Digitization has not only transformed the way payments are made, but also the approach of carrying out commerce in small or medium-sized businesses (SMBs). This can highly be attributed to the way, the modern-day transactions are carried out. The mobile applications, irrespective of their functions, are narrowed down to a single objective – Make the lives of consumers easier. Fueling to this advancement in the digital space, the mobile payments have done their bit in changing the conventional landscape of the smaller firms. Although the payments are easier to process, a single POS system does not suit the needs of all digital businesses.
Smartphone has been the new wallet for consumers. Additionally, it has been a means to carry out commerce for the small and large businesses. Contemporary times have actually made the world a smaller place by creating its wider outreach. According to a survey jointly carried out by PYMNTS and AEVI, merchants of small businesses agreed that digitization is an essential component to have a competitive edge. It has been a way to make innovation a tactic to enhance the number of sales. But the question remains for the smaller businesses as to how that agenda can be achieved.
The innovation in the functionality of a mobile app has to be devised by keeping various factors in mind. One of the most important factors is the target audience. Since consumers will be utilizing the novel features provided in the app, they need to be considered during the initial stage. The merchants of small and large businesses should carry out a market research on their end users, in order to identify their needs and wants. This can be done in terms of transaction, irrespective of the segment, which will in turn guide them to plan the innovations based on the study.
Loyalty points, discounts, and rewards can be leveraged by the merchants to ensure sustainable relationship with the customers and retain them. However, not all features that are desirous to the customers fit into the budget size of all the merchants. For the deployment of neoteric technological initiatives, the larger businesses can easily get through the budget phase and enrich its application. This is when the businesses need to understand the uniqueness that their business possess and their associated requirements. The features added should reflect this uniqueness of the business and additional features can be discounted. Ultimately, the merchant acquirer can help the merchant differentiate between the pressing need of today and the pressing need of tomorrow.