The way of using money is modernizing from time to time. It started from barter and then barter to coins. After coins, people started using paper in the form of cash and plastic in the form of bank cards. Nowadays, people have found a new and easy way of transferring and using money. It is a Smartphone that helps in using money rather than cash or bank cards. With NFC’s help (near field communication), companies have made it easy to go shopping by replacing cash and credit cards with smartphones. Nowadays, people only use their phones to complete the task of paying for goods and services. Small businesses are using this system so that the customers can pay as quickly as possible.
It includes mobile wallets and money transfer ways. You can do both of these through your smartphone. Some money transfer companies like MPESA charges low money on transferring. You can easily send or receive money or go shopping on your smartphone. With the help of this platform, there is no need for bank cards, cash, or write out checks or wait for invoices. Majority of the Smartphone companies are providing the feature of NFC in their devices. Apple pay and other NFC payment methods are getting fame day by day. Changing to this payment technology is extremely valuable for your business.
The system of smartphone payments is gaining momentum day by day. According to Business Insider, millennials will continue to use it, and its usage will increase. It is suggested that by the end of 2025, 75 percent of all financial transactions will be on smartphones. People don’t like to use a take much cash with them in the shopping malls or some financial deals. Sometimes people also forget where they put their wallets and waste much time searching for their wallet. This problem has also been solved with a single touch. According to Statista, the total revenue from this market was about $930 billion in 2018.
A report said that there are almost 150 million users of it today. Some of the trending and famous systems are PayPal, Payoneer, Stripe, and Braintree. A report found that in 2016, PayPal, the world’s most significant system processed 102 billion mobile payments.
If you are not still convinced by these statistics and numbers, here are the top three reasons you should adopt this technology if you are running a business.
- A convenient way for customers:
Every person needs convenience and an easy way of transferring and getting money. If customer convenience is your priority, then this platform will best suit you. Mobile payments are contactless payments, which are the most convenient transactions that can be completed a lot quicker. Mobile payments are easy and quick to do, and it improves customer trust in the business. Users can also use multiple accounts in a single mobile instead of carrying a physical wallet with all the different cards and cash. All the necessary data and password of your account is stored in a mobile device. If you have a credit card and you have forgotten your pin, it won’t be easy and time is taken to recover your pin through your bank. But if you were using a mobile payment system and forgot your password, you can quickly recover your password on mobile and save it in your Google account.
In 2015, Business Insider did a survey and found that 40 per cent of millennials will switch to mobile payments and give up carrying cash and bank cards. In Europe, Sweden is already a cashless society, and in 2021. It will ultimately turn into a mobile payment system in Sweden. People will get rid of these cash carryings and bank cards.
- More secure method.
Contactless payments are more secure and safe than using a credit card. However, still, some people in our society don’t want to trust this system because they thought that it’s a scam. Now, most mobile payment companies are recognizing the importance of the security of contactless payments. Using mobile wallets, such as Apple Pay, Android Pay, Samsung Pay, or any other NFC system for doing shopping or paying for something is more secure and reliable than using a payment card. For example, Apple Pay encrypts customer data by using tokenization. Users have to download a mobile payment app and add credit card information to it. Ultimately, the real card number is replaced with a token number. This number is not the actual card number.
Moreover, this token that is not a real card number is also protected with a password or Touch ID. Even if some hacker gets your token number, he can’t do anything because it is not a real card number. It is just your unique number to access your card. These are the steps that increase the level of security and reduce the scam possibility. In case you have lost your phone or stole it, the payment activity can quickly be frozen.
- Stay on top of new tech.
Recent research founded that users spend more than twice money and shop more often by using digital payment. The simple example is that in 2016, Visa partnered with Honda for an in-vehicle payment system. It made it possible for a car owner or driver to maintain a car or buy fuel through the visa payment system. Mastercard also partnered Samsung and online grocery retailers to make an app that allows customers to order groceries directly from smart refrigerators.
These are three main reasons why you should choose a mobile payment system instead of cash or a bank card. Businesses can grow more by following this payment trend and incorporating mobile payments into their app or website.