Payment processing on your smartphone!

Everyone has one of these smartphones now… whether it’s Android or iOS there’s a huge market for these phones and a huge marketplace for applications, or apps, on these phones. From apps that make fart noises to apps that will monitor your sleep pattern… there are apps for everything!

Today, there are many apps out there that provide payment processing services. You’ve got the common banking apps that allow you transfer internally to the bank and apps such as the Paypal app which allows you to paypal funds from your smartphone. Then there’s also apps that will allow you to input credit card information and process it using your cell service.

Some of the latest advances in this arena involve a card swiping device that connects to your phone and syncs with the respective app to process payments. Buyer beware though… these services typically have higher rates than a normal processing service. Even though the initial setup and hardware may be free – depending on how much you use it, you may end up paying more in the long run.

You may ask yourself well why do I need to process payments wirelessly? Well, think of it this way… you’re at a tradeshow selling your goods or services but you can not process credit card payments in real-time… this becomes a problem. As a small business owner this could give you the competitive edge that you need to get those additional sales.

These services are great for small business since they offer little to no upfront costs and significant return. So you don’t have to take out a loan just to afford your payment processing device. Another feature of these services is they offer quick payouts, some as soon as next day payouts deposited to an account of your choice. If you’re concerned about security make sure to do your diligence in finding the correct app. Most apps offer the same type of security you’ll find on the web for processing transactions. Look for the PCI compliance and verification by an independent company such as verisign.

Long story short… for small businesses something like this just makes sense. You may pay .5% higher than you would pay for other payment processors but you’re avoiding a potentially considerable upfront cost – saving your capital for investment later. You’re also leveraging great convenience in the smartphone app and the payout schedules.

As always consult a professional before making decisions such as these. Consult a financial advisor and or business accountant in making these decisions.