How the Smartphone Economy Influences Payment Solutions

If you've seen Comedy Central's Broad City, you know the acronym "PKW." It stands for "phone, keys, wallet" — the three things you need every single time you leave the house. Forget one of them, and your entire day might end up going completely off the rails. 

You might feel disoriented without your keys or wallet. Getting home after a long day and realizing you're locked out is never fun. And no one will serve you that happy hour cocktail if your ID is stuck at home. 

But the truth is, our phones might be the most essential important of all. After all, our smartphones contain our lives. Entertainment, work, scheduling and messaging all coexist on our devices. Without them, we would simply feel lost. (That's what happens when you don't have a device equipped with GPS!) 

This so-called smartphone economy has transformed payment solutions, too. From banking apps that scan our thumbprints to AR-powered shopping apps, technology is changing. As the old saying goes, businesses can adapt — or die. 

Read on to discover what your business can learn about payment solutions from the latest smartphone trends. 

How the Rise of the Smartphone Economy Impacts Payment Solutions

First of all, what is the smartphone economy? The phrase has plenty of big implications. 

For our purposes, you can think of it as the rise of on-demand apps. When Uber launched its ride-sharing service, it also inspired thousands of imitators. Today, you can use apps to conjure up everything from Thai takeout to a virtual check up over video chat. 

The avalanche of new apps has rewritten customers' expectations for mobile shopping. 

Consider the last time you called a Lyft. The app gives you plenty of user-friendly options. You can choose whether to type in your address, or use GPS to drag and drop a virtual pin. The Lyft app stores your payment information, so you never have to re-enter it. (If you use separate cards for work and home, you can even toggle between them with a tap of your finger.) And if you have any coupons, the app will probably prompt you to apply them—no confusing codes required. It's easy to get used to this simplicity. 

Now more than ever, customers expect check-out experiences that are:

• Able to deliver greater convenience
• Easy to figure out
• Personalized to their preferences
• Flexible in the payment options they offer
• Secured by encryption or other means

Your business can emulate these best practices by adopting modern payment solutions. Whether customers access your site on desktop or mobile, checkout should be a user-friendly breeze.

Businesses can even take advantage of apps themselves. Purchasing a mobile card reader is more affordable than bulky traditional hardware. You can even adopt an app-based payment solution that will help you win sales whether they occur in a store, online or on the road. 

Payment providers that offer an app make it easy to check on transactions in real time. You'll always know exactly where your business's finances stand.

Customers Want Instant Payment Solutions

If there's one theme to the smartphone economy, it's that our pace of life is accelerating. Looking to save money? A coupon app can help you score the best deals. Splitting the bill at a dinner outing with friends? You can send money — or get paid — through Venmo or Cashapp instantly. 

These experiences are impacting what customers expect from payment solutions. If a checkout is too long or complicated, customers might end up abandoning it in frustration.

Common payment pain points include issues such as:

• Sluggish loading times
• Confusing page layouts
• Doubts about security
• Inability to review a purchase before completing it

Each of these factors creates needless friction. (That's the term user experience (UX) designers use to describe sticking points in a design.) 

To keep everything streamlined, look for a payment solution that gives you options. Your payment processor should be able to accept payments in-store, online and through mobile devices. 

As customers embrace new smartphone features, fast and flexible payments are the way to go. 

Look for Future-Focused Payment Solutions

These smartphone-driven trends might feel familiar. But what comes next? If you want to keep pace with shifting technology, you'll need a payment processor that can keep you on the right track.

So, what will payment solutions look like in the future? As hackers grow more sophisticated, security will continue to be a top concern. Cryptocurrency like Bitcoin and Ethereum may gain greater traction. Convenient, safe digital wallets like Apple Pay can also shield customers' personal information. 

Delayed payment programs might also become more popular. These integrations allow customers to purchase an item right away, then pay off the cost in installments.

You might even want a loyalty program that lets customers rack up — and spend — rewards. 

The bottom line: Don't settle for a payment processor that's complacent about technology!

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