As technology races ever forward, businesses have to continuously update their systems at a breakneck pace just to keep up or—at the very least—not fall too far behind. One of the newer systems beginning to make its mark is mobile payments—a payment system that allows clients and customers to pay for goods and services through a simple swipe of their mobile phone or device. As people start to look for faster and easier ways to do pretty much anything, mobile payments are sure to become the wave of the future for many businesses.
How Do Mobile Payments Work?
Mobile payments are made possible through the use of a mobile wallet. This works by storing the user’s banking or credit card details which can then be used to pay for goods and services through their mobile device. While older forms of mobile payment involved using a QR code, the system has quickly moved on to using NFC (near field communication) to make these payments. NFC works by bringing the mobile device within two inches of the payment reader and exchanging information—this has been adopted to replace QR code mobile payments because it’s more secure.
What are the Benefits?
While mobile payments are still not a widely-used payment method in America, it is catching on quickly with the younger generations (Millenials and Gen Z) who are permeating the job market as well as the consumer demographic at a rapid pace. They will be more interested in these emerging technologies that aim to make their lives easier and more efficient. If your business is in a metropolitan area and many of your customers are in a younger demographic, a mobile payment system could help you create another link to your clientele and offer a reputation for being forward-thinking and easy to do business with.
What are the Drawbacks?
When it comes to technology, the main concern for the user is security. With some mobile payment systems, sensitive information is offered by the client without much assurance of its security. While mobile payments have been seen as generally secure, they aren’t foolproof. Those who experience or recall major information breaches, such as the Target database hack of 2013, will be warier to adopt these new technologies that require them to load personal and sensitive information into a third-party application. If you choose to adopt a mobile payment system, NFC is the way to go—it’s more secure than the alternatives and will offer better peace of mind for the client. Also, mobile payments have already begun turning to NFC as their primary method, so choosing an outdated mobile payment system that does not support NFC won’t be a sound investment.
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