How Mobile Payments are Changing the Way We Pay
The global payments landscape is rapidly evolving, and mobile payments have been a major driver of this change. With the proliferation of smartphones and other mobile devices, more and more people are relying on their devices for a variety of tasks, including making payments. Mobile payments offer several benefits over traditional methods of payment, such as cash and card payments. They are secure and convenient, allowing customers to pay for goods and services promptly and efficiently. Mobile payments have also become a popular option for businesses.
Currently stated, over 2.3 billion users globally have made mobile payments an integral part of their lives. The market for mobile payments that were once valued at $1.1 trillion in 2019 is set to increase its value up to $ 9 trillion by 2024. These analytics can even go up owing to the impact of the global pandemic on the payment industry.
To know more about how mobile payments are rising, let’s start from where it begins.
What are mobile payments?
Mobile payments equip us to pay for goods and services and process payments just by using our smartphones. The easy and reliable way to pay made customers happy as they were able to pay even when they forgot to carry their wallets or were out of cash. These payments also work through mobile wallet apps.
While using mobile wallets, you can save your card information on the device you are using and can fast-track your payment processes. To begin your mobile payment in a minute, you can simply register your bank details, link your account, and boom your account is made in the wallet. Near Field Communication (NFC) technology enables you to tap a terminal, scan a QR code or even use your smartwatch or fitness tracker to make payments. (Make sure to link them first)
Mobile Pay Timeline – a glance at important events
- 1997– Coca-Cola introduced vending machines with SMS payments. Exxon mobile introduces Speedpass and used RFID technology to make payments.
- 1998– PayPal is founded.
- 1999– Some mobile phones are used to purchase movie tickets.
- 2001– Domino’s started talking orders through cell phones.
- 2004– Donation to NPO and NGO started through SMS.
- 2009– Square launches its services. The mobile payment market exceeds $ 69 billion in sales.
- 2011– Google introduced the wallet service.
- 2014– Apple introduced Apple Pay.
- 2015 – Samsung Pay and Android pay is introduced.
- Contactless payments
As the name implies, do not involve any physical contact between the device and the reader. The customer has to tap their cards on the machine or wave their phone over the reader to make the payment. These payments are faster and more reliable in comparison to swiping or inserting cards. During the pandemic, contactless payments are the most accelerated payment option and highly boomed the payment industry in 2020.
Companies like Apple, Samsung, and Google have Apple Pay, Samsun Pay, and Google Pay respectively to make payments contactless.
- Consumer Reliability
Wallets and mobile payments enable users to opt for discounts, rewards, and offers through various contests or loyalty programs on mobile payment platforms. This reliability and loyalty will be vital for the continued success of mobile payments.
Mobile payments are always there for you when you miss your wallet at home or you are out of cash. It also eliminates the inconvenience to carry around a heavy wallet with cards. Moreover, you don’t have to worry about remembering your card PINs. With your mobile phone, you can complete any transaction easily and conveniently.
- Security and Efficiency
When you add a card to your mobile wallet, the details are not completely stored on the device or the server. Instead, every transaction is end-to-end encrypted by using a unique code for payment verification. These encryption codes will secure all the cardholder’s details and don’t reveal them.
Many mobile wallets use biometric authentication for payment security. Rather than the usual password or PIN, mobile wallets provide high security by involving behavioral and physiological traits such as fingerprint, facial features, or voice recognition to authenticate a user’s identity before verifying the payment.
The security, efficiency, and convenience of mobile payment ensure the continuous rise of the industry. With all its value it can become the go-to mode of payment for consumers. In the coming years, we may see a big revolution in the mobile payment industry itself.
Overall, the rise of mobile payments is revolutionizing the way we pay for goods and services. It is providing customers with greater convenience, security, and control, while also opening up new opportunities for businesses. As mobile payments become more widespread, we will likely see an even greater impact on the payments landscape in the years ahead.