The popularity of mobile payment is growing rapidly, with transactions totalling almost £1 billion in 2017. However, for SMEs to tap into the market, they need the tech and this comes at a price. Alternative finance can help.

According to the Worldpay, in-store contactless payments made using a mobile device were worth more than £975 million last year. This figure represents a colossal increase of almost 330% compared with 2016, which suggests that mobile payment will very shortly be a billion-pound market.

The technology introduced by Apple, Google and Samsung is becoming increasingly common on the high-street and at out-of-town shopping parks, especially as major grocer and retail players, such as Tesco, launch their own branded mobile payment systems as they look to secure consumer loyalty and sales.

Just as the tech is important to big businesses, mobile payment is also a development that smaller retailers can’t afford to ignore. It is clear that its use is set to continue to grow rapidly, in particular among the key young adult demographic, and with this expansion in mind and given the current market conditions, accessing this payment sales stream is vital.

Of course, the principal barrier to plugging into this billion-pound market is the cost of the tech. While larger organizations can absorb the outlay relatively easily, it’s a different story for smaller retailers that already face an array of demands on their capital and cashflow. These demands include costs relating to cybersecurity and data protection, and the growing popularity of mobile payment only puts more pressure on businesses to invest in these areas. The bills keep coming for small business owners.

This is where alternative finance can help. Invoice finance, asset finance, peer-to-peer lending and crowdfunding, and the accessibility, affordability and flexibility they offer, are providing a lifeline to SMEs as traditional lenders continue to take a cautious attitude to lending.

This is how a small business in Sussex used peer-to-peer lending, through a commercial finance broker that specialises in alternative finance, to raise £20,000 to purchase new equipment.

Mobile payment may be relatively new now but it will be the norm before long and retailers of all sizes need to embrace this and other contactless payment systems. Alternative finance can help businesses ensure they access the tech and the billions of pounds that will be spent using it.

To find out more about A&T Business Associates services, contact Tony on 01903 602211 or tony@atbusinessassociates.co.uk.