Mobile payment processors allow for ‘more effective’ communication
Mobile payment processors, such as the popular Square device, are enabling small retail merchants to speak with customers in a more "educated and effective way," small business and retail expert Paula Rosenblum recently told Crain's New York.
"The device itself allows a retailer to communicate with his customer in a much more educated and effective way," Rosenblum, an associate at consultancy Focus.com, said, speaking of benefits mobile payment processors have over traditional point-of-sale equipment.
Small merchants may particularly excel through the development of mobile payment processing tools. Unlike traditional credit card services, which charge monthly fees based on transaction volumes, companies such as Square generally charge a flat rate per transaction. This is perfect for retail merchants that experience bursts in revenue or sell seasonal goods and may not make enough to cover annual contracts.
Because of the portable nature of mobile payment processors, they have other advantages as well. For example, retailers could take them to conferences or events or set up point-of-sale gateways in other areas of their stores.
