Selecting the right payment solution is vital for small businesses. They require a flexible method to help customers easily complete transactions. Nowadays, payment solutions offer more than just credit card processing due to technological advancements. Small businesses have a range of options for accepting payments. However, choosing the ideal solution can be challenging. This article will guide you through key factors when picking a mobile payment system. It will also provide an overview of the seven most popular options, detailing their accepted payments, coverage, and fees.
What are Mobile Payments?
Mobile payments involve digital transactions using a mobile device like a smartphone or tablet. These solutions let businesses safely collect customer payments, offering more places to do so. Different types of mobile payments include:
- I use a card reader attachment to swipe credit/debit cards on a mobile device.
- I used a chip reader attachment for credit/debit cards with chips.
- They make card payments on a mobile device without needing the card.
- We are using mobile apps to transfer money.
- We are using digital wallet apps with near-field communication technology.
- And there are more methods available.
How to Choose the Best Payment Solution
Picking the right payment system for your small business depends on different things. Here are some questions to think about when you’re deciding which mobile payment solutions work well for your specific company:
How much does it cost to use this payment option? What are the fees, membership costs, equipment expenses, and transaction rates?
- What kinds of payments can be made using this platform?
- Is this payment method secure? Does the provider ensure customer information, transaction details, and guarding against fraud are handled?
- What equipment, software, and technology do you need for this payment system?
- Where do your customers connect with your business? Does this payment choice cover all the spots where customers want to pay?
- What steps should you take if you face an issue or have questions? Is there a customer service person or online help you can use?
Stripe serves as a comprehensive payment solution for small businesses, offering various ways to handle transactions and added features that help entrepreneurs enhance their ability to accept mobile payments.
- Accepted payment methods: Stripe provides versatility by accepting various payment types, including credit/debit cards, in-app payments, subscription charges, mobile wallet transactions, and bank transfers.
- Global availability: Operating in 43 countries, Stripe extends its reach through the Stripe Atlas initiative, enabling international business proprietors to establish a U.S. company to receive and process payments.
- Cost structure: Stripe keeps things simple with no initiation fees or recurring monthly charges.
- Credit card transactions: Stripe charges 2.9% of the transaction amount for processing credit card payments, alongside an additional fixed fee of $0.30 per transaction.
Square is a prominent player in mobile payment solutions tailored for small businesses, boasting a user-friendly approach that simplifies transactions for companies and customers. With its app, physical card scanners, and Point of Sale system, Square equips small enterprises comprehensively.
- Payment variety: Square ensures flexibility by accepting major credit cards, including American Express.
- Global reach: Currently accessible in the US, Canada, Japan, Australia, and the U.K., Square extends its point-of-sale functionality to numerous countries listed on app platforms.
- Simplified pricing: Square’s structure involves no initial setup fees or monthly charges, and the essential card reader is provided free of cost.
- E-commerce and Invoice transactions: With a charge of 2.9% and $0.30.
PayPal stands out as a prominent payment solution, offering diverse methods for small businesses to receive funds. “PayPal Here” is a mobile app that broadens PayPal’s online payment capabilities to encompass physical store locations.
Variety of payments: PayPal Here facilitates card payments and empowers small businesses to document cash/check transactions, generate invoices, and even support online payments and bank transfers. (Venmo, another app under PayPal, enables requesting, sending, and receiving money.)
Geographical scope: In the United States, Canada, Australia, and Hong Kong, PayPal Here’s card reader and merchant processing system are available.
- Transparent fees: No initiation, PCI, monthly, or equipment charges apply.
- Swipe-based transactions: Incurs a 2.7% fee.
- Manually entered or scanned transactions: 3.5% plus an additional $0.15.
- PayPal transactions: Entail a 2.7% fee.
- International transactions, swipe, and PayPal: Subject to a 3.7% fee.
- International transactions, manual entry, or scan: Attract a 4.5% fee and $0.15.
Chase Paymentech, an offering from JPMorgan Chase, is a merchant service and payment processing solution that empowers small business proprietors to receive immediate payments through mobile devices.
Variety of payments: Chase Paymentech ensures the acceptance of all major credit and debit cards and electronic checks alongside modern digital, alternative, and mobile payment methods.
Global reach: Chase Merchant Services extends its capability to accept payments in over 130 various currencies, accommodating international transactions.
Cost structure: The charges can vary based on the specific country and currency, leading to different pricing arrangements.
Shopify offers a complete eCommerce platform for crafting and customizing online stores. Their package includes Shopify Payments, which means you can enjoy reduced transaction charges and skip the need for external payment gateways. This service is accessible in various countries and includes safeguards against fraud alongside simple connections to accounting systems.
Cost: Beginning at 2.6% plus 30¢ per transaction for online credit card transactions, and lowered fees for in-person dealings.
Best Fit: Geared towards small businesses with an online store established through the Shopify platform.
Pay Simple combines mobile payment solutions and traditional merchant services catering to small businesses. It equips them with mobile payment choices and appointment scheduling through phones and tablets.
- Payment acceptance: Pay Simple covers credit cards, debit cards, and e-checks, with the added benefit of creating invoices and managing diverse payment options via a secure portal.
- Coverage: Currently, Pay Simple is limited to U.S.-based businesses processing payments in USD.
- Pricing: Pay Simple’s pro plan starts at $49.95/month, alongside a $29.95 fee for their credit card reader.
4. Flexible rates contingent on Payment
Go Payment POS (Intuit QuickBooks)
Go Payment POS is a mobile card reader app and point-of-sale system that enables businesses to accept payments on iOS or Android devices. It seamlessly integrates sales with QuickBooks Online, simplifying fund and expense management for business owners.
Accepted payments: Go Payment POS covers significant credit/debit cards (Magnetic Stripe or EMV chip), bank transfers, Google Pay, Apple Pay, and Samsung Pay.
Global reach: QuickBooks serves 240 countries, but Go Payment POS availability varies by country and currency.
Pricing: Go Payment provides both a free and fee-based plan.
Free plan: Transactions start at 2.4% plus $0.25 per fee.
Fee-based plan: Priced at $20/month, transactions commence at 1.6% plus $0.25 per fee.
Mobile payments are digital transactions made using smartphones or tablets. They offer ways for small businesses to accept payments, from card swiping to app transfers securely. Choosing the right system depends on costs, received payments, security, equipment, coverage, and support. Stripe, Square, PayPal Here, Chase Paymentech, Shopify POS, and Pay Simple are among the popular options. They enable businesses to connect with customers quickly and manage funds efficiently, fostering growth and convenience in modern commerce.