Innovating the payment process may be a great idea, but any entrepreneur looking to enter the innovative payment processing market should be aware of the following guidelines:
Don’t attempt to fix what is not broken. If your idea causes merchants or consumers to take extra steps to complete a process, are you really selling something that will be worth their effort? Will your customers have to invest in expensive new technology? Will transactions actually take more time than they currently do?
Don’t attempt to solve the problems of the customers. Customers really aren’t looking for new and exciting ways to pay for goods. There are lots of merchants and fewer customers, so gravitate toward the area you can help most expediently.
It’s not about your company. Consumers really don’t care who their payment processor is. Although credit and debit cards aren’t as smart as phones, they do work, so don’t think that flashy technology hardware with your company’s name embossed is the answer.
Go for startups. Big challenges, plus small aggregate numbers equals to big opportunities. Try for lots of small business victories that will eventually add up.
Watch out for standalone wallets.We all know that Square has been successful, but there is little room for digital standalone wallets. Don’t be fooled by one company’s lucky experience.
Don’t build a business on QR codes. Only Japan has seen success with these and even there, scanning phone numbers is becoming a more preferred method.
Stay away from NFC. Those who think NFC is the next best thing may very well be disappointed. NFC checkouts can take longer than credit cards.
Social media is not your savior. No one wants to stream purchase data and platform risk can be a big issue.
Banks are worried about becoming commodities. If you can somehow help them to retain their indispensability, you’ll be a winner.
As in any business, services and service reign supreme. This business is no different. If you want your company to gain customer loyalty, customer service needs to be your main concern.
Watch for Amazon, Google and Starbucks to totally reshape this payment industry. Pay attention to the above guidelines and you can go along for the ride.
Jim Jacques is the President of United Virtual Office, a leading provider of virtual offices for entrepreneurs and small businesses. They entail a prestigious business address in cities across the US, a Virtual Phone Services for answering and forwarding your business calls, courier services and more. Google +