There is no single definition for mobile payments since they vary greatly in both their nature, methods via which they are used and the technology they involve. However, the basic concept of mobile payments involves using your mobile device to buy products and services.
For example, imagine leaving your wallet at home and walking with just your mobile phone to a supermarket to pay for your shopping - mobile payments make this possible and according to financial and technological experts, consumers will soon leave their physical wallets at home and fulfill their daily financial transactions using only their smartphones.
If and when this transition occurs it will result in numerous advantages for both consumers and the sellers, the transaction process will be much faster than queuing in line and the payment process along with individuals’ personal details will remain much safer from hackers and thieves. We discuss the basics of mobile payment below:
1. Mobile wallet
Most experts consider this the most popular type of mobile payment. In this method, your smartphone uses a built-in Near Field Communication (NFC) wireless technology or a tap-and-go technology to allow you to pay for products and services using your mobile phone just like a credit card would.
It is more convenient and faster than cash and experts say you are more likely to have your mobile phone to hand than your credit card - there are various examples of mobile wallets around at the moment, arguably the most famous of these being the Google Wallet.
2. Mobile as point of sale
This type of payment is not to be confused with the mobile wallet. In simple terms, this method enables business executives to process credit card payments using their phones meaning merchants can use mobile phones to accept payments from consumers.
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This technology is highly useful when selling products or services at street fairs and such like and it can prove especially beneficial for sales people who are constantly on the move. This method is highly convenient and quick for both the consumer and the merchant and the technology involved means it is suitable for most smartphone devices. Other benefits of this payment solution include:
• Simple to use and operate
• Runs on most phone models
• A lower cost solution
3. Closed loop and direct billing mobile payments
These types of mobile payment are of less interest to people going about every day life but they’re also important to know about; they use something called direct applicability. For instance, when you purchase a ringtone or an App for your smartphone, you are using some sort of mobile payment.
Your consumption of digital content such as Television shows you purchase also fall under this category. When companies create their own mobile payment systems, they are known as closed loop mobile payments.
The systems should be easy to install and use which will enable consumers to make their payments easily, quickly, and have an overall enjoyable experience when doing business with your company, boosting your profile as a result.
4. The mobile payment platform
This term covers everything else when it comes to mobile payment types and solutions. It encompasses all categories that allow consumers to transfer money to each other or to companies using just their mobile phones.
These methods may use point of sale, text messages or even online methods to make a transaction and numerous network carriers have developed some form of mobile payment platform to offer their customers a diversified service and stay on top of the competition.
LucyAbout the Guest Author:
Lucy has just got her first Google Wallet and believes that mobile payments are going to increase exponentially. Adelante provide a range of mobile solutions and a blog if you wish to find out more information on the growth of mobile.