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After recent events, we have become increasingly using contactless payments through our phones. In fact, the share of mobile payments has more than doubled since 2018. The researchers point out that in the future, more and more consumers will use their mobile phones to make payments in stores. This means that these technologies have a bright future ahead of them.
How do Mobile Payments Work?
You can make a payment with your mobile phone or tablet because they have Near Field Communication (NFC). This technology allows data transmission at a distance of about 10 cm. They are physically carried out in retail stores, but they also have technology that helps users transfer funds between friends, acquaintances, and others. Therefore, mobile payment app development is more popular and relevant than ever.
Mobile payment consists of a technology or application that is downloaded and installed on the user’s mobile smartphone and consists of saving a bank card for future use in a so-called digital or mobile wallet.
How do they Work?
The latest models of mobile phones and tablets are equipped with an NFC chip. This chip allows the customer to open the app with the card data already loaded and bring it closer to 4 cm inside the payment machine to initiate a contactless payment.
This means that the entire communication process between the card system, the cardholder’s issuing bank, and the merchant’s financial institution takes place instantly to process a secure transaction.
Although there are several mobile wallets and payment programs on the market right now. Apple Pay, Google Pay, and Samsung Pay are some of the most widely used.
Once the cardholder has chosen which mobile wallet they would like to use, they simply need to install the app and add a bank card to start making simple and secure contactless transactions through their mobile phone.
What are the Benefits of Mobile Payments?
Mobile payments are known for their simplicity, ease of use, and convenience. But here are other aspects that users and sellers might also like:
There are no queues in the apps and you do not have to wait for anything, because mobile payments are made in about one second. Plus, no more rummaging through your wallet to get cash. For entrepreneurs, this is a great opportunity to serve as many customers as possible, thereby making more sales in a shorter period of time.
In addition to helping merchants gather more information to analyze their customers, these solutions are also extremely user-friendly. In addition, every person has at least one smartphone that can be used to complete transactions.
What could be better and easier than just opening the app and bringing your phone closer to the terminal? No more ATM withdrawals that charge fees. Everything is much easier.
The beauty of mobile payments is that they are fairly secure thanks to dynamic encryption that is completely private inside. Therefore, they are much more secure than traditional methods, especially if you use Face ID.
With our mobile phones, we are no longer limited to calling or texting our friends, acquaintances, and loved ones. With a good internet connection, we can also send and receive emails, view documents, hold meetings, do research, and more. They have become smart computers in our pockets. But now mobile phones have advanced and we can even make different payments with them.
Mobile payments give cardholders the ability to use their phones in person or peer-to-peer in a way that allows them to make transactions or transfer funds easily, quickly, and securely. So why not take advantage of these opportunities?