The mobile payment devices market is growing rapidly
From market stalls and craft fairs to small shops and individual transactions, the ability to take payment via your mobile device is getting easier all the time.
Mobile card payment devices – which plug into smartphone devices via recharger or headphone sockets to process credit card payments via an app – are no longer just the preserve of early adopters.
However, issues with European compatibility have so far prevented these bigger names from launching this side of the Atlantic. In Europe, Swedish company iZettle is looking to steal a march. It, along with SumUp, Payleven, Paypal, mPowa and Intuit are the first to open their services to the UK’s small businesses.
The mobile card payment devices market
European card payments – or cashless transactions – are on the rise, growing by 18% annually. This is a statistic that might trigger alarm across many small business owners who cannot afford the lengthy sign-up processes, expensive set-up fees, monthly costs and minimum spend charges that are synonymous with gaining merchant status and running traditional point of sale systems.
Yet, by failing to take cards UK small business owners are turning away the opportunity to earn more money and on many occasions turning down cashless customers altogether.
A report from YouGov reveals that shoppers splash out more when using their plastic, spending on average £64 on their cards at small retailers in contrast to £20 in cash.
With global debit card use expected to hit 5.3 billion by 2015, companies across the world have raced to produce portable devices that turn smartphones into card payment systems.
The concept was pioneered by Twitter’s Jack Dorsey in 2010 with his thumb-sized US-based product Square, which plugs into the headphone sockets of smartphones and operates through a downloaded application to enable business owners and service providers to accept card payments anytime, anywhere.