mobile_payment_03As we repeatedly say here on our APPmanago blog – whole world is going mobile. When was the last time we went out without our smartphones? I don’t remember, and probably, neither do you. But is it a bad thing? Considering all of the advantages of smartphones and other mobile devices, it’s hard to say so. Constant access to navigation, useful apps, and of course THE internet – how is this bad? We live in the era of mobile devices, so let’s embrace it.

 

A huge amount of transactions went mobile. Why is that? Simply because it became so easy. Credit cards, mobile wallets, SMS purchases, PayPass – current technology fully supports mPayment, the topic of our post.

 

Let’s start with brief overview of currently available means of mobile payment:

 

I.Mobile wallet – it’s like the usual wallet except it does not exist in physical realm. It allows for having your credit or debit card information in digital form, and thanks to this, buy stuff via your smartphone or tablet.

 

II.Card-based payments – Debit or Credit – both types of cards are also “mobile”. Small plastic became the most popular replacement for real money. But how is it mobile? Just enter the card details while ordering something; nowadays most sites provides the possibility of saving card’s details, making future purchases a one-click process.

 

III.Carrier billing (Premium SMS or direct carrier billing) – The consumer can use the mobile billing option at the checkout of an e-commerce site— for example an online gaming site – to make a payment. After the two-factor authentication involving a PIN and SMS – Password, the consumer’s mobile account is charged for the chosen amount of money. It’s truly an alternative payment method that doesn’t require the usage of cards or any registration at an online payment solution,  such as PayPal. Thanks to this it bypasses banks and credit card companies altogether. This type of mobile payment method, extremely popular in Asia, provides many benefits:

  • Security – Two-factor authentication limits fraud.
  • Convenience – No pre-registration and no new software are required.
  • Easy – It’s just another option during the checkout process.
  • Fast – Most transactions are completed in under a minute
  • Proven – 70% of all digital content purchased online in some parts of Asia uses the Direct Mobile Billing method

 

 

IV.NFC Contactless payments (Near Field Communication) – NFC is a technology, thanks to which it is possible to exchange data between devices in a distance of 20 cm. NFC is used in smartphone devices, f.e. For connecting with wireless headphones or other wireless devices. But NFC can also be used for buying stuff similar to how you use your proximity credit cars. This method is most commonly used while paying for purchases made in physical stores or transportation services. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly. Currently mobile payment method via NFC faces significant challenges for wide and fast adoption, due to lack of supporting infrastructure.

 

Mobile Payment is still evolving

 

Future of mobile payment methods is still unknown, however almost every company in the industry is interested in it. For example Google wants us to make any purchase without even using the phone or credit card – it’s an in-development app called Hands-Free.  Just by telling the cashier “I’ll pay with Google”. Then the cashier would have to identificate the buyer, and the purchase would be made. It’s just simplified theory, but what’s interesting Google is also experimenting with using in-store cameras to automatically identify person based on facial recognition of the photo from Hands Free profile. But remember Google is just one player in the sea of mobile technology development.

 

Some forecasts predict that there will be over 2 billion people using mobile payments globally in 2019. It’s less 3 years from now

 

Globalization of mobile payments

Potential of paying with digital money is huge. Borders of different countries are starting to lose it’s meaning when it comes to paying online and mobile. Now if we want to order something from China, we just do it, and it’s not difficult at all. There also is a push for creating one technology, globally unifying mobile payments. Unfortunately, this is still quite far away from us, because of the necessity for introducing some standardization, rules that would be the same no matter the country or it’s economy.

 

 

What would have happen if mobile payment technology reached it’s full potential? Would the price of every possible item or service start to normalize globally? In the future It certainly is possible. Then what about the quote from an old movie, “The future is now!”? Share your thoughts in the comments!