The Simple Guide to Mobile Credit Card Processing (Android + iPhone)
Accepting credit card payments is crucial for businesses today, whether through mobile credit card processing or traditional terminal payments. According to a 2013 survey conducted by ValuePenguin, credit cards are the most commonly used payment method worldwide, second only to cash. This makes it imperative for businesses to offer credit card processing to maximize profit margins. With the rise of mobile payments, businesses need to stay up-to-date with the latest payment methods to stay competitive and meet customer expectations.
- 40 million merchants accepted Visa credit card payments
- 40 million merchants accepted Mastercard credit card payments
- 42 million merchants accepted Discover credit card payments
- 25 million merchants accepted American Express credit card payments
In the U.S. alone:
- 9 million merchants accepted Visa
- 9 million merchants accepted Mastercard
- 9 million merchants accepted Discover
- 6 million merchants accepted American Express
Credit card payments have been a popular method of payment for several years, and with statistics like these, it’s no surprise that they continue to persist in 2023. The dominance of credit card transactions is expected to continue for years to come, despite the emergence of alternative payment options such as Square and PayPal.
What about mobile credit card processing?
Credit card payments have undergone significant changes in recent years. The widespread adoption of online credit card processing and mobile credit card processing, also known as phone credit card processing, is a clear indication of the shift. Businesses conducting any form of online transactions are expected to accept online and mobile credit card payments, even if customers don’t pay using credit cards online. A 2017 study by TSYS, which polled 1,000 consumers, found that:
- 10 percent of consumers indicated that they had loaded a credit card into a mobile wallet accessible or app on their phone to make purchases.
- 9 percent of all consumers had loaded up a debit card as well.
Although the percentages may seem low, it’s important to consider the context of the study. Conducted in 2017 with a sample size of 1,000 people, mobile credit card payments have significantly increased since then. A more recent study by the Bureau of Economic Analysis found that consumers worldwide spent a massive $14.2 trillion in just the fourth quarter of 2018. This highlights the increasing importance of mobile credit card payments as a global payment method.
- Department store sales fell by 3.3% compared to the previous year
- Online retailers saw a 3.7% increase in spending compared to the previous year
- The average American spent $60,060 on consumer expenditures in 2017*
Will mobile credit card payments continue to increase?
Mobile payments have come a long way since 2014 when only 28% of smartphone users and 22% of all mobile phone users made mobile payments, according to a 2015 US government survey. As of 2019, the mobile payments industry is booming and is expected to reach $808 billion by the end of the year. Notably, well-known mobile credit card processing solutions like Square and ROAMPay have contributed to this growth. Even though mobile payments have gained popularity, a study by JP Morgan Chase revealed that only 36% of merchants currently accept digital wallet payments. If you accept mobile credit card processing, you’re ahead of the competition since only 25% of small businesses and 56% of large businesses accept mobile wallets. Therefore, accepting mobile credit card payments in 2023 is a must-do for any business looking to keep up with the latest trends and meet customer expectations.
How many types of phone credit card processing are there?
Contrary to popular belief, mobile credit card payments have been in existence since the 1990s. However, it wasn’t until the 21st century that they gained popularity. Today, there are four main types of mobile credit card processing available:
Mobile e-commerce:mCommerce, also known as mobile commerce, is a prevalent form of mobile payment processing. It involves making online purchases using a mobile device and paying with a credit card, often through major e-commerce platforms like Amazon. This method is widely used and is likely the most common type of mobile payment processing by transaction volume.
Mobile peer-to-peer: Peer-to-peer transactions or P2P payments are a type of mobile credit card processing that allows you to send money to friends or family through apps like PayPal or Venmo. Although it may not be immediately obvious, P2P transactions have become a common method for mobile payments. These transactions can be made with credit cards and are considered a form of mobile credit card processing.
Mobile credit card swiping: Mobile POS is a form of credit card processing that is conducted using a mobile device, such as a smartphone or tablet, as opposed to a traditional credit card terminal. With the use of a mobile credit card processing device like Square, merchants can accept payments from anywhere.
