Q&A: Looking at the Future of Mobile Payments Technology

When it comes to accepting credit card payments, businesses have fewer excuses to say no to customers. With a merchant account and a device that plugs into most mobile phones, accepting plastic as a form of payment is just a swipe away.

I recently spoke with Kudos Payments VP of Sales and Marketing Gene Schenberg about mobile payments, selling during the holidays, and the year ahead.

Kudos Payments offers a free account to merchants with a transaction fee of about 2.7 percent. The card reader device, which plugs into most smartphones, costs $99.

AllBusiness: What is Kudos Payments for Mobile?

Gene Schenberg: Kudos Payments is a "point of sale in a box: mobile credit card solution for small businesses. With a terminal that plugs into Android, BlackBerry, and Apple smartphones and tablets, Kudos turns mobile devices into affordable credit card terminals. A free download of the Kudos app with POS software and an approved (free) merchant account is all a user needs to start accepting credit card payments. Further, with end-to-end encryption we offer the most security on the market for your sensitive information.

AllBusiness: Who is Kudos Payments aimed at?

Gene Schenberg: Kudos is made for any small or micro business looking to take payments on the go or at a cheaper rate than traditional credit card terminals. From Girl Scouts to bands on tour to massage therapists, Kudos is a simple way to take credit.

AllBusiness: How do merchants get an account set up?

Gene Schenberg: When you sign up for Kudos Online, you will be contacted by a Kudos customer support representative via email who will provide you with the steps you need to complete registration:

You will be emailed a link to an online application for your merchant account. After completion of the application, Kudos' underwriters will perform a credit check. Once your account is approved -- usually within 24 hours -- we mail you your hardware and instructions on loading the software onto your smartphone or computer.

AllBusiness: We're knee-deep in the holiday season, is it too late to get an account going?

Gene Schenberg: Most accounts can be approved in one business day if they are submitted with required documentation. If you require a rush approval, please contact our Kudos customer service and we will try to arrange something to meet your needs. We are currently running a free giveaway for charities and non-profits to boost donations, so we are ready for a holiday rush.

AllBusiness: What advice do you have to merchants to facilitate transactions and keep data secure?

Gene Schenberg: Use Kudos! With our SmartSwipe technology in the terminal, user information is encrypted before it even reaches the phone or internet. No matter what product you choose, potential mobile merchants should make sure that they select an acceptance kit that meets PCI compliance standards and then some. You can never be too careful.

Do your research. If a product has a history of getting hacked, that should be a red flag. Kudos offers you the ability to email receipts and receive professional reports and statements, so keep all of those safe as well. Never save it on your device or leave it where someone else might have access to it.

AllBusiness: What should merchants be thinking about for 2012 as far as mobile transactions?

Gene Schenberg: Mobile payments are the way of the future, both for businesses and consumers. Merchants do not want to be left behind. The market will only grow, so it will be more important than ever to find the product that is right for your business and your consumers. More and more, customers have come to rely on quick, flexible and convenient payment options and you want to be able to deliver.

You get what you pay for, as they say, but you should be able to find an option that saves you money with transparent fees -- you shouldn't have to pay monthly or ongoing fees, let alone discover after the fact that there are hidden fees. You also want to make sure you are protecting yourself and your customers with the highest standard of security measures. Kudos Payments will have lots of exciting news in 2012, so it should be a very fun and interesting time in the mobile transaction market.