The shift to electronic payments and merchant account technologies is leaving conventional brick and mortar businesses behind. A new development in payment processing that is causing quite a stir among online merchants is the use of mobile phones as electronic wallets.
E-commerce is changing the face of business and consumers. It is ushering in a new era of enhanced efficiencies and greater customer service. In the fast-paced world of e-commerce, it is no wonder that there are many changes in the payment-processing arena.
Many online merchants have begun to accept payments through credit cards. The new payment processing systems are helping them to comply with existing tax laws and international trade regulations.
One example of a service that is enabling the merchant to operate within the confines of the law is a merchant account provider that allows the merchant to accept payments through MasterCard, Visa, and Discover. The benefit is that a merchant account provider allows the merchant to use their own check-cashing machines to take payments.
This approach cuts down on the overhead costs that traditional payment processors create. The merchant can process and receive electronic funds directly from the credit card issuing bank. Payments are deposited directly into the merchant’s bank account and are available immediately upon the sale.
The service provider will collect the charges from the merchant and immediately distribute them to the merchant’s bank account. If the merchant does not want to use a check-cashing business for their checkout process, the payment processor can connect to any form of check cashing facility that accepts Visa or MasterCard.
E-commerce is quickly becoming a common place transaction. Online shopping has become so popular that many traditional retailers are looking for ways to provide customers with ease of access to the goods and services they sell. For example, many brick and mortar retail locations have been using the mobile phone as an electronic wallet to help alleviate many of the logistical headaches of selling online.
The mobile phone is becoming a convenient way to pay for products because the service provider can directly deposit the funds into the customer’s account. The credit card providing bank is then responsible for processing the order. Some merchant account providers even provide a special mode for cash advances.
The benefits to using a mobile phone as an electronic wallet are many. Because the service provider can provide an electronic wallet and charge the merchant directly, they can eliminate the amount of the payment-processing fees.
Because of the convenience and ease of use, shoppers are gravitating toward e-commerce. The new wave of internet shopping is bringing even more transactions to the forefront of merchant revenue streams.
An important element to consider in the new wave of alternative payment methods is that people are utilizing the phone as an electronic wallet and checking account. This is a trend that is likely to continue for many years to come.
Merchant account providers are likely to be the largest beneficiary of this trend. As the businesses that provide check-cashing services compete to provide this service, it is possible that mobile phone technology may completely transform the way people shop online.