If you're thinking that mobile payments - or paying by phone - is just a fad for millennials trying to keep a phone in their hand longer, think again.
While some argue that mobile payments are a needless technological advancement, they have surprising benefits for both restaurants and their guests. Sure, it's convenient, but there are also added security benefits and quicker transaction speeds compared to other payment processors. Let's go over the fundamentals of mobile payment for restaurants and why yours shouldn't brush it off so easily.
Consumers are acutely aware of how easily their sensitive information can be compromised, so they're more cautious than ever. While many mobile payment users are excited about the technology and incentives, such as rewards and discounts, they're hesitant, too. More than 70 percent of millennials, Gen Xers and baby boomers are worried about identity theft and loss of funds from using mobile payments.
Some mobile payments are using the near field communication (NFC) chip technology, which offers a higher level of security because no card information is exchanged. This eliminates many fraud concerns.
Wi-Fi supports multiple connections, and while they do require configuration, merchants can use as many mPOS devices as they wish. While the PIN pads themselves consume more power, they can transmit data at a rate of 54 megabits per second, a feature that can be particularly useful in high-volume businesses.
Merchants can also connect multiple Wi-Fi pads to a single POS terminal without worrying about man-in-the-middle or denial-of-service attacks. In order to access the network managing the mPOS assets, customers need to enter a password for that network. Usually, it's best practice to have a separate network for consumer use.