In-store mobile payments: In the world of mobile payments, mPOS or mobile point-of-sale payments are gaining popularity. This type of payment involves scanning a phone or smartwatch to pay using a mobile wallet instead of swiping a card. Though not as common as traditional mobile credit card swiping, more merchants are beginning to offer this option to customers.
What about iPhone credit card processing?
As a merchant considering mobile credit card processing, it’s important to consider the prevalence of iPhones. According to a Q3 2018 Statista report, iPhones continue to dominate 12 to 18 percent of the global smartphone market. In the United States, a Kantar report found that iPhones still hold a significant market share of 32.8%. With such a large portion of consumers using iPhones, businesses that accept mobile credit card payments via iOS devices may have an advantage over those that do not.
In recent years, iOS has been regaining some market share from Android, making it a more attractive option for those considering iPhone payments. If you’re looking for the best iPhone credit card processing solutions, aside from NFC-based Apple Pay, CardPaymentOptions.com has ranked the top options for you to consider.
The Best iPhone Credit Card Processing Solutions
- Fattmerchant – Best Option
- Host Merchant Services (HMS) – Great for E-Commerce
- Shopify – Easy Sign-Up
- Square – For In-Person Credit Card Swipes
- PayPal – Wide Consumer Adoption
To be honest, iPhones are no longer the dominating force they once were. In recent years, another mobile OS has taken over and become the undisputed king…
What about Android credit card processing?
Since the fourth quarter of 2010, Android OS has been the leading mobile operating system worldwide, according to Statista. It overtook the then-leading mobile OS, Symbian, and has since maintained its position as the undisputed king of the mobile OS market. Android continues to dominate the global market share, as per the latest data available:
Android dominates the mobile operating system market in the United States, accounting for 61% of all mobile OS in Q3 2018, as reported by Kantar. Android’s strong market share continues to increase, while its competitors’ market shares fluctuate or decrease yearly. Therefore, business owners need to ensure that their mobile credit card processing solutions are Android-friendly. FitSmallBusiness has listed the best Android credit card processing solutions as follows:
The Best Android Credit Card Processing Solutions
- Square – Best Overall
- PayPal Here – Wide Consumer Adoption
- Shopify – Real-time inventory updates
- Cayan – Lower Processing Fees
- Intuit GoPayment – QuickBooks Users
- Fattmerchant – High-Volume Sellers
Mobile credit card processing solutions for Android devices come with a range of pricing options. Basic credit card readers that only support swiping can be obtained for free, while more advanced readers that support all types of cards can cost between $29 to $60.
Okay, but what is my best option?
If you’re considering mobile credit card processing solutions, you’ll be happy to know that there are some top-rated options available in 2019. Whether you’re looking for iPhone credit card processing, Android credit card processing, or a solution that works across all devices, there are a few standout choices. FitSmallBusiness has compiled a list of the six best mobile credit card processing options for 2019:
- Square – Best Overall
- Dharma – Lowest Processing Rates
- Shopify POS – Multichannel Businesses
- Chase Merchant Services – Retailers w/ Chase Business Accounts
- PayPal Here – Cost-Effective (if full POS isn’t required)
- QuickBooks GoPayment – Businesses That Use QuickBooks
According to Fundera, the 5 best mob credit card readers are:
- QuickBooks GoPayment
- PayPal Here
- Shopify POS
Two reviewers have their differences of opinion, but they have some mobile credit card processing solutions in common:
The 4 Best Mobile Credit Card Processing Solutions†
- Shopify POS
- PayPal Here
- QuickBooks GoPayment
†Note that these are subjective rankings, and your own experiences may vary.
Don’t waste money on any credit card processing
Mobile credit card payments have become a ubiquitous payment option, offering convenience for customers and increased sales for merchants. However, the significant cut of up to 3.5% per transaction taken by mobile credit card processing can negatively impact profits. Fortunately, a cash discount program offers a solution for brick-and-mortar small businesses to bypass most credit card processing fees while still accepting credit card payments in-store. With our help, setting up a cash discount program can be done in under a week. For more information, click the button below or call us at +1 (929) 293-1800.