One of the key components of building and running a successful private label supplement company is offering affordable, reliable payment processing methods. The credit card processing industry has been providing services to the supplement industry for decades, and online solutions further streamline sales in the virtual world.
Credit cards remain the leading payment method for selling private label supplements. In 2016, credit card payments overtook debit cards as the top payment method for all products, according to the U.S. Consumer Payment Study.
The following is an overview of how current changes and new credit card processing industry trends shape the future. We’ll also look at how this evolution could impact the vitamin and supplement industry now and going forward:
The Influence of Millennials on Supplement Contract Manufacturing
The millennial generation are in their early 30s and quickly becoming a target consumer base for vitamin and supplement companies. They are known for being educated, tech-savvy and discerning about their finances. While they resist carrying debt, some still do use credit cards to make purchases. However, many favor payment processors and online services that are easily accessible from their mobile devices. Supplement companies should consider offering these innovative digital alternatives as well as traditional credit card processing.
Payment Apps
Consumers can now use payment apps on their smartphones to process credit card payments. Some examples are PayPal, Square Cash, LevelUp, Venmo, ClearXChange and Circle. Facebook also offers Snapcash for transfers using Facebook Messenger.
Mobile Wallets
Mobile wallets, which utilize near field communication and Bluetooth low energy, are also popular with
Millenials and younger people. Samsung Pay, Apple Pay and PayPal’s Beacon and iBeacon are some examples.
They allow the user to simply hold their mobile device near a credit card terminal for fast, convenient payment. If you have a brick and mortar supplement store, this could be a high-tech addition to your payment options. This method is secure and has lower fees than other payment processing options.
Cloud-Based Systems
Companies like Due, ChargePass and Square allow credit card processing both in-person and through an online portal. These options allow for both credit card terminals and mobile card readers. These systems also allow for sales and inventory tracking as well as worker performance assessments. The cloud gives businesses easy access to this information from anywhere at anytime.
"Selfie" Payments
Some companies allow for the scanning of customer credit cards by snapping a cell phone photo of it through an encrypted process. Identify Check Mobile by MasterCard allows payment verification through snapping a selfie.
The Future of the Credit Card Processing Industry and Supplement Industry
According to CRN (Council for Responsible Nutrition), over two-thirds of U.S. adults – around 150 million Americans – take at least one dietary supplement and spend a total of around $121.6 billion annually. The nutraceutical industry is robust and it continues to grow and thrive. Public awareness and interest in health and wellness is extremely high and continues to grow, fueling demand for high-quality vitamins and supplements.
When it comes to both the credit card processing industry and the supplement industry, consumers are looking for quality, convenience and reliability.
Modern innovations in the payment processing industry have brought the technology to new levels. Vitamin and supplement companies should take full advantage of these options to elevate the nutraceutical industry and bring the very best to their customers.
Sources:
https://www.nasdaq.com/article/state-of-the-credit-card-processing-industry-for-2017-cm752694
https://www.nutraceuticalsworld.com/contents/view_online-exclusives/2016-06-10/supplement-industry-contributes-122-billion-to-us-economy
