Mobile payment is one of the latest payment methods which includes making payments through a mobile phone. It's instant and more secure than cash payment.
There are many ways consumers can make payments for the goods and services they purchase. Consumers can decide on one of the many payment options which are available for them. The primary forms of payment include cash, cards and mobile payments. Mobile payment is a new trend which is driven by mobile phones.
Mobile payment is the latest technology which saves consumers the hassle of carrying cash or cards around. It enables consumers to shop and pay using platforms on their mobile phones. The main drivers of this payment method are the emergence of e-commerce, growth in mobile phone subscription and innovations which enable these payments to happen.
Types of Mobile Payment Technologies
In mobile payment technology, customers purchase their goods or services and make payments to the vendors directly from their own bank accounts or mobile wallets using their mobile phones. Some of the technologies used to enable these transfers include QR codes, bar codes or other consumer-initiated transfers which include USSD.
In most cases, mobile payments are instant. This means the customer's account is debited immediately, and the vendor account is credited. Mobile payment started in the developed world. Still, it is growing very fast in emerging markets such as China and India, with QR code technology being prevalent in these two markets.
Benefits of Mobile Payments
Mobile payments have many benefits over cash and card payments. First, mobile payments are swift and convenient. It is instant, and vendors do not have to wait to be credited. Mobile payment is also very secure. This means customers do not have to walk around with cash which can be stolen.
Unless the customer shares their passwords, a third party cannot access their mobile payment platforms. Also, the mobile payment method allows customers to make payments in the comfort of their homes. Lastly, unlike cash payment, the mobile payment method will enable customers to keep a record of their purchases, hence allowing them to make informed decisions.
Mobile Payment Apps
Mobile payment technology has two options; customers can transfer funds from their bank accounts to the vendors' account, or they can transfer funds from their mobile wallets to the vendors' mobile wallets or bank accounts. There are mobile apps for both options. These apps enable easy access to the funds when transacting.
Mobile payment apps are secure and easy to use. After downloading, customers have to enter user authentication details, and the app also has other security features. Depending on the type of wallet, consumers may be asked to enter their credit or debit card details. This enables the customers to access their bank accounts through their phone.