Enabling Every Device to Accept Payments

Enabling Every Device to Accept Payments
22.06.2017 07:30 am

Enabling Every Device to Accept Payments

Payments

A colleague of mine used to say that “smaller businesses don’t think of themselves as small, they just haven’t finished growing yet.” I was reminded of his words when I recently came across research by Worldpay that 1 in 10 of these nascent businesses in the UK miss out on a key catalyst for growth: the ability to accept card payments.

According to analysis from Expert Market, 1 in 4 UK consumers avoid cash only businesses, withholding critical revenues. In Poland, we found that nearly 60 percent of consumers have experienced a situation where they could not pay with their card because the business did not have a payment terminal.

So, how do we help make the process easier for both businesses and consumers? Industry reports cite the cost of point of sale (POS) devices as one of the top reasons why smaller businesses may be hesitant to accept card payments. Rather than adding more technology into their operations, sole traders and micro entrepreneurs are eager to get more out of their existing digital devices.

Mastercard has a vision and a plan to do just that.

Together with our acceptance partners, we are exploring a variety of solutions, including one where small businesses can use a mobile phone to accept contactless payments without the need for any peripheral device. These transactions can be made by a customer tapping their contactless card or smart phone (using a digital wallet, e.g. Masterpass) on the merchant’s device. In the UK, where we are working with Worldpay, and Poland, two markets with high contactless usage, we’ve selected a small group of businesses to test this proposition.

Small businesses participating in the pilots will download and install an app from their payment service provider, create an account and start accepting contactless transactions from their customers. It can’t get easier than this. As their business grows, these companies have an option to upgrade to use a mobile POS or regular POS terminal so that they can accept all other forms of payments.

Leveraging software-based payment solutions is key to enabling those businesses who previously relied on cash and checks to accept cards and other forms of digital payment. At the same time, we have the responsibility to balance any emerging solution with the highest security standards. To this end, Mastercard has developed specific security principles that need to be adopted by all pilot participants. Moving forward, our goal is to continue to work with our partners to develop industry standards for any new type of solution.

Making it easier for small and micro businesses to accept digital payments may spur additional growth for them and enable an additional 40 million of these merchants globally by 2021.

Related News

Mastercard enables Contactless limit raise across 29 countries; and champions permanent increase

Today Mastercard announced its commitment to enabling the increase in contactless payment limits across... Read more »

TransUnion Research Quantifies How Social Distancing is Changing Shopping Patterns

TransUnion (NYSE: TRU) today released new research that quantifies the spike in digital commerce since social distancing became widespread globally. The company found a 23%... Read more »

Wirecard expands presence in Mexico

Wirecard, the global innovation leader for digital financial technology, and Banca Afirme, a Mexican financial institution with a nationwide presence, are collaborating to... Read more »

Barclaycard to enable UK retailers to accept new £45 Contactless Limit

Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, will be rolling out the deployment of the new £45 contactless limit across UK retailers... Read more »

Digital Payments in Europe to Surpass $802bn Transaction Value This Year

The increasing number of mobile phone users and the massive growth of eCommerce have led to the rapid adoption of digital payments all over the world. Cashless payments have... Read more »

SumUp launches free Mobile Payments and Invoicing across Europe to help consumers pay safely and remotely via smartphone

As Europe moves into COVID-19 lockdown - affecting small businesses and retailers everywhere - SumUp, the London-headquartered fintech and leading provider of digital payments... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel