integration capabilities, along with reliable customer support – you can select an app that not only meets your business needs but also enhances your overall customer experience.

Mobile payments can be convenient, fast and secure. They can, however, be expensive and still vulnerable to issues with technology. In particular, if there are any issues with the host phone, mobile payments will be unable to work at all.

Mobile Payments are Safe

Mobile payments offer safety and security advantages over more traditional payment methods. Cash can be easily lost or stolen, and even cash counting errors can lead to imbalances in your cash drawer.

To think about factors affecting adoption, we started with Rogers' five attributes (relative advantage, compatibility, complexity, trialability, and observability) but added to this using some recent Australian research from Kuehne et al.

The most important factors when choosing a payment method for online purchases include security of the transaction, ease of use, speed of transaction, any associated fees, reliability of the payment method, and whether it is accepted by the online retailer.

The customers' perception of EPS is mostly influenced by factors such as flexibility of the payment system, functionality, data management, privacy, and security of the system (Harris et al. 2011). Customers of EPS fear higher risk in using the web for financial transactions (Aladwani 2001).

How does mobile payment affect consumers?

Mobile payment offers several advantages for consumers, such as reducing the need to carry cash or cards, enabling faster and easier checkout, granting access to discounts, rewards, and loyalty programs, helping to budget and track spending habits, and enhancing user experience and convenience.

A digital wallet — is even more secure than a chip card because it doesn't use your actual card number for the transaction. As a security measure, your card information is only used in the initial setup of the wallet, helping increase mobile payment protection.

Speed of transactions

For both the seller and the customer, online payments save a lot of time. People don't have to wait in lines, take time to write checks, or wait for paper bills. They don't have to wait for banks to clear their checks so that they can access the money.

Technical issues, security risks, limited consumer protection, and fees are some of the drawbacks of virtual payments. Virtual payments are also dependent on internet access and may be unavailable in areas where access to the internet is limited or unreliable.

Mobile banking offers expense tracking, automated savings, account access for those who might not have a branch nearby and more to aid in your finances.

Mobile wallets secure a user's credit or debit card information through highly-advanced methods of encryption and tokenization. Encryption is a security feature that uses a secret key to ensure private information is only accessible to the sending and receiving parties.

And there are budget-conscious people who monitor their data usage very closely, which can be a reason that people avoid mobile banking. They simply don't need it: A 2015 survey found that 87.9 percent of U.S. adults did not use mobile banking because they felt their banking needs were being met without it.

Education, Occupation, contact with Personal Localite sources of information, Group membership and Experience were the most influencing factors for adoption of recommended technology.

What are adoption factors?

In particular, six factors (information, environmental personality, socio-economic and demographic factors, dwelling unit characteristics, psychological variables, and past experience) are shown to directly and indirectly affect adoption behavior.

The UTAUT model also posited 4 additional factors important in the behavioral intention to adopt technology: facilitating conditions, social influence, effort expectancy, and performance expectancy.

Credit and debit cards

For B2C purchases, debit and credit cards are currently the most popular payment options.

In general, credit and debit cards are the most widely used payment method.