7 Things You Should Know About Mobile Payments
⏱ Reading Time: 7 minutes
Mobile payment means any form of monetary payment or transaction made for a product or service through a portable handheld electronic device. Electronic devices such as a tablet or mobile phone. Mobile payment generally refers to payment services operated under the fixed financial regulations and performed from a mobile device. Unlike completing the transaction by paying with cash, cheque or debit, or credit cards. It is the age of information and gone are those days when customers would use cash or their cards to complete payments. Today users make purchases using mobile and online payments, especially when shopping online.
Technology has evolved so much that it has made banking not only easy but convenient. People now pay for a wide variety of goods and services digitally on the go. Waiting in line at bank counters now seems like a distant memory. Many businesses also choose to offer mobile eCommerce services to make the payment process much easier for their online customers and clients. This method has become so popular that online shoppers today expect it to be a feature by default. Not having mobile payment is considered outdated, leading to users not trusting that platform!
Convenient Payment Tool
The latest technology in cashless payment acceptance is mobile wallets and digital payments. The introduction of mobile wallets transformed smartphones and other wearables into a secure and convenient payment tool for customers. Whereas for the retailers, accepting another form of payment gives them a competitive advantage. They are ahead of those who still follow conventional payments techniques whilst giving the consumers convenience and ease. In addition to this, there are several other benefits for both the consumers and the operators, which we will examine in this article.
Let’s dive deep into mobile payment technology. We will mention the different types of mobile payments and most importantly, payment security!
Picture 1. Mobile payment options can help replicate the in-store experience of convenience
1. Security Should Be Paramount
Online payments tough convenient, can be quite vulnerable to cyber risks such as financial fraud and hacking. As an online business owner, it is best that you do not store your users’ financial credentials. Those are the first thing that is targeted by an attacker. Though online transactions are fast they are however vulnerable to cyber-attacks. Therefore, online businesses become even more vulnerable because of the users’ financial credentials stored on the website. Furthermore, it is advisable to use a third-party payment portal to handle financial transactions. That way you are ensuring the safety of your customer’s confidential data. Also, you are reducing your liability in case your website does come under attack.
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Along with this, it is important to have end-to-end encryption and making sure that the data is protected from any external hacking. Hence, it is important to buy an SSL certificate as they help you protect your website against any entity trying to gain access illegally. The main reason for investing in an SSL certificate is that it preserves sensitive data sent over the internet. It encrypts and scrambles the information so that only the receiver intended to get that data can only access it. With so much information passing from one computer to another device, it needs to be encrypted so that it is not intercepted to gain access to your website. Any computer between you and the server can view the data, which might carry sensitive information. Stuff like financial details, credit card numbers, and bank details if it is not encrypted. Therefore, as an online business owner, it is advisable to buy an SSL certificate. If you are thinking to buy an SSL certificate, you should think of a number of domains and subdomains. If subdomains are there, you can think of a cheap SSL wildcard or you can go with a single domain or multi-domain SSL as per other requirements.
2. Mobile Wallets
This type of mobile payment enables you to accept payment for any goods or services as an online eCommerce website. For example, a transaction made with a credit card. Your user needs to register their account and add funds from their credit card, bank account, or debit card to the wallet on your website. Mobile wallets are a great help with reducing the payment processing time. There are lower chances of fraud when using them and are also economical. Mobile wallets are very easy to use, making them favored by many online shoppers and traders.
Picture 2. Online payment is in the rise
3. In-App Mobile Payments
There are thousands of mobile applications on the internet today. With the rising number of available apps, users today can pay for an in-app purchase without having to go to a dedicated payment center. The customer can register card information or bank account details and then directly download files without leaving the app.
4. Value Added Features
While the primary function of a digital wallet or a mobile wallet might be to offer unparalleled speed and convenience to customers, a lot of leading-edge mobile payment solution providers give plenty of value-added services. Features like offering promotions, real-time specials offers, location-specific discounts, and cash backs targeted topical announcements. Sometimes even game features inside the payment app. Merchants also get a chance to build and increase customer value. This, in turn, also increases mobile payment to be adopted by more and more users.
Businesses stand to gain many insights from these customers who pay by phone, too! Besides, the online payment app provides retailers with steady purchase data and information regarding the customers and their demographics. Value-added features also make users trust your brand more, and it boosts user experience. As a result, advanced businesses have started using their mobile payment app to deliver a unified and unique experience to their users.
5. QR Code Payments
- Technology has come a long way. Today customer does not even need to look at their phone to make a payment because, with mobile payments, they can use their phone cameras to scan a QR code and make the payment. Furthermore, QR code payments work by using certain financial institutional apps with which the cards are already registered. Therefore, QR code scanning payments is a great alternative that eCommerce businesses regularly use. They save the users a lot of time where they are supposed to fill in their card details at checkout. Instead, all they have to do is scan a QR to complete a transaction. In addition, this technology helps institute mobile payments as safer transactions since it is the device that authorizes ownership.
6. It Boosts Customer User Experience
E-commerce has made life much easier and more convenient by allowing people to buy anything with just a click of a button or a tap of their finger. But in this competitive marketplace, user experience is very important. Mobile payment options can help replicate the in-store experience of convenience. Let us not forget that busy shoppers have limited time and little patience for a long-drawn checkout process.
Shoppers mentally perceive the checkout to be a long process and believe the wait time to be far longer than it is. This often ends up with the customer leaving in frustration. This whole scenario is avoided by having mobile payment as it drastically cuts down on the checkout time and helps you get a sale. Not to mention an overall good shopping experience that makes them come back to your website in the future.
Picture 3. The digital ways of payment are the future!
7. Mobile Payments Help Businesses Save Cost
Though it might not be the most evident function, mobile payment can have substantial cost-saving benefits. For example, eliminating many processes like bookkeeping, counting cash, tallying the books, bills, and invoices. You do not have to do any of that with mobile payments, as everything is digitally stored from your accounts to the transactions. But that is not all, as there are other hidden costs that cash-first organizations have to incur. Especially those associated with staff training and auditing and the banking charges. Fewer cash transactions can bring these costs down significantly.
To conclude, mobile payments are the future! If you have not implemented them on your eCommerce website, you should do it without any further delay. But while you are doing that, make sure to not compromise on security. You will be dealing with others’ money after all, and as an online business, the responsibility to protect and secure transactions falls on your shoulders.
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