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Mobile payments could help small business

December 24, 2011

There are a large number of small businesses that don't accept credit card payments due to high merchant services fees.

There are a large number of small businesses that don’t accept credit card payments due to high merchant services fees. However, as technology continues to develop around the country, some smaller retailers have been using mobile payment devices due to its lower cost and ease of installation.

Entrepreneur magazine reports that many industry experts say that the near field communication payment system is likely to gain popularity in the years to come.  

“At the beginning [of 2011], we asked people how long it would take for phone transactions to surpass credit cards, and most said 10-plus years,” said Mark Herrington, executive vice president of global product management and innovation at First Data, in an interview with the news source. “Now it’s three to five, because it’s become clear that consumers, especially younger generations, are passionate about mobile phones and make shopping choices based on how they want to pay.”

While it continues to gain traction, some people are still uneasy about security of the payment method. In a report by KPMG, four out of 10 respondents said that they were worried about keeping data secure during the process.

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