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Why Mobile Payments Aren't Gaining Traction With Small Businesses

This story appears in the October 2015 issue of Entrepreneur. Subscribe »

A year after the launch of and five months into 's Android Pay service, it seems like have finally caught fire with the public. Thousands of banks and retail giants have jumped onboard, yet —which account for more than 90 percent of businesses in the country, according to the U.S. Census Bureau—are so far responding with a collective meh.

"I would say it's been a fairly negligible adoption rate so far," says Jordan McKee, senior analyst covering mobile payments at 451 Research in . "There hasn't been a tremendous amount of interest given the cost of upgrading terminals to accept NFC payments."

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