Mobile payment apps for small businesses allow you to send and receive money without having to enter your card information. They’re fast and easy to use, and can be linked to your bank account or funded directly.
Using mobile payment apps can be a great option for your business. However, it’s important to understand the advantages and disadvantages of these apps and how they work.
Keep reading to learn more about using mobile payment apps for business transactions and whether or not it’s right for your business.
Look at Your Business’ Options for Mobile Payment Apps
Many popular mobile payment apps have features that are tailored specifically for businesses. If you’re thinking of using these apps for work, familiarize yourself with your options and see what works for your business.
Some of the most popular platforms include, but are not limited to:
Pros and Cons of Using Mobile Payment Apps
There are a few advantages and disadvantages of using mobile payment apps for your business. Before you make the decision to start completing transactions with an app, weigh out the pros and cons.
Pros
They’re quick and easy. Writing a check or finding an ATM can be inconvenient. With a mobile payment app, all you need is a cell phone. It only takes a couple seconds to pay someone by simply typing in their name and the amount you’d like to pay them.
Easily view your transaction history. Sometimes it’s hard to keep track of all the payments you’ve sent or received. Mobile payment apps make it easy to view and search for all past transactions.
You can schedule payments. Scheduling payments ahead of time is a great way to make sure you stay on top of payments. You can easily set up future/recurring transactions with select apps so you never miss a payment.
Cons
Some apps have transfer limits. A few apps have limits for how much money you can transfer at once. Make sure you research the limits that different apps enforce so you don’t have to send your payments as small parts instead of all at once.
It’s easy to make a mistake. Typing the recipient’s name and transaction amount instead of writing can lead to error, and it’s possible to send the wrong amount or send a payment to the wrong recipient.
Money transfer scams are common. Quick transfer of funds enable scammers to trick people into sending money to a person pretending to be someone in your network. In this situation, it is almost impossible to get the money back.
Tips for Using Mobile Payment Apps for Small Businesses
There are a few pieces of advice you should remember when using mobile payment apps to ensure easy and successful transactions and avoid scams. Here are some tips:
- Use extreme caution when sending money. A lot of apps have two-factor authentication that can help ensure that the person you’re sending money to is actually who they say they are. Don’t let scammers fool you– you can never be too safe!
- Double check before you press send. Always check the amount you entered and the person you selected to pay. Most payment apps use a username, phone number, or email address to identify payment recipients. Ask your recipient to be registered in the app with the information you intend to use to send them money.
- Consider having your coworker send you a request for payment first. If you’re sending money to someone for the first time, ask that they send a request from their app (if that service is available). This ensures that you’re sending funds to the correct person in the correct amount.
- If the app does not have a request function, consider sending a small test payment to the recipient to confirm it’s the right person before sending larger amounts.
- Know how quickly you will receive your money. Depending on the app you use and who sends you money, you may or may not be able to use money you receive immediately. In some cases, you may have to wait a few days to spend money you receive, even if the money shows up instantly in your app. Look into the time it takes to receive and send money successfully.
Contact HAS for Advice on Payment Apps for Small Businesses
For more information about using apps for business transactions, or for any other accounting advice, contact us today.
One of our experts would be happy to set you up with the best payment option for your business!
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