Increase sales by including Mobile Money payment option for the holidays & beyond

Mobile Money is a relatively new concept in my local jurisdiction but worldwide its use has been on an upward trajectory since 2014. 

Below are two important 2015 statistics on the industry from the GSMA Mobile Money Programme:

-          Mobile Money is now available in 93 countries

-          Mobile Money providers are processing an average of up to 33 million transactions per day

To bolster these statistics, another study conducted by the US Federal Reserve Board at the close of 2014 reported that 39% of all mobile users with smartphones have made a point-of-sale (POS) payment using their mobile phones in the 12 months prior to the survey; and of the users with smartphones who made a POS payment 31% did so by scanning a barcode or QR code displayed on their phone screen’s at check out.

Here in Jamaica, our largest commercial bank, the National Commercial Bank recently launched Quisk, a mobile money account that allows money to be sent from one person to another but more importantly with the capability to make purchases using any mobile phone.

Image courtesy of Google Play

This kind information augurs well for startup businesses, particularly as we approach the holiday season.  While online and debit/credit card sales have been established as legitimate ways to secure sales, mobile money now introduces the opportunity for businesses to really not miss a sale.  And the fact is that businesses at the startup stage may not yet have an established location from which business is conducted.

A formal definition of Mobile Money, according to www.worldremit.com defines mobile money as an electronic wallet service, available in many countries, that lets users store, send and receive money using their mobile phone. It is also defined as a method used to make electronic payments and a popular alternative to bank accounts.

For the holiday season and beyond, startup businesses in particular are urged to add this payment option to the already existing ones to increase their sales potential.   Some of the main advantages of this method are quite obvious; increased safety in cash handling, easy access once both parties have a mobile phone and convenience to shop anytime and anywhere.

However a significant plus of this payment option is that it uses the network of the service provider and therefore does not require an internet connection.  

Startup businesses that operate in a pop-up shop or more informal scenario would then be able to capitalize on sales particularly in the lesser developed areas of their locale.  Mobile Money also reduces the amount of paperwork required as money is sent directly into the business’s account.