Using a smart phone to collect payments from customers is a smart and progressive tactic for small businesses who are looking to both simplify and economize. If you own a small business that travels to different places such as trade shows or farmers' markets, then you know how important it is to have a method for payment collection that is convenient and easily transportable. Without one, you could lose customers whose only method of payment is their credit card.

Even small businesses, such as mom-and-pop stores or barbershops housed in a single location can benefit from the smart phone method scanning credit cards. Over a year's time, this can end up saving tens of thousands of dollars, if not more. Businesses have been moving to the mobile payment system and benefitting from the perks that these systems offer.

Using one of the great new apps: PayPal, Square, or Intuit allows businesses to:

1. It's less expensive. Cut out the pricey fees associated with setting up a credit card service. With one of these apps, you can have an account set up in as little time as fifteen minutes. You also eliminate high fees associated with a point-of-sale system. With a mobile payment provider, you can pay a flat percentage rate or a standard flat fee that is far cheaper than what many businesses have been paying already.
2. Quickness of transaction and payment. Customers can sign and get electronic receipts very quickly, and your business can get paid as quickly as the next day. Small does not have to mean inefficient.
3. Receive important data about your business. Keep track of the trends with your customers and clientele. Find out who is purchasing what and how often they are buying it. Instead of buying another service that provides this information, these apps often come with this feature.

So how do the mobile apps compare to one another? Here is a breakdown of PayPal, Square, and Intuit.

1. PayPal Here: This group has been around the longest so the name has the strongest recognition. PayPal began PayPal Here in March to connect their account users with this service. It reads both checks and credit cards without having to insert a detachable reader (which, to be honest, can be easy to lose if not careful). This might be your best option if convenience is high on your list of priorities. It does not have an app for iPads yet but is fine for regular smart phones. It costs a business 2.7% per swipe and 3.5% (plus 15 cents) for a keyed transaction.
2. Intuit GoPayment: This syncs up with the Quickbooks software for PCs and Macs which is a great timesaver. It also automatically adjusts for local taxes. Be aware that the detachable reader is large, which for a booth transaction (think Farmers' Market or trade show) where space is tight might make for a bit of a squeeze. It costs $12.95 per month, plus 1.7% for swipes and 2.7% for keyed transactions.
3. Square: This is the most popular of the mobile payment devices with over two million users. Its detachable reader device is small and can plug into tablets or smart phones. The app is easy to download and is very intuitive. It can also analyze your business' daily, weekly, or monthly performance, offering important analytics. It offers the chance to set up a reward system for regular customers, and even a phone-to-phone system for customers who do not have their credit cards with them. Once past the initial app, it can become a little more complicated which can possibly create some difficulty when setting up custom features - like sales tax.

A penny for your thoughts!