Card Readers are Taking Over the Mobile Payments Market
BI Intelligence examined the specific reasons why card readers will beat out Near-field Communications (NFC).
Small businesses are jumping at the opportunity to create a personalized payment experience for consumers by attaching card readers to their mobile devices.
Here are our reasons why mobile card readers have the lead in the market:
- Consumer Behavior: 80% of US consumers own a credit or debit card. These are widely used and most familiar forms of payment. By integrating with mobile card readers, there is no changing of consumer behavior. Card reader solutions are addressing the current situation, instead of hoping that NFC payment solutions will take off (in which there is no guarantee that this will happen).
- Competitive Market: By continuing to work with payment processors, card-readers can continue to make their hardware cheap or free while staying competitive. Because NFC is a fairly new technology, prices have to stay high.
- Time/Effort: Employees already know how to swipe a card. However, training them for NFC payments takes some time and effort. With card reader solutions, there is no need for training as the software is straightforward and the technology is familiar.
- Simplicity: The question that begs to be asked in the “NFC vs card reader” debate is whether tapping a phone is any easier than swiping a card. Consumers will most likely lean towards using the form of payment that they’re familiar with as opposed to using a new technology, that while it may be simple and quick, is not second nature.