Content Marketing Blog

What do smartphone payments mean for modern businesses?

A new announcement by Visa could change the way modern businesses interact with customers.

The credit card corporation has recently confirmed its intentions to begin offering payment options to businesses and consumers through the near field communications (NFC) technologies built into modern hand-held devices.

Bill Gajda, the head of Visa's mobile products sector, said in an interview with TechCrunch that the technology now existed that would allow for firms to begin "taking credit cards and putting them on mobile phones".

While not expected to entirely replace current payment methods, Gajda stated that he felt the new technologies would come to account for a large amount of retail purchases.

He stated that while some people would find NFC technologies convenient enough to replace their current payment methods , he expected it would be some time before the technique overtook physical credit cards in terms of popularity.

Visa already offers mobile payment options through Square, an enterprise acquired by the financial institution late in 2010 . The company provides registered businesses with a small device that plugs into an iPhone, iPad or Android smartphone, allowing them to bill customer's credit cards for goods and services directly.

As part of Visa's offering, Gadja emphasised the importance placed on the NFC offering being a stable, reliable payment option for hand-held devices to encourage new user adoption.

Other options being pursued by the credit institution includes potential partnerships with businesses and retailers. These deals could offer customers exclusive reward programs, and unique deals for paying with smartphone technologies.

The chances for modern companies to gain from these offerings include a potentially increased customer base and larger numbers of repeat purchases.

Businesses may also be able to access a wealth of data relating to buyer purchasing habits via the new smartphone payment options – something to consider when planning out social media strategy.