Take the Lead in Offering Mobile Merchant Services

Community banks and smaller financial institutions are generally much less focused on providing merchant services than they are on their core business of banking, loans, and mortgages. Merchant services typically account for only around 10% or fewer of the services community banks provide.

Those numbers show that most institutions are missing an opportunity: Providing mobile banking options for merchant customers. Merchant services are becoming much more sophisticated as they move beyond brick-and-mortar locations and into the mobile world: Using smart devices for payments, processing, inventory management and control, and marketing.

Mobile is going mainstream. Merchants are adopting mobile solutions to run and grow their businesses. So it’s critical that banks not only grow their own mobile activities, but also support mobile options for their merchants.

That means offering merchant services from a provider that can support upcoming EMV mandates, has PCI-compliant equipment, is on the cutting edge of mobile processing services, and can support merchants’ mobile marketing efforts.

It also means being proactive — not waiting for clients to walk in and ask for merchant services. Instead, review client lists and ask: Where can I cross-sell merchant services? Clients who are processing by traditional terminals now are ripe for education on new options that will help improve their operations and drive business.

Using Veracity to help educate merchants on new devices, requirements, security options, and mobile marketing methods could be a big win for community banks. It’s something a lot of other processors are not going to invest time in.

For merchants, taking advantage of mobile services will drive increased foot traffic and incremental revenue growth. Banks that provide mobile merchant services benefit by adding non-interest-bearing deposits, strengthening ties to business accounts, and increasing wallet “stickiness.”

Overall, proactively promoting mobile processing, management, and marketing solutions with the right processing partner will help to mature bank-merchant relationships and ensure their longevity. In a rapidly changing world, that’s an opportunity that can’t be overstated.

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