Beacon technology has great opportunities that offer a broad potential to enhance consumers’ experience. In this paper, we explore the advantages, disadvantages and challenges of using and implementing beacon technology. The qualitative research materials were gathered by reviewing reliable articles, reports and applications. The number of software applications (“Apps”) that are being analysed is limited to 50 applications that operate on iOS and Android platforms. The aim of the research is to provide a clear insight into beacon technology and the opportunities it offers to improve user experiences on mobile devices. The findings indicate that beacons’ interaction with mobile applications (implementing beacon protocols) enhances users’ experience and satisfaction by enabling indoor navigation and proximity navigation. However, there are several challenges, such as privacy, security and applications’ usability that have caused users’ dissatisfaction.