By the end of 2023, more than 90% of adults in advanced economies will have a smartphone, using their devices an average of 65 times a day. The popularity of smartphones is due to the fact that they provide fast and convenient communication. Now customers want to pay just as conveniently. That’s why mobile payment options have started to spread rapidly around the world, providing fast, convenient, and secure payment processing for customers and merchants.
Mobile payments are all financial transactions made with smartphones, tablets, or other internet-enabled devices via apps, browser, or physical card readers. As digitally mature people around the world increasingly prefer digital payment solutions, the integration of mobile payments has become more of a necessity than just an advantage for businesses. Mobile payment options significantly facilitate transaction processing during shopping both in online stores and brick-and-mortar ones. Having a smartphone, tablet or another device close at hand, a buyer can easily authorise and conduct a transaction in a matter of seconds, without a physical credit card.
There are several distinct advantages that make mobile payment methods stand out from others. Among them are:
Improved security. Mobile payments have proven to be even more secure than traditional payments as they are protected by additional security systems, like a fingerprint, encryption, tokenisation, face recognition, and others.
Convenience. Customer’s credit card information can be stored in their phone, tablet, or another device, which eliminates the need to carry a bank credit card around or withdraw cash. Fast and secure digital transactions without unnecessary hassle provide maximum comfort for both consumers and merchants.
Fast authentication. It takes literally a few seconds to make a payment via mobile app or other option because in most cases the card data is saved after the first input and is entered automatically on the next purchase. Plus, instant user verification occurs via a short pin code or fingerprint.
If you are interested in boosting your business and attracting more customers, you should definitely invest in technology that enables you to accept digital transactions. The costs are guaranteed to pay off.
There’re plenty of methods for businesses to accept mobile payments. The same goes for people who prefer to make card-not-present purchases, pay bills and order services with just their phone at hand. All that is required from the merchant is the presence of a POS terminal (or a card reader) and software for processing digital transactions. Next, we will describe the most widely used mobile payment solutions.
Traditional browser-based payment systems have a fairly clear mechanism of operation. Customers who want to pay for goods or services visit a business website with their internet-enabled devices and enter their debit/credit card or ACH details on a checkout page. In case of frequent purchases in one store, this data can be saved in their account on the website.
In-app payments are very similar to browser-based ones, but they’re made not on the seller's website but in the app. Once you register a credit card or ACH information in the merchant’s app, you can buy items, book services, or pay bills within a few clicks.
In brick and mortar stores, retailers cannot do without wireless card readers. These portable devices work through built-in Bluetooth technology and connect to the internet wirelessly. To make a payment, the buyer just needs to bring a card or NFC-enabled device to the reader, and the transaction will be processed in a matter of seconds.
A mobile wallet is a secure virtual wallet that stores card information and allows users to send and receive money transfers, pay for goods and services without cash or even a bank account. Many online businesses accept payments from mobile wallets because they provide a high transfer speed and the possibility of multi-currency transactions.
QR (abbreviated as “quick response”) codes are a prevalent technology for seamless transactions through mobile wallets or banking apps. Since the user’s card details are already saved on the phone, there is no need for manual entry of card information. After the user scans the QR code with a smartphone, they’re directly redirected to a checkout page and securely confirm the transaction using a fingerprint, face recognition, or other options.
The “Pay by link” option has begun to spread rapidly among e-commerce consumers with the explosive growth in online shopping. This technology involves sending the buyer a link via email or messenger. These links aren’t permanent may expire after some time.
As you can see, there are tons of payment options for smartphone fans. But should businesses integrate all the methods at once, or should they choose the most relevant ones for their target audience? There is no definite answer here. On the one hand, it will take a lot of time and effort to integrate each payment method separately. On the other hand, all these problems are automatically eliminated if you integrate Corefy’s platform supporting almost all mobile payments. Allow your clients to pay securely with an app, POS terminal or card reader, QR code, or internet-enabled phone, ensuring the smooth transfer of funds.