What are Mobile Payments?
Mobile payments are purchases made utilizing a mobile wallet application on your mobile device, as opposed to swiping, or inserting your credit card. This process of making a contactless payment works off technology known as near field communication (NFC). When your cell phone is close enough to the credit card payment reader, the two devices can communicate wirelessly.
To obtain a mobile wallet, you download an app on your phone. After installing the app, add your or debit card information. Then, you will establish secure access to your account information using your fingerprint, face recognition, or some other security method.
They simply place their phone that contains the customer’s mobile wallet close enough to the credit card processor to complete their purchase.
When people shop online, they are looking for convenience and do not want to spend a lot of time putting numbers into a blank. There has been a significant increase in the number of people who shop online. With E-wallet App Development, more and more businesses have taken their brick and mortar storefront to the online platform. Mobile checkout is convenient for it is suitable for both the business owner and the consumer. However, in the process of conducting the transaction, the checkout process must also work for both parties.
How Do Mobile Payments Work?
Mobile Payment Solutions provide customers with an alternative method of paying for goods and services. Instead of paying with their credit card, cash, or checks, customers can use the mobile wallet on their cell phones to checkout.
To pay using mobile payments, you must have a mobile wallet app on your cell phone. You can download mobile payment applications like Apple Pay, Samsung Pay, and Andriod Pay from the internet. Then, add your account information inside your phone within the app. Also, the merchant must have Mobile POS Systems that can accept the NFC.
When you get ready to pay, place your finger on the home button of your phone. Your phone authenticates your identity and authorizes your transaction by its recognition of your fingerprint. The mobile wallet transmits your encrypted account information to the card processor. All this works off modern technology known as near field communication (NFC) and radio-frequency identification (RFID). The phone must be close enough to the processing machine for it to work. Usually, that’s about two inches.
Mobile Payment Applications have been around since 1997. Still, it only gained popularity since the Mobile App Development of Apple reintroduced it in 2014 with the Apple Pay. Now, Samsung Pay is available for consumers who use the android. In addition to using the contactless system, Samsung Pay works with the card processors by convincing the machine that you swiped your card.
Are Mobile Payment Apps Safe?
To have the comfort level to use mobile payments, consumers need to know that it is safe. Therefore, they must have a basic understanding of how it works. Mobile payment software works on the technology called tokenization.
When you load your credit card photo into your cell phone, the mobile wallet app sends the card’s details to your bank. That credit card information gets replaced with a series of randomly generated numbers, called tokens. The app programs the token into your phone instead of the bank card number. Each time you use your mobile app to pay, a new token gets generated. Your bank card information is not accessible to anyone with fraudulent intent.
Also, you can only use the app by placing your fingerprint on the home button, or by using whatever secure method you established when setting up the app. You don’t have to worry about someone cloning the magnetic card stipe or stealing your PIN. Therefore, mobile payment apps are extremely safe.
Benefits of Mobile Payments
Benefits to Consumers
Speed
Mobile payments provide customers with a fast and convenient alternative method of paying for goods and services. Within seconds, you can tap your phone to complete your purchase, get your receipt, and go on your merry way. Meanwhile, the customer in the checkout aisle next to you is still punching their PIN into the card reader machine.
Convenience
Mobile Wallet Development has made contactless paying easy. You do not have to carry lots of cash with you or credit cards that can be lost or stolen. All you need is your phone, which you probably do not leave home without if you are like most people. In addition to making store purchases, you can transfer money to someone using your bank’s app on your phone.
Safety
Contactless payments offer a safer alternative to touching checkout counters and payment processors that hundreds of other customers may touch daily. Each time someone touches the machines, they deposit germs that can pass to the next person who touches it.
Security
Mobile payment apps are just as secure as EMV chip cards, which banks prefer over the magstripe cards. When you consider security measures like fingerprint authentication and facial recognition, some would argue mobile payment security is more secure than EMV chip cards.
Benefits to Merchants
Data Access
Mobile payment gives merchants the ability to provide better service to their customers. As a merchant, you will know how often customers are shopping, the amount of money they spend, the products they purchase, and how they prefer to pay. You can use this information to help tailor your customer’s shopping experience based on their preferences.
Loyalty Programs Integration
The rewards you offer your customers through your businesses’ loyalty program will be easier to manage through your store’s app being integrated with the mobile payments app. When shopping in your store, customers who have the app on their phone can receive discount coupons through the app.
The mobile app will enable the customer to be rewarded for every purchase they make by receiving points for their purchase. Repeat customers normally spend more than first time buyers. The rewards your customers receive will be an incentive for them to keep coming back again and again.
Mobile Payments Available Through Chetu
For over 20 years, Chetu has 1800 developers, who have been successfully developing software payment and gateway solutions for a wide variety of businesses. We have created over 16,000 Apps and are a member of the Forbes Technology Council. We are also a six-time Inc 5000 Honoree.
We are Experts in Payment Gateway & Processing Software Development.
To accept mobile wallet payments at your business, contact Chetu to find out about Mobile Payment Software Solutions. We dedicate ourselves to finding the best POS solution for businesses of any size and scale. Chetu partners with top POS Software companies and create Custom Mobile Payment Systems for merchants and companies. With our customized Mobile Wallet Development, we can develop your mobile payment system to help keep your business moving while you are on the move.