There are dozens of mobile payment processors you can integrate into your point of sale system, but which of them is best for your business? Finding the right processor can be quite time-consuming since there are so many options. Fortunately, Processing Card's here to help. We've narrowed down the options with our in-depth comparison of the three most popular mobile processors today.
It's no exaggeration to say that mobile payment processors have become a need for modern businesses. The future of mobile payment applications is very bright. If you don't expand your payment options soon and adopt new technology, you may get left behind by your competitors.
In fact, thanks to the millions of consumers who now embrace mobile payments, the industry is expected to exceed $130 billion dollars soon. Statistics show that only 29% of smartphone users have mobile payment apps, so there's roughly around 69.2%—with a calculated margin of error—who have yet to make their first transfer with their devices.
A common misconception about payment processors is that these products are limited to business owners that run online stores. Yes, most mobile transactions happen online, but that doesn't mean brick-and-mortar stores won't need a mobile processor.
In fact, more and more consumers are ditching their credit cards for mobile wallets. The idea here is that customers can use their smartphone devices at the checkout counter to transfer payments via QR or bar codes.
Does your business even need a mobile payment processor? We can help assess whether your business performance would actually benefit from mobile payment processors. Contact Processing Card today!
Top 3 Mobile Payment Processors for Big and Small Businesses
To help entrepreneurs decide what mobile card payment reader suits their business, we've listed some of the most popular and widely-used prospective payment processors today. Note that the ranking is not based on their performance. These brands offer different features/products and have their respective strengths and weaknesses.
As the name suggests, PayPal Here is an in-house payment processor and card reader created by PayPal. The hardware itself is very portable and conveniently fits in your pocket. Plus, they have no monthly fees and the software integrates very nicely with both new and existing PayPal merchant accounts.
PayPal Here is undoubtedly among the top—if not the best—options for mobile payment processing when it comes to hardware features. Firstly, their POS equipment is Bluetooth-enabled. Merchants can use these to accept tapped and scanned mobile payments from anywhere within the vicinity of their Bluetooth devices.
Secondly, PayPal Here's processor is flexible. Their applications are supported by iOS, Android, and Windows devices.
Lastly, their POS equipment is much cheaper than other options on the market. You can get the standard mobile card reader for under $20 and the chip plus swipe card reader for under $25. If you want to accommodate chip, contactless, and magstripe transactions, you can upgrade your equipment to chip and tap plus charging stand package for under $80.
PayPal has set a fair, competitive pricing model that's very much predictable and easy to compute for. Swiped card transaction fees are at a standard 2.7%, invoice payments are at 2.9% plus $0.30, while manually keyed-in transactions are a bit higher at 3.5% plus $0.15.
The good news is that merchants don't have to pay any monthly or annual subscription fees to use PayPal Here. You can use the application for as long as you want. You'll only have to pay for the equipment you plan to get such as the chip and card reader, device stand, and other POS programs/devices.
Also, PayPal Here doesn't charge early termination or PCI-compliance fees, so business owners can end their set contract any time they need to. This is ideal for those who may want to expand their services and move on to payment processors that accommodate high volume transactions.
Perhaps the biggest disadvantage of PayPal Here is they do not offer next-day funding. PayPal is very strict with what they process. They will go above and beyond to avoid the risks of fraudulent transactions. However, you can reduce the waiting time to just one business day if you sign up for their debit MasterCard option.
Another thing to bear in mind is that PayPal does not credit back charges on refunded payments. Let's say you refunded $100. The $3.00+ you paid for transaction fees won't be returned to your account.
Small businesses looking for the most cost-efficient and affordable mobile payment processing services on the market can try Payanywhere. They primarily cater to clients who only need to process low-volume daily transactions.
Payanywhere doesn't necessarily have any unique features apart from the fact that they have the lowest processing rates on the market. However, they do have a comprehensive starter package designed to help newbies jumpstart their venture.
Not only do they have affordable rates, but they also offer plenty of freebies. In fact, merchants can get their magstripe reader, virtual terminal, and mobile payment processing app free of charge. Plus, same-day funding is available. Transactions cleared will have the funds credited to your bank account in just a matter of hours.
Payanywhere has a standard processing fee of 2.69%. There may be other processors that charge lower rates, but most of them have an additional service fee on top of their interchange rates. On the other hand, Payanywhere doesn't. Low-volume clients will be able to save a lot of money, especially on days when there aren't too many customers.
Yes, Payanywhere offers low rates. However, merchants should watch out for their volatile tiered pricing model. There are cases where the fees exceed the average market rates if the business client has poor credit or operates in a high-risk industry.
If you've ever tried becoming an e-commerce entrepreneur, there's a good chance that you've heard of Shopify. It's one of the most popular payment processing software options that allow merchants to put up multiple different products on the web. Their processor/equipment is primarily supported by any iOS or Android smartphone software.
Shopify is undoubtedly the ideal payment processing system for e-commerce stores. Firstly, they have a very simple interface that allows users to make their website quickly and efficiently even if they don't have prior experience with computer programming, web design/architecture, or information technology. In just a matter of hours, anyone can have their own high-quality site set up.
Secondly, they have the most modern and up-to-date shopping cart technologies. The payment gateway pages and terminals on their system were built to process high-volume transactions on a daily basis. You won't have to worry about common issues like crashed sites and such.
Lastly, their processing system can accommodate future business expansion. There are many e-commerce brands that want to expand their market by opening a brick-and-mortar store. The only problem is it's too risky. A good approach here is to start with a small store first—consider upgrading next time once you notice good business in-store performance.
With Shopify's payment processor, you can accept payments wherever you are. This is great for boutiques and pop-up stores that aren't based in one location alone and have to relocate routinely. All you'll need to do is equip your smartphone and tablet with the necessary Shopify applications.
The processing fees Shopify charges merchants is based on what type of account they choose to sign up for. Shopify offers five different plans:
Merchants can get access to a reliable third party payment processor for just $9 per month with the Shopify Lite plan. This is for sellers who don't need a website. Processing fees are at 2.9% plus $0.30 per online card transaction. Other payment methods only have a 2% charge.
For $29 per month, merchants can get access to Shopify's payment processor and have their own website built. Online card transactions have a standard processing fee of 2.9% plus $0.30, in-store transactions are at 2.7%, and other payment methods are only at 2%.
This is the most popular plan and offers the most value for your money if you are an average-sized e-commerce store owner. It costs only $79 per month. Online card transaction fees are at 2.6% plus $0.30, in-store payments are 2.5%, and other payment methods only have a 1% fee.
The Shopify Advanced plan costs $299 per month. Online card transactions have a standard processing fee of 2.4% plus $0.30, in-store payments are at 2.4%, and fees for other payment methods drop to a meager 0.5% fee.
This type of account is exclusive for company and enterprise owners. To see how much Shopify charges for their premium services and technologies, you'll have to consult with one of their agents. You cannot view or compare the fees on their site.
Shopify has a very versatile software suitable for almost any tablet/smartphone and their fees are predictable. However, business owners will find themselves needing to add on multiple services. If you're not careful, additional service fees can pile up and directly lower your supposed profits.
The mobile payment market has grown exponentially over the past few years. Experts are even claiming that the total market value will exceed $130 billion soon.
Number of mobile payment users in America
Experts believe that the number of mobile payment users in the country is expected to exceed 70 million soon.
Still on the fence on which mobile payment processor to use for your business? We at Processing Cards have in-depth reviews on the best payment processors on the market. We can help you find the most suitable option based on your specific needs. Check out Processing Card today!
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