When looking to the mobile payments space, many will notice that there are a lot of companies competing for the client’s needs. This is great from a customer’s point of view as more competition is always better. Of course, it does beg a serious question; why are there so many new entrants in the mobile payments space? Here are three reasons why this is currently the case.
A huge need: Now, most people want to receive money on the go. This is true whether one runs a small business selling shoes or a large company offering car repair services. Coupled with the fact that contractors and other small business owners want this capability, it is no wonder that mobile payment companies are sprouting up all over the place. This should continue to grow as more people will demand this vital service.
Leave old systems: In the past, a store owner would have to sign up for a POS system. This would include a large computer and cash register. While effective at the time, it is now overkill. Instead, people want a fast, easy and workable solution. Fortunately, with so many mobile providers, one can accept credit cards with ease. One must fully understand that merchant accounts are always changing, and this had led to a lot of new providers in the industry.
Easy entry: With a programming team and some hard work, a company can set up their own provider. This is much different than 10 years ago when a company would have to hire a full-time staff and set up their own offices in multiple cities. Now, with a website and a few key people, one can set up a mobile provider to accept credit cards. Simply put, when looking for a business that is easy to start, many look to offering this solution to small business owners all over the world.
Without a doubt, times are changing. In the past, it was extremely costly to set up a provider to accept plastic. Now, with a little cash and some hard work, one can provide comprehensive solutions to entrepreneurs all over the world. This will only increase as the barriers for entry will go even lower in the near future. Of course, given enough time, there will be consolidation as some firms will not have what it takes to succeed while others will offer the best services to excited small business owners.