Did you know that the total Transaction Value in the Digital Payments segment is projected to be US$9,471.00 billion in 2023? But what does it mean for small businesses? Are online payments solutions beneficial for small businesses? Are they secure enough to protect the sensitive data of merchants and customers?
In this blog, we are going to discuss all these critical questions.
Benefits of Payment Apps for Small Businesses
Every payment app has its own advantages. For example, Google Pay is a good overall option while Apple Pay is best for Apple users. All you need is an expert Android developer or Apple Pay developer. However, all payment apps offer a range of benefits for small businesses, including convenience, security, improved efficiency, and additional features to boost customer engagement. We’ll discuss all these points in detail.
1. Reduced Expenses
Mobile payment apps can help small businesses reduce expenses in several ways. For example, mobile pay companies typically charge less for transactions than credit card companies, and some mobile pay apps have no transaction cost at all.
Businesses that operate on a cash flow model can benefit from mobile payment apps because they help reduce bank fees. Small businesses can also save money by only purchasing the software they need and avoiding the cost of purchasing other apps. Finally, payment app development enables cost savings coupled with revenue growth opportunities.
2. Increased Cash Flow
Mobile payment apps can help small businesses improve their cash flow by reducing bank fees, connecting all the apps used for payroll, expenses, and generating revenue to a central system, removing manual paper systems that cost time and money, making it easy for clients to pay, and helping produce professional proposals and invoices quickly. Online payments can increase sales by allowing customers to pay quickly and securely. By utilizing mobile payment apps, small businesses can streamline their processes and improve their cash flow.
3. Incorporate and Improve Loyalty Programs
Payments apps are a significant part of merchant services that can facilitate loyalty programs, allowing customers to easily access rewards and discounts. This blurs the line between physical and digital businesses, making it easier for customers to take advantage of loyalty programs.
By connecting a loyalty app directly with a mobile wallet, merchants can provide consumers with rewards that are tailored to their individual preferences. This allows merchants to create more personalized experiences for their customers, which can help drive customer engagement and loyalty. That makes it easier for customers to access rewards and discounts without having to carry around physical cards or coupons.
Mobile wallets can also be used to drive loyalty signup and usage, which can open doors to personalized offers that help increase average consumer spending. Small business loyalty programs such as Digital Loyalty Apps and Memberships & Recurring Payments can also turn customers into loyal patrons by offering rewards for repeat purchases.
4. Customer Engagement
A payment solution can help small businesses boost customer engagement by providing a convenient and secure way for customers to make payments. Mobile apps also allow businesses to create loyalty programs, send push notifications with valuable content, and offer rewards for frequent customers.
Mobile payment apps provide a fast and easy way for customers to make payments, which can help increase customer satisfaction. By offering mobile payment options, small businesses can create an engaging experience that encourages customers to return.
How to Secure Payment Apps
1. Two Factor Authentication
This type of security, also referred to as “2FA,” authenticates users using two different forms of identification. This can include a password, a credit card, a phone number, and a biometric feature like voice, facial, or fingerprint recognition.
Mobile payments are becoming increasingly popular because of these developments in payment technology, which safeguard both customers and merchants from fraud and cybercrime.
2. Multi Factor Authentication (MFA)
● Increases Security
Usually, users need three credentials for multi factor authentication: their identity, their security token, and the password they know (a secure biometric verification). Multi factor authentication requires at least two of these credentials. However, the ones to use and the scope of access for each change to suit a company’s requirements.
● No Risk Of Password Breaches
Did you know that most passwords that people use in an organization are duplicates? That makes it easy for a hacker to breach a network. Therefore, everyone must have complicated and one-of-a-kind passwords. Multi-factor authentication is a better practice. It is also a scalable solution for expanding user bases and works with Single Sign-On (SSO). Multi-factor authentication is ideal for businesses aiming to accelerate their digital transformation due to its wide customization options.
3. Data Encryption
The primary strategy of payments gateway for securing sensitive transaction data is data encryption. It will encrypt the data when users enter their card information at checkout.
Data is converted into another form, or code, through encryption so that only those with access to a secret key can read it. The payment gateway then decrypts the transaction using its own private key. By doing this, the likelihood that the data may end up in the wrong hands reduces significantly.
4. PCI DSS (Payment Card Industry Data Security Standard) Compliance
The major card schemes apply the Payment Card Industry Data Security Standard, often known as PCI DSS, as a set of compliance guidelines and security requirements. Any company that accepts credit cards or debit cards must comply with the PCI DSS.
Following the compliance guidelines guarantees a safe environment for credit and debit transactions, protecting customer information from fraud and card theft. Any company that accepts payments online needs to be aware of PCI DSS requirements in order to choose a reliable partner for processing payments.
5. Tokenization
The process of tokenization transforms sensitive information about the cardholder into a security token. Programmers can use hashing, encryption, and private keys to create a token. Having a payment gateway that uses tokenization increases security by several notches. That is because card schemes forbid merchants from retaining card numbers unless they are fully compliant with PCI DSS (Payment Card Industry Data Security Standard) regulations.
Financial software development helps transmit sensitive data over the internet only once using tokenization. It is then used for further payment requests after the token has been formed. Additionally, it is important to match the IP and billing address information and apply network security measures when processing online payments. These practices help create a secure cardholder data environment that can protect against fraud and other malicious activities.
Why Choose Narola Infotech as Your Trusted Fintech Software Development Company
Narola Infotech is a leading institution in custom fintech app development. What makes us different from our competitors is our extensive attention to detail and understanding of your requirements. And that is exactly what our clients say about us.
If you wish to create a payment app or want to integrate an existing one into your app or website, feel free to connect with us. Our experts will reach out to you to discuss your project.