Modern smartphone users increasingly prefer to use their devices instead of debit cards, credit cards or cash. The Apple Pay payment system launched in 2014 was a big push in this direction. Not surprisingly, Samsung has already announced its intention to equip its new phones with proprietary payment software.
The Federal Reserve has found that about half of smart phone users utilize their mobile devices for banking transactions although not all yet believe mobile payments are safe (“Consumers and Mobile Financial Services, 2014). Furthermore, Forrester Research expects that by 2019 consumers will make $34 billion of in-store purchases via mobile devices. Here are some more facts about mobile payments.
Easy and convenient to use
Almost all mobile payment transactions work equally. You enter your credit card or debit card details in advance into a special mobile app. When making a payment, you open the app and have the cashier scan it, or you tap your phone on the pad.
Some stores and restaurants have their own applications. Also, at multiple retailers, it is possible to pay with the biggest of this kind Google Wallet and Apple Pay.
Safer than plastic
Despite the fears of some users, mobile payments can be safer than credit cards. In fact, most apps generate a unique bar code for each transaction. For example, in Apple Pay, your device is linked to your card via a special code. Thus, the application does not store your credit card data.
Benefits for businesses
Mobile payment apps are a convenient and advantageous solution not only for customers but also for businesses. Here are 3 main benefits:
– growth of new customers,
– fewer overhead expenses,
– speed and convenience.
There is no doubt that the system of mobile payments still has work to do and a room for improvement, but it certainly has a great potential.