In this week’s blog we are going to discuss the adaption and diffusion of innovation for entrepreneurs. In this context, I choose to do a small research on mobile payment terminals such as Payleven and iZettle. They are still relatively unknown in the Netherlands whereas ‘normal’ payment terminals are of course very well-known and adopted by almost all the shops in the Netherlands.
So what is the difference between a mobile payment terminal and a normal payment terminal? Well, mobile payment terminals are very cheap and you don’t have to pay a monthly subscription like normal payment terminals for instance, and they also need less space. This innovation has made it possible for small time entrepreneurs to get a payment terminal as well. Like Payleven mentions: in this way, you will never have to say no to your customers again. In this manner, you could describe this innovation to be a service innovation.
Considering the mobile payment terminals as a new innovation, they are still in the early adopters (Rogers, 2003) phase. If you consider them just to be payment terminals, they would fall in the Laggards phase as described by Rogers (2003), since almost all Dutch shops have a payment terminal.
To do some small research on the adoption of mobile payment terminals, I did three small interviews at two local barbershops and a small beauty salon. All of these salons consist of one owner without employees. The beauty salon owner uses a mobile payment terminal from Payleven and acknowledges the fact that she does not want to say no to customers who don’t have cash, and finds the small investment she has made in getting a mobile payment terminal definitely worth her money. This would make her an early adopter, since according to her – a lot of beauty salons don’t accept cash.
The two local barbershops I interviewed both had never heard of a mobile payment terminal and were very excited and interested when I told them about the possibilities. Both of them had done some research at their bank, but they rejected the 45 euros per month fee the banks want for their payment terminals. Since with mobile payment terminals you only pay approximately 50 euros for the terminal, and afterwards you only pay per transaction (2.7%), this is a very wanted service for small entrepreneurs.