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Study: Small Business Owners Make Progress With Mobile Payments

[ 0 ] Jul. 22, 2013 | SBO Editor

As mobile commerce activity increases within the U.S. marketplace and payment processing advances alongside it, ISOs, acquirers and other merchant service providers must reposition themselves to meet the immediate and future needs of the businesses they serve. A newly released research report from ControlScan and TransFirst promises to help meet this objective, sharing important insights into small merchants’ progress and struggles in implementing various mobile payment technologies.

Responses from more than 1650 merchants were collected from March 18 to April 18 of this year via the ControlScan/TransFirst 2013 Mobile Payment Acceptance Survey. The survey was sent to those businesses classified by credit card brands as “Level 4,” which are merchants that process fewer than 20,000 ecommerce or 1 million physical card transactions annually. These typically small to mid-sized businesses represent service areas such as retail and consumer goods, healthcare and human services, personal and professional services, and restaurant and hospitality. Three-quarters of survey respondents’ businesses have 10 or fewer employees.

Key data points from the survey include:

  • 82% of ecommerce merchants don’t know whether a purchase on their website comes from a mobile device or a PC, yet data from those who do indicates that mobile site visitors are representing a significantly increasing portion of online sales;
  • 49% of ecommerce merchants know their websites are not currently optimized for mobile devices and an additional 17% say they don’t know or are unsure about their site’s current status, revealing that as many as two-thirds of these merchants may be putting up roadblocks to the growing number of mobile consumers; and
  • 10% of respondents to last year’s benchmark Mobile Payment Acceptance Survey said they were using a smartphone or tablet to accept face-to-face credit card payments. In less than one year’s time, that number has almost doubled to 17%.

“The mobile payment survey findings show that small merchants have a real business need to effectively adapt to mobile technology trends,” said Dave Abouchar, Sr. Director of Product Management for payment security and compliance solution provider ControlScan. “Now is the time for ISOs and acquirers to embrace these trends with innovative offerings that guide their merchants toward business growth and increased revenue.”

“The mobile consumer is knocking at the small merchant’s door,” agreed Craig Tieken, Director of Product at TransFirst, a leading provider of transaction processing services and payment enabling technologies. “Business owners who aren’t already up to speed with mobile payment acceptance need to have a viable plan of action to get there.”

The free ControlScan/TransFirst 2013 Mobile Payment Acceptance Survey research report is available now. In addition, Abouchar and Tieken will present an expert review of the survey’s findings in a June 27 Electronic Transactions Association (ETA) webinar entitled “Small Merchants and Mobile Payments: Measuring Current Technology Awareness and Adoption.

About the Survey

The ControlScan/TransFirst 2013 Mobile Payment Acceptance Survey was sent to the recipients of the companies’ 2012 benchmarking survey as well as other randomly selected Level 4 merchants listed in the ControlScan and TransFirst databases. A total of 1652 responses were collected from March 18 through April 18, 2013.

About ControlScan

Headquartered in Atlanta, Georgia, ControlScan delivers payment security and compliance solutions to a global network of payment service providers and the merchants they serve. The company’s innovative approach to secure hosted payment and PCI compliance solutions leverages technology, education and services to provide flexible options for its customers. Known for its thought leadership, ControlScan gives its customers a clear view of marketplace issues and trends so they can remain competitive. For more information, please visit ControlScan.com or call 1-800-825-3301.

About TransFirst

A leading provider of secure transaction processing services and payment enabling technologies, TransFirst offers innovative products and services designed with financial institution, independent sales organization, healthcare, e-commerce, government and merchant customers’ unique needs in mind. By collaborating with our customers and utilizing strong industry knowledge, we help them grow their businesses. Founded in 1995, TransFirst continues to attain significant market share and world-class expertise in growing and profitable industry segments. Built on a platform of personal service, customer commitment and flexible pricing, TransFirst currently processes approximately $37 billion in annual sales volume for more than 190,000 merchants and financial institution partners. For additional information, please call 1-800-745-2659 or visit www.transfirst.com.

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Category: Features