Mobile Payments to Reduce Costs Associated with Cash Payments
mPayment technology has the potential to reduce the cost of sales for corporations by up to 20 per cent, according to a whitepaper from Mobile Money Consulting.
The whitepaper notes that the cost of collecting and distributing cash is a major overhead for many corporations throughout the world, and can be as high as 20 per cent in some markets. The emergence of mobile technology offers corporations an opportunity to eliminate much of that expense, reduce inefficiencies and enable the mobile payments ecosystem from the top down.
Companies who stand to benefit most are those operating in emerging markets, according to research in the paper, since cash can amount to as much as 75 per cent of corporate receivables. Even in developed markets, industries across the board are set to benefit from the increased integration of mobile payments to replace cash and thus help reduce overhead.
Additionally, the paper discusses the potential opportunities of constructing a “wider mobile payments ecosystem from the top down” in order to pass on savings gained through mPayments across the supply chain.
“Mobile technology is revolutionizing financial services the world over,” the paper says. “Often it is consumer-led, whether it is P2P transfer for the financially excluded in emerging markets or smart-phone enabled merchant payments in more developed markets. Corporate mobile payments offer major potential for the business sector.”