Mobile payments are increasingly becoming an attractive payment method, as evidenced by the many businesses that are implementing the use of mobile application for convenient, fast, and safe transactions. Recent statistics estimate mobile payment to be at $75 billion dollars, which is further projected to increase up to $503 billion by the year 2020. Adopting mobile payment technology might just revolutionize the way you deliver goods and services in your business and here are important things you should know about the use of mobile payment apps for business:
· Exactly what can be considered as mobile payments in the context of business transactions? Mobile payments generally refer to mobile money transfers and mobile wallet transactions, which are regulated and facilitated through the customer’s mobile device. This can be through a peer-to-peer environment such as sending funds digitally via a mobile payment app or paying at a brick and mortar business by tapping your device to a point-of-sale unit to facilitate payment.
· What about mobile wallets? A mobile or digital wallet is where your customers can store or add funds either by linking the account with their credit card or some other source of fund. Instead of using a debit or credit card to pay for purchases, customers can pay using their mobile device.
· What kind of technology do mobile wallets use? Mobile wallets are powered by NFC or near-field communication technology, which basically enables two devices, particularly the customer’s device and the business’ payment reader to send information back and forth, wirelessly, so payments can be processed. This technology is very similar to RFID technology, thus making way for more and more contactless payments.
· What about mobile money transfer? Mobile money transfer is also a subset of mobile payment, which enables mobile to mobile transfers, wherein users need only the same mobile app installed in order to process payment.
· Why should you consider mobile payment apps for your business? Quite simply, mobile payment apps are the way of the future, providing businesses with a fast, efficient, convenient, and completely safe way to process transactions.
