Smartphones and tablets are the mobile devices that the majority of consumers have at hand at all times, making them even more convenient to use for payment than a credit card or cash. Thus, no matter if you sell your goods or services online or in-store, integrating a way to pay via mobile in addition to traditional credit card processing methods is vital for offering a smooth shopping experience for your clients.
Mobile payment systems allow business owners to better connect with customers, secure sensitive data, and increase revenues. Continue reading to find out how your company can implement mobile payments alongside card transactions and reap all the benefits they provide.
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 card networks, alongside bank account information. Due to their universality, mobile payments 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:
Now, let’s take a look at how these methods enabling consumers to pay through mobile operate to see if it’s convenient for a business to introduce them into their operation alongside card transactions.
The operating principle of a mobile payment system depends on its type. The main solutions powering mobile payments are:
As you can see, mobile methods open plenty of payment channels in comparison to card transactions. Besides, there are many ways for businesses to enable mobile payments, but is it worth the effort?
Still haven’t made up your mind on whether or not you should implement mobile payment systems in your business operations instead of having your customers pay only through traditional card transactions? Here is a list of the benefits they offer to help you decide:
Experts are certain that there’s a bright future awaiting mobile payments. It is forecasted that by 2024 there will be 4 billion mobile wallet users in comparison with today’s 2.3 billion. Thus, it is no wonder that this transaction type will be experiencing plenty of innovation. Below are the top five trends we are likely to see mobile payments follow in the near future.
1. Faster Utility and Service Payments
It’s most likely that you get charged for your utility bills through regular credit card payments. Thus, to pay for electricity, water, or gas, you have to access your bank account and initiate the transaction.
However, in the future, mobile payment APIs are aiming to enable companies to implement a plug-and-play solution that will integrate an entire local ecosystem of utility service providers via just one endpoint.
An example of this is already seen in China, where the WeChat app hosts thousands of lightweight APIs and empowers over a billion users to make everyday payments comfortably from a mobile phone.
There’s no doubt that such convenient real-time payments will be welcomed worldwide, enabling people to save time and avoid long queues at municipal institutions like the Department of Motor Vehicles. Besides, this opens plenty of business prospects for companies that deal with invoicing.
2. Simplified Cross-Border Trade
Even nowadays, the majority of cross-border payments remain expensive and fairly slow.
Mobile payments can make this process easier for cross-border trade by facilitating faster international payments and remittances from the comfort of a digital wallet.
This would not only provide unmatched comfort for users to pay and send money internationally fast but would also open up plenty of business opportunities. The remittance market alone is forecasted to grow to $930.44 billion by 2026 at 3.9% CAGR AMR.
3. Convergence of Social Media and Mobile Payments
Social media is an integral part of daily life and is likely to play an even more important role in the foreseeable future. For instance, such platforms are predicted to offer adjacent financial services. Imagine such spheres as credit, savings, and insurance embedded into an app where you already spend plenty of time.
Apart from the opportunity to pay for an increased number of services, social media and messaging can merge with payment platforms for improved customer support experiences. There’s a growing number of businesses offering clients the opportunity to chat and pay - think apps like Venmo and xZelle.
4. Mobile Wallet Cloud Integrations
A mobile wallet that features cloud-based technology is a solution that enables users to pay in a frictionless manner due to a network of remote servers. With all devices, modules, and network paths having a duplicate kept in a cloud environment, there is no SPOF (Single Point of Failure). Thus, apart from convenience, such solutions also enhance payment safety.
5. Sound Wave-Based Payments
Audio signal-based payments are even more advanced than the NFC technology. Thanks to it, a user doesn’t need a credit card terminal, banking app, or mobile wallet to pay for a product or service. Such transactions are powered by sound waves that contain encrypted payment data, making internet connection redundant to conduct the purchase.
Similarly to a mobile wallet, you don’t need any additional hardware to avail of sound wave-based payments functionality, which makes it easy to pay using it. It’s also very convenient, as you don’t have to carry anything like a credit card or cash with you - it’s all in your smartphone.
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 alongside card payment processing is no longer a challenge for a business if you find the right service provider, such as Payneteasy.
At Payneteasy, we are channeling all our multi-year experience to provide clients with smart mobile and card 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. Here's what we offer:
It is our pleasure to assist you, so don’t hesitate to contact us anytime regarding card and mobile payments and other software and hardware solutions for your business! Simply fill out the form with some details on your project, and we will get back to you within one workday.