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Mobile Payments are now a common necessity in our lives, whether it be swiping our phone at Starbucks or using our mobile credit to buy a game. There are a wide range of opportunities for business owners to make customers leave their wallet at home and make more sales using mobile payments, as well as increase operational efficiency throughout their organization.
Mobile Payments are a method of money transfer system via a mobile device, such as a smartphone. Mobile payments enable users to utilize their cell phone or data connected tablet to purchase any kind of service or goods between a seller or retailer.
There are 4 popular types of mobile payments:
The Mobile Wallet
Some common mobile wallets include Apple Pay, Android Pay, Paypal or Venmo,, which allow customers to load money into their account using a credit or debit card and then utilize the money to buy any type of goods or services online or in person.
Efficiency wise, mobile wallets can be used by businesses to make transactions more secure and frequent. They can help to secure transactions to make a business more reliable and convenient for customers. In addition, these methods of payment can collect data and help to manage the buying experience or enable businesses to perform additional functions like followups.
Mobile for Point Of Sale
Mobile Points of Sale allows any mobile device to perform as a digital cash register. Small business owners can use this cost effective tool to conduct transactions using their tablets or mobile phones without having to invest in an electronic register or software consultant.
A popular point of sale used today is a tablet or mobile phone equipped with a mobile app and a special card reader that plugs into the mobile’s audio jack. Some other versions include hand-held docking stations that allow mobile devices to read barcodes and print receipts. To maintain security mobile point of sale systems use encrypted data and store it in the cloud and not in the device of use.
Some mPOS providers are Square and Paypal.
Direct Carrier Billing
Direct Carrier Billing was originally used online to buy ringtones and wallpaper, but has evolved into a much, faster and secure platform to pay for a wide variety of goods and services such as mobile games, applications, and in-app purchases.
Typically, mobile operators enable their own Direct Carrier Billing systems. Platforms such as Bango, Fortumo or Asean DCB have created a one-click tool that gathers all the carrier billing services to make it easy for businesses to integrate DCB payments.
In countries where credit cards have a low penetration rate, carrier billing is an excellent option to reach a wider range of customers.
Close Loop Mobile Payments – NFC Payments
Closed loop mobile payments are most often used in physical stores. These type of payments enable consumers to load money or gift cards into a spending account that is linked to a payment device. A popular and successful close loop mobile payment system is by Starbucks. It links a customer’s Starbucks card, enables customers to add money to their account, check their promo points, pay for their coffee, and even order ahead using only the mobile application. Other chains are starting to adopt the process as well, like Yogurtland.
Amazon Go is another closed loop mobile payments app offering advanced features and allows buyers to make purchases automatically by simply “checking-in” with their smartphones. Amazon Go uses RFID (Radio-Frequency Identification) and NFC (Near Field Communication) Systems in order to identify the products the users take with them, recognizing their pricing and charging into their account once the phone has passed through the Exit Door.
While there are many other types of mobile payments that exist, these four categories summarize the types of payment systems that businesses can integrate to make a smooth buying experience for their customers. With the advancement of technology, a world in which physical wallets are no longer needed.