Mobile banking solutions for point-of-sale payments – Drivers and stumbling blocks
Financial institutions have realized that it is time that they move beyond the basic mobile banking services to focus on the untapped market segment. Apart from building banking software solutions to enable mobile bill payment and person-to-payment system, banks are now considering the potentials of point-of-sale payment system to bring in more customers under their fold. Moreover, banks are keen to build mobile banking solutions that promote point-of-sale payment system, which has emerged as a popular option amid consumers.
Though there are driving forces that push banks to introduce this option, there are some stumbling blocks that need to be conquered by banks to enable this payment facility. What are the features that arrest the attention of banks that want to build mobile banking solutions to introduce point-of-sale payments?
Drivers
One of the solid reasons that could make financial institutions to invest in mobile POS payments is the need to meet customer expectations. In being the closest ally to an individual, mobile device has made things easy for the individual who is now keen to utilize mobile payment option offered by financial institutions.
With customers showing great interest in mobile payments, banks have the opportunity to lure their attention by introducing solutions that promote point of sale payment. In short, mobile could now be converted into a wallet carried by the consumer with the introduction of mobile payments.
There are other reasons that push a financial institution to introduce this mobile payment system through this point of sale payment option. Financial institutions can make use of the existing assets, as that of payment networks, to afford point of sale payment system.
More importantly, banks have started offering their focal attention on mobile POS payment as they are in a better position to understand as to the steps that need to be taken to afford such payments for the mainstream.
Moreover, financial institutions that are keen to enhance ROI realize the gains out of mobile payments, where cost to service can be reduced, and payments could be moved to cards to enable banks to reach untapped market segments.
Stumbling blocks
There are some stumbling blocks that come in the way of a bank that wants to afford mobile point of sale payment system. While there is a growing demand for mobile payment system, financial institutions could face hurdles in the form of merchant acceptance. Merchants tend to look into the costs involved in implementing the POS technology, as they are not keen to share technology costs. Furthermore, merchants are not sure about the value that this system could bring in and other concerns like the barrier to the usage of this payment system have also not worked well to draw a favorable response from merchants.
Realizing the potential of point-of-sale payments, financial institutions have turned their attention towards mobile banking solutions that promote this mobile payment system.
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