At Pineapple Payments, we’re big believers in mobile pay technology. Mobile payments are one of the fastest growing sectors in the fintech industry, with more and more businesses realizing the benefits of getting on board. While we’ve discussed mobile payments in a lot of our blogs before, today we’re focusing specifically on how going mobile will benefit not only your customers, but your bottom line.

Ease of Purchasing

Last week we explored the importance of convenience in payment processing. This convenience factor is a key element of why going mobile is great for your business. The easier and more convenient it is for consumers to spend money, the more they’re willing to spend. This difference is well-documented when it comes to paying with card as opposed to cash. The most frequently cited study conducted by Dun and Bradstreet found that consumers spent 12-18% more when they paid with card than when they paid with cash.

This trend is only further exaggerated with mobile payments because it makes spending money even easier. Cash, logically, is the least convenient and therefore results in the lowest amount spent since you physically count and then hand over your money. This gives ample time to pause and consider if you actually want to part with your hard-earned cash. Card involves a simple swipe or chip insertion. There’s still time to reconsider, but it doesn’t feel as concerning since you’re not counting out bills. That moment of truth comes later when you check your statement. Mobile is even easier, with a simple tap on a console or swipe in an app. This ease of purchasing is generally believed to be the result of consumers failing to fully grasp that paying with card or mobile uses “real” money.

“Real” Money vs. “Digital” Money

Despite the fact that many consumers have been shopping with cards almost exclusively for years now, there is still a general disconnect between the act of paying and the realization that said payment involves actual money. This goes beyond the ease of swiping; consumers don’t generally think of the money being spent because they aren’t physically counting and watching it leave their possession. This reflects in the vast difference between what is spent with cash vs. card at any business. McDonald’s, for example, estimates that the average order when paying with cash is only $4.50, whereas card transactions average $7.00 each.

Mobile payment furthers this disconnect since consumers aren’t even pulling out a card. With a few taps on a screen, customers are able to find and order whatever their heart’s desire.

Benefits over Cost

Adding to this ease of ordering is the psychology behind how consumers view their purchases when using cash vs. card or mobile. Paying with cash lends itself to considering how much an item is needed and if the cost is worth the value. Paying with card lends itself to considering how much use an item will get used and how it will enhance a person’s life. In other words, it’s easier to convince yourself that something will enhance your life despite the cost when you’re simply swiping a card.

This convincing is even easier when paying over mobile. For example, ordering ahead through Starbucks’ app means you skip the line, which can be a deterrent for a lot of people. You also pay using a pre-loaded gift card so the weight of the cost isn’t as much in focus. This means consumers are more likely to impulsively decide that the $5 latte is worth the cost, since it’ll give them a boost of energy, as opposed to standing in line, staring at the prices, and counting out cash for what is arguable an over-priced cup of coffee.

The Bottom Line?

Simply put, the more streamlined the process of paying becomes, the less time to reconsider and the more consumers are willing to spend. Mobile payments are the current high-standard for ease of ordering. The more mobile-friendly your business, the easier it is for customers to buy and therefore the more money they will spend at your establishment.