Consumers, retailers, banks and payment processors form a complex network in today’s payment processing environment. Recently, there has been a massive shift from physical payment to digital payment, especially with the need to use contactless payments due to the pandemic.
Online sales, smart devices and mobile payments are transforming how consumers search and pay for products and services and how payment processors accept, secure and facilitate transactions.
It can be difficult to keep up with current developments in mobile payment technology because it is changing so rapidly. We’ll review some of the technologies that are reshaping the way customers make payments and how mobile payment gateways facilitate these transactions.
Opt for contactless instead of physical payments
The rise of mobile wallets has inevitably led to a downfall of traditional payment cards. Non-cash payments are still dominated by credit and debit cards. Over 70% of people in the United States have at least one credit card. More than 15% of people in the United States have five or more credit cards.
The popularity of credit cards is not going away anytime soon. Physical cards are becoming obsolete due to mobile payment apps and other digital payments (Bitcoin, peer-to-peer transactions).
Mobile payment processors in the future will be able to accept a range of payment methods, including cash, conventional cards and mobile wallets. Near Field Communication (NFC) transforms the way customers and businesses transact, removing the need for traditional payment methods.
Mobile wallets are one of the fastest growing trends in mobile payment technology. Consumers love mobile wallets because they are fast, convenient, and secure.
While mobile wallet payments were only $75 billion in 2016, they are expected to reach over $500 billion by 2024. This implies an annual increase of around 80% in five years. In other words, mobile payments are growing rapidly and this trend looks set to continue.
Consumers benefit from mobile wallets, but convenience isn’t everything. Consumers will continue to use mobile wallets in the future due to security features.
Two-factor authentication is available (or may be required) in many mobile wallets. When using a mobile wallet to make online purchases, you may still need a PIN. Biometric authentication is a feature of many smartphones that ensures that only authorized users of an app can transact from a phone or smart device.
Whether unlocking a smartphone with a fingerprint or a laptop with facial recognition, most people have used biometrics and are comfortable with it.
Mobile wallets are secure mobile payment solutions due to their superior biometric identification method. It is the ideal answer to the problem of identity theft and fraud related to cash payments.
It is a reliable method to determine who owns an account or in an organization. It is easier to identify staff and thus prevent anyone from receiving unauthorized payments. By 2022, it is predicted that over 20 billion biometric transactions will have taken place.
Growth in the use of mobile applications
Mobile wallets are popular in part because they’re easy to use. Users download a mobile wallet app for their phone or mobile device, enter payment information, and then use their mobile wallet to make purchases in person or online.
This secure mobile payment system includes user identification and other security features such as not having to enter credit card information on websites or giving your real credit card to a cashier.
These user-friendly apps are revolutionizing the way people pay for goods and services.
Nowadays, people spend a lot of time on their smartphones. They like to scroll through Instagram, Facebook, Snapchat, Twitter and other social media platforms. With so many people using social media, it’s only natural that businesses would want to reach out to them.
When social users find a product or service they like on one of the platforms, they don’t have to leave the app to find it. They can start shopping by clicking a “shop now” icon in the app.
A flexible and dynamic mobile payment processor that can interact with mobile shopping carts and social media technologies is necessary for this optimized social shopping experience. This social shopping integration is a must-have feature for mobile payment gateways in the future.
Mobile Point of Sale (mPOS)
Mobile payments aren’t the only thing that’s becoming increasingly popular. Credit card payment processing is also becoming more mobile. Mobile point-of-sale (mPOS) devices are dedicated wireless devices that work similarly to cash registers and traditional sales terminals.
mPOS machines allow retailers to accept payments in an easy, convenient and secure way. Due to the mobility of mPOS, retailers can transact wherever their consumers are. A centralized payment site is useless.
Apple Stores excel at mobile outlets. Customers do not need to take their purchases to a cashier; instead, they can check in with any staff member.
mPOS is not just a fad; this is how mobile payment technology will evolve in the future. By 2022, Business Insider estimates that more than 27 million mPOS devices will be in use, up from 3.2 million in 2014.
Mobile POS devices are not limited to physical stores. They provide merchants with the ability to do business almost anywhere. mPOS can be used in a variety of ways to help merchants run their business more efficiently, including:
- Farmers markets
- Trade shows
- coffee carts
- food trucks
- Craft fairs
Online or physical businesses shouldn’t be the only options. The wireless economy is fueled by the flexibility of mobile payment and mPOS.
Mobile wallets and mobile point-of-sale devices will rule the future of mobile payment technologies. Swiping readers on smartphones at farmers markets, individuals buying lattes with easy-to-use mobile payments, and more. are all examples of emerging trends. However, automated payment capabilities will soon be available for mobile payment.
Although there is still a lot of work to do, the way is clear. Mobile payment, payment processing and payment gateways are the future.