With the rise of technology, we can now make purchases without having actual cash on hand. Aside from debit and credit card payments, mobile payment systems are becoming a thing nowadays. No need for cash or card, all you need is your mobile phone (which you always have on hand, I’m sure) to do your shopping.
Mobile Payment is a payment service performed from or via a mobile device and in different forms such as SMS Payment, NFC Payment or Payments via a Mobile App.
Walmart, Barclays, Exxon are just few of the business giants who have jumped into the mobile payment system by having their own payment app.
Apple and Google also offer exclusive apps that serve as a digital wallet for you to make your transactions.
Now let’s break down the different advantages of this Mobile Payment Service for both consumers and retailers.
Convenience and Faster Transaction
Customers can make payment transactions anywhere and anytime without having to hand over cash or swipe a card. It saves you a lot of time because it makes the payment process way, way easier since all you have to do is open an app from your phone, scan a code at the register and your transaction is done. No PIN’s or signatures needed.
The mobile payment system also reduces the security risks like getting your money stolen or having your debit/credit card information stolen. The credit card info is stored in the cloud and not on your smartphone so in case your mobile phone gets stolen, the thief won’t have an access to your credit card details.
Because of its convenience, retailers offering mobile payment services will surely attract more customers. Businesses will eventually be able to accommodate more customers as checkout processes speed up. Another advantage (which is a disadvantage for customers) is that business owners will be able to capture impulse buyers who might not actually make purchases if only the traditional payment system was available.
Another great advantage is that credit card terminals from banks charge merchants transaction fees on top of monthly fees unlike mobile card readers or bar-code scanners. This means, the business will have lower costs.