Mobile Payment Systems Overview: Types, Benefits, and Integration
Smartphones and tablets are the devices that the majority of consumers have at hand at all times. Thus, no matter if you sell your goods or services online or in-store, integrating mobile payments is vital for offering a smooth shopping experience for your clients.
Mobile payment systems allow business owners to better connect with customers, secure sensitive payment data, and increase revenues. Continue reading to find out how your company can reap all the benefits mobile payment systems provide.
What Are Mobile Payment Systems?
Mobile payment systems are services that enable consumers to make purchases via Apple or Android smartphones, tablets, or wearable devices using all major credit, debit, and gift cards, alongside bank account information. Due to their universality, mobile payment solutions are steadily strengthening their global presence and are driving growth in the non-cash transactions field.
Types of Mobile Payments
Mobile payments come in a variety of forms:
- Browser-based payments. Consumers can simply enter their payment details into a checkout form on a mobile version of a website or an app.
- Mobile wallets. Any near-field communication-enabled (NFC) mobile device can become a secure virtual wallet for storing payment information, coupons, and loyalty rewards. Mobile wallet apps, such as Samsung Pay, Google Pay, and Apple Pay enable users to make both in-store and eCommerce payments.
- SMS payments. You can enable your clients to pay for purchases via SMS. All they will have to do is send a message to a specified number. When the transaction is cleared, the sum will be added to the consumer’s phone bill.
- mPOS. Merchants can turn an assigned smartphone or tablet into a powerful point-of-sale system.
- Mobile P2P. Peer-to-peer payment apps, such as PayPal, Zelle, Venmo, or Cash App, make the mobile purchase process simple and fast for shoppers.
Now, let’s take a look at the overview of how these mobile payment methods operate.
How Mobile Payment Systems Works
The operating principle of a mobile payment system depends on its type. The main solutions powering mobile payments are:
- NFC. If your clients are using a mobile wallet, they can simply hold their device over a terminal to complete a payment. The NFC technology embedded in the phone and the terminal enables them to exchange encrypted payment information via radio-frequency identification (RFID).
- Network tokens. This method is made possible by mobile payment tokenization and is useful for storing and processing the consumers’ payment information. Network tokens enable businesses to avoid dealing with sensitive data and lower the risks of a data security breach.
- QR codes. These are secure tools used to exchange encrypted payment data. It is a convenient method for both merchants and customers, as a quick scan of the QR code is enough to conduct a transaction.
- Virtual terminals. If you are a merchant in need of integrating an mPOS system, you have to install an app- or web-based virtual terminal on your device. Simple as that - the mPOS is ready for use.
Thus, there are plenty of ways for businesses to enable mobile payments, but is it worth the effort?
Benefits of Mobile Payment Systems
Still haven’t made up your mind on whether or not you should implement mobile payment systems in your business operations? Here is a list of the benefits they offer to help you decide:
- Improved customer satisfaction. Mobile payment systems allow for a smooth payment process and contribute to an overall positive shopping experience.
- Boosted convenience. Fast and flexible transactions that can be conducted from anywhere in the world as long as the shopper has their device with them is extremely convenient.
- High security level. Mobile payments often use advanced data protection and authorization features, such as multi-factor authentication, biometrics, and tokenization.
- Increased retention rate and consumer loyalty. When clients enjoy their shopping experience and feel that their funds and sensitive data are secure, they are highly likely to return to the merchant who provided such exceptional service.
- Amplified revenue. The use of mobile payment systems is predicted to keep growing with time. For instance, NFC payments alone are forecasted to reach
1.31 billion users worldwide in 2023, compared to 950 million users in 2019. Hence, companies that manage to stay on top of this trend can expect an increase in revenues.
As you can see, the mobile payment systems’ role is likely to gain even more significance on a global scale. Therefore, it is highly beneficial for merchants to be adaptive and process mobile payments. Besides, the integration of mobile payment systems is no longer a challenge if you find the right service provider, such as Payneteasy.
Mobile Payment Systems Solution from Payneteasy
At Payneteasy, we are channeling all our multi-year experience to provide clients with smart payment solutions tailored to their needs. Since 2006, we have been closely cooperating with PSPs, banks, nonprofits, and financial institutions worldwide and know exactly what can improve your business’s performance. Hereàs what we offer:
- Payneteasy Payment Gateway. This white-label solution is convenient, reliable, and fast to integrate. It has the flexibility to cater to any type of payment interaction and includes an advanced management system with over 150 customizable anti-fraud filters.
- Smart.mPOS. Processing payments with mPOS terminals has never been easier than with the Smart.mPOS solution from Payneteasy. We offer a user-friendly SDK library for Android and iOS, a convenient management system, and multiple banks support in one solution.
- Customized solutions. We are happy to provide our clients with tailor-made service packages to maximize the benefits your business receives.
It is our pleasure to assist you, so don’t hesitate to contact us anytime! Simply fill out the
form with some details on your project, and we will get back to you within one workday.