Recent reports from CPMG and CFO research show that CFOs are bouncing back from the recession with increased spending on technology, and the buzz around mobile payments has reached deafening levels. Since its foundation in 2009, Square, Inc. has topped 4 million global handset sales internationally and now processes over $15 billion in transactions each year.
Financial reporting, corporate governance requirements, and cost reduction initiatives are all reasons why CFOs are more heavily focusing on strong technology. Because of its technological convenience and practical benefits, Square is the leading mobile payment option for businesses everywhere. In a recent interview, Sarah Friar, the chief financial officer of the San Francisco-based company, revealed the various benefits and considerations of using a mobile payment system such as Square.
According to Friar, some of the greatest benefits of using Square include:
- Improved marketing. Aside from being a mobile payment processor, Square also serves as a “wallet.” In other words, marketers and businesses can use this to offer exclusive specials to those who decide to pay with Square, thereby building brand loyalty. For instance, a business can create a virtual punch card or coupon for customers paying with the mobile payment system. Free giveaways are always effective, but they inspire loyalty as well.
- Personalization. Each business can customize Square’s features to meet their specific needs, improving the sales experience for the consumer. This can help negotiate the balance between providing a human touch and being technologically driven.
- Global competition. Though mobile payment is booming internationally, especially in Japan, the United States has been slower to adapt to the technology. Friar says this caution actually improves the staying power of the technology, because the trend is working to become more mainstream and less than a fad.
While Square mobile payments might not be right for every payment, it’s undeniable that CFOs are playing a large role in the budget shift as they pursue growth through technological innovation. CFOs should realize their role as strategic information leaders and use that position to leverage technological platforms for financial and operational growth. With strategic planning, CFOs can help their organization embrace innovative technology while continuing to create shareholder value for their company.