Customer using android watch to Google pay bill - Three Reasons You Should Be Accepting Google Pay

3 Reasons You Should be Accepting Android Pay

Sunday, December 21, 2014

Taking mobile payments at your business

With the rise of mobile payment options, small business retailers like you should make sure that you’re up to date with all forms of digital payments. One such payment method is Google Pay, a popular contactless payment option. Formerly known as Android Pay, Google Pay allows Android smartphone owners to pay right from their phones. In this article, we’ll take a closer look at mobile payments and then give you three reasons why you should be accepting Google Pay at your business. To start, let’s define mobile payments.

What’s a mobile payment?

Mobile payments are a way to utilize a smartphone and turn it into a digital wallet that can hold all of a customer’s credit card and debit card information. Because almost everyone has a smartphone, it can eliminate the need for a consumer to carry around a physical wallet. It’s a convenient way to pay, utilizing near field communication (NFC) to facilitate a payment.

NFC is a technology that enables data to pass from one device to another, granted the devices are close enough together. NFC only works for in-person transactions because of the proximity needed for a successful transaction. As the name suggests, the devices don’t have to touch, making it a contactless method of data transfer.

While accepting NFC payments might seem like you’ll need futuristic technology, it’s surprisingly simple. You’ll need two main things to start accepting NFC payments: a payment terminal that accepts NFC payments and a payment processing plan that accepts mobile wallet payments. 

With the increase in popularity of mobile payments, most payment terminals are now equipped with NFC technology. Your current payment terminal could even have the capability to accept NFC payments, especially if you’ve recently upgraded your system. Once you have confirmed that you have the right equipment, you’ll work with your payment processor to add mobile wallet payments to your plan (if they are not already included). Mobile payments are becoming increasingly standard, so this may already be included in your plan. 

Consumers who utilize mobile payments store their information in digital wallets. These digital wallets are often built into the device as an application, such as Apple Pay or Google Pay. While Apple Pay is limited to Apple devices, both Android and Apple users can utilize Google Pay. For the sake of this article, we’ll focus on Google Pay on Android devices. Let’s take a closer look at Google Pay.

What is Google Pay?

As the name suggests, Google Pay (formerly known as Android Pay and Google Wallet) is a popular mobile payment app that lets consumers pay with their Android phone or smartwatch. Usually, this mobile app comes installed on Android devices, but if not, customers can download it on their phones from the Google Play store. 

Enabling Google Pay means a consumer can pay with either a credit card or debit card that’s uploaded onto their phone. As we mentioned, digital wallets like Google Pay allow consumers to make both in-store and online payments instantly while safely storing the physical card data from card networks like Visa, Mastercard, Discover, and American Express. Digital wallets like Google Pay also use tokenization, which switches a customer's secure credit card information for a string of numbers that only works once. Fingerprint scanners or an iris scanner helps to confirm the cardholder’s identity with a process known as two-factor authentication.

So how does Google Pay work? It uses NFC at contactless terminals to allow for tap-to-pay transactions. Consumers utilize the Google Pay app on their Android devices to activate the NFC payment function on their phones. During the transaction, the data from a customer’s smartphone is sent to a point of sale (POS) system or payment terminal.

Now that you know more about mobile wallets and Google Pay, let’s take a look at three reasons to accept these types of payments at your business.

Reason 1: Convenience

The biggest reason to accept Google Pay is convenience. In contrast to traditional payment methods, mobile payments like Google Pay take much less time to process. That’s because consumers almost always know exactly where their phones are, so it’s fast for them to utilize them at checkout. They no longer have to fumble with their wallets to find the right payment card. Instead, they open up their Google pay app and utilize tap-to-pay at the contactless payment terminal to make a Google Pay payment. 

Plus, for small businesses like yours, getting set up to start accepting payments is quick and easy. Your payment reader or payment terminal may already have the capability to accept NFC payments. And for your staff, taking payments like Google Pay is simple, with very little to do on their end. That’s because your POS or credit card terminal treats mobile payments like they’re any other card-present transaction. That means there are very few snags in the checkout process for your business and the customer. Again, check with the provider of your POS terminal or credit card reader to see if it’s able to read mobile payment methods. Chances are, it is.

Reason 2: Security

The second reason to accept Google Pay is that mobile payments are more secure than other forms of payment. That’s because they add an extra layer of security to transactions. This technological advancement makes payment types like Google Pay as secure, if not more secure, than credit cards. That’s because when a customer pays using Google Pay, the technology includes tokenization to protect the consumer’s actual card data. Tokenization is the process of replacing sensitive card data with unique identification symbols that retain all the essential information about the data without compromising its security. In other words, the confidential information (like your customer’s card number and other credit card details) is swapped for a random string of numbers. The token can guarantee the same functionality of the credit card data while only being useful for one specific transaction. That means that even if a thief were to steal the token, it would be useless outside of the single transaction that just took place.

Furthermore, NFC technology sends and receives data within a very close proximity to the credit card terminal. In fact, it operates within a radius of about 4 cm (1.57 inches) or less. That makes it nearly impossible for fraudsters to steal credit card information from your customers.

Reason 3: Customer engagement

The third reason to accept Google Pay is to engage with and retain customers. With Google Pay and other digital wallets, you’ll give your customers a seamless checkout experience. With their Google Pay wallet, they can even store coupons, gift cards, and loyalty cards to use at your business. This can strengthen their relationship with your small business, and when a Google Pay user knows you accept their preferred payment method at your business, they’re more likely to become a repeat customer.

As you can see, accepting Google Pay at your business is an easy way to attract and retain more customers. From its ease of use to the safety and security benefits, Google Pay can improve your customers’ shopping experience. Plus, for you as a small business owner, merchants are charged no fees for accepting Google Pay. For in-store payments, however, card networks consider Google Pay transactions to be card-present transactions and can charge the merchant a fee of up to 4%.

As digital payments become more popular, accepting Google Pay is one way you’ll be able to meet the demand of your customers and tailor your small business with your customer in mind.

 

Ready to work with a payment processor who can help you accept mobile payments like Google Pay?

Heartland is ready to help.

Heartland is the point of sale, payments and payroll solution of choice for entrepreneurs that need human-centered technology to sell more, keep customers coming back and spend less time in the back office. Nearly 1,000,000 businesses trust us to guide them through market changes and technology challenges, so they can stay competitive and focus on building remarkable businesses instead of managing the daily grind. Learn more at heartland.us.