The Impact of Accepting Credit Cards and Mobile Payments

  • 517 views
Uploaded on

Personal finance experts have long claimed that paying electronically leads us to spend more money. The ease, convenience, and intangibility, they say, all make us more likely to overspend, which for …

Personal finance experts have long claimed that paying electronically leads us to spend more money. The ease, convenience, and intangibility, they say, all make us more likely to overspend, which for a business owner looking to increase the revenue generated by each customer is a very good thing. In the last few years, studies have confirmed this belief and highlighted the benefits for merchants that take advantage. Learn how accepting credit cards and mobile payments can impact your business and increase sales today

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
517
On Slideshare
0
From Embeds
0
Number of Embeds
2

Actions

Shares
Downloads
4
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Impact of Accepting Credit &Mobile Payment vs. Cash Only
  • 2. Personal finance experts have long claimed thatpaying electronically instead of with cash leadsto spending more money. The ease,convenience, and intangibility, they say, all makeus more likely to overspend. In the last fewyears, studies have confirmed this belief andhighlighted the benefits for merchant who takeadvantage.
  • 3. This presentation explores the bottom-lineimpact of accepting credit cards(http://merchantwarehouse.com/credit-card-processing) and mobile payments(http://merchantwarehouse.com/mobile-payments) instead of cash only.
  • 4. Spending Rises with Credit CardAcceptanceAccording to the Journal of ExperimentalPsychology, McDonald’s saw its average orderamount rise from $4.50 to $7.00 after takingcredit card payments.• Order size increases of up to 40% are possibleafter merchants accept credit cards for thefirst time.• Shoppers spend 12-18% more when usingcredit cards instead of cash.
  • 5. The Mobile Payment OpportunityMobile payments offer the same frictionless andconvenient payment experience as credit cards.• 20% of 2012 holiday sales were made throughmobile devices.• Mobile payments are projected to rise from$47.2 billion in 2011 to $998.5 billion in 2016.
  • 6. A Practical Example of Before andAfter Cash-Only PaymentsAssuming you own a small convenience store in yourhome town and project a modest, average order sizeincrease from accepting credit and mobile:• Before– Orders Per Day 200– $15.00 Current AOV– Average Daily Revenue $3,000• After– New AOV After Credit/Mobile $18.00– New Average Daily Revenue $3,600That’s the difference of $90,000 versus $108,000 inmonthly sales!
  • 7. Accepting credit and Mobile Payments is nolonger a luxury. it is a convenience yourcustomers demand and a sure-fire sales boosterfor your business.
  • 8. Sources:Journal of Experimental PsychologyThe Money Answer BookYankee GroupIE Market Research
  • 9. Learn more at http://merchantwarehouse.com