Money

Getting Familiar With Mobile Payments Technology

Jim Luff
Posted on September 26, 2018

Payment should be as one, two, click.
Payment should be as one, two, click.
When you hear the term “mobile payments,” what does it mean to you? Is it when you use your mobile phone to make a payment with Apple Pay? Does it mean you can wave your phone near a reader to pay? Or buy something online using your mobile phone? In summary, it’s all of these things and more.

NFC Mobile Payment Technology

Apple Pay and Google Wallet are apps that store your credit card numbers. With the app on your phone, you can choose one credit card or several that will be used to pay for purchases. NFC (near field communication readers) capture a signal from your cell phone. Using an NFC device is known as an “in-person payment.” An NFC reader sits on the counter and a customer taps the NFC reader with a phone to authorize a transaction. Just as other manufacturers copied the iPhone, you will see Kohl’s, Walmart, and Microsoft launching their own versions of smart watches as more customers will want to pay like this.

Mobile App Payments

Many companies offer mobile apps that include a way to pay for your purchases through the storage of a predesignated credit card on the app. These apps include everything from Uber to Domino’s Pizza. You enter your credit card in the settings of the app once and you never have to enter payment data again. 

If your business doesn’t have an app, you can have one built and branded specifically for your business giving your customers an easy way to order service. Building a mobile app for your operation is probably not nearly as expensive as you think.

Mobile Card Readers

If you want to transact business in your vehicle, mobile card readers are a great tool. They are a must for charity events if you want to sell raffle tickets, drink tickets, or take donations for the cause. Everyone uses plastic to pay. Losing a sale simply because you had no way to collect the money is definitely not good business in a world of technology options. Mobile card readers plug into mobile phones, tablets, and laptops, and connect with a credit card processing app. With the app and mobile card reader, you can swipe a card, dip a card (chip read), or manually key in the card.

Card, please. Just kidding, just scan your phone for Apple Pay.
Card, please. Just kidding, just scan your phone for Apple Pay.
Mobile Shopping Carts

eCarts or “shopping carts” on a website are another way for consumers to use a mobile device to browse websites and make purchases. Websites should be optimized to be viewed on a mobile device or a desktop computer. The payment area of a website is your gateway to accepting money for trips booked there. Optimizing for mobile means the page loads fast, images fit a small screen, and ordering processes are easy to complete with one finger. Keep websites simple. Adding an eCart is easy.

Mobile Invoicing Tools

Mobile invoicing can recapture a lot of time previously spent on traditional invoicing. This can allow you to bill your clients from your smartphone, tablet, or laptop computer. Mobile solutions allow you to create invoices and send them from your mobile device, check the status of client payments, and even track sales data.

5 Important Mobile Payment Stats

  • By the end of 2020, 56% of all in-store purchases in the U.S. will be paid for by a mobile payment. (Mobile Payments World)
  • In 2016, there were 232 million smartphones in use; 16.5% of those were used to make a contactless payment in the same year. (Juniper Research)
  • Mobile payments are expected to surpass the use of both credit and debit cards by the year 2020. (WorldPay)
  • 72% of mobile payments users are Millennials or Gen X. (Pew Charitable Trusts)
  • Most consumers would be willing to use mobile wallets if retailers, hospitals, and other relevant entities accepted them. (Wharton University of Pennsylvania)

The Trends

  • By 2020, an estimated $503 billion will be transacted through NFC readers.
  • Nearly $37 billion was transacted last year on proprietary branded apps owned by businesses specifically to serve their own customers.

What You Need to Know

  • Payment data is encrypted as it travels through the internet, so there is no possibility of your credit card data being transmitted into a fraudster’s hands.
  • No human ever sees credit card data in mobile transactions.

Full Disclosure: Luff is also the marketing manager for Chosen Payments, a credit card processing provider for the luxury transportation industry.

Great Ideas provides a broad range of information focused on new ideas and approaches in management, human resources, customer service, marketing, networking and technology. Have something to share or would like covered? Contact LCT contributing editor and California operator Jim Luff at [email protected]

Related Topics: credit card processing, customer service, mobile technology, money, technology

Jim Luff Contributing Editor
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