In our technologically advanced society, everything seems to be going digital. This includes bank management such as money transfers and debit orders using mobile payments.
The days of standing in long queues are over. Now you can make transactions straight from your mobile device. You can perform many other bank related tasks with a simple click of a button. So let’s delve more into what mobile payments are and what this technology can do for you.
What are Mobile Payments?
Mobile payments are defined as making digital monetary transactions
using a mobile device. You can pay for goods and services digitally by linking your credit or debit card to a mobile app. You’re able to pay for anything without using physical cards or money.
Technology Support for Mobile Payments
To perform mobile payments, you need the cright electronic device that supports the technology. You’ll need a high-end smartphone with integrated Near Field Communication (NFC)
. The NFC technology allows your device to be digitally connected with payment terminals.
Most banks also offer online services where you can efficiently perform EFTs (electronic funds transfer) without visiting the branch. Online banking services also require you to link your credit card or debit card to a mobile app creating a digital wallet
Subsequently, you’ll link your credit card to the mobile payment app which creates a virtual wallet. Some digital apps are only designed for specific smartphone brands such as:
- Apple Pay for iPhones.
- Samsung Pay for Samsung phones.
- Google Pay for Android devices.
What Is a Digital Wallet?
A digital wallet, also known as an E-wallet, is a virtual money pocket integrated into your mobile payment app. The digital wallet allows you to see how much money is left in your virtual wallet and gives you a detailed analysis of your transaction history.
The Advantages of Mobile Payments
The increase in people accepting mobile payments is exponential. People have busy lifestyles, so visiting stores or banks to make payments aren’t feasible for them. Luckily there are countless advantages of using mobile payments.
- Added Security Now you can make transactions without having to share your details with a clerk or teller. Mobile apps store your account details, and they are fully protected. You’re the only person who can see your personal details.
- Optimal Payment Speed When paying for goods and services through your mobile app, the results are immediate. You can pay for anything fast in the comfort of your own home simply by performing a few clicks.
- Digital Wallet Monitoring Your e-wallet allows you to monitor your transaction history. You’re able to see money deductions, debit orders, and what you’ve spent in a day. Digital wallets give you a detailed breakdown of all your transactions, keeping you in control of your finances.
- Less Paper is Used Another positive aspect of mobile payments is it’s completely paperless providing an eco-friendly alternative to monitoring your payments.
Mobile Payments Vs. Credit Cards
Credit cards run the risk of breaking or getting stolen. While there are also these potential threats for your mobile phone, most smartphones come with security locks. Thieves won’t be able to access your device if you have sufficient security locks.
You can also access your mobile payment app through another device by re-entering your details, so a broken unit doesn’t prevent you from making payments.
Weighing the Risks
The risks of mobile payments shouldn’t hinder you from opting from using the digital platform. But you should consider them carefully. There is a potential risk of malware on digital devices. Hackers are digital thieves, and they use malware to steal personal information.
This can be solved by making sure you read the app’s terms and conditions & apply extra digital security measures. Use advanced protocols that lock your account as soon as there is a potential threat.
Another potential risk is mobile theft. Make sure your phone has a security lock in place, and you log out of all your payment apps after using them. You’ll be glad you had this in place if your phone gets lost or stolen.
Mobile payments are designed for this busy society. No more taking time off work to pay your rent on time. Perform a mobile payment, and it will be done & dusted instantly.
References and Sources
1. Debt, Fraud Risks for Mobile Payment Generation. https://www.creditcards.com/credit-card-news/mobile-payments-apps-lead-to-more-debt-fraud.php
2. How Mobile Payments Are Failing – and Credit Cards Are Getting Better. https://www.scientificamerican.com/article/pogue-how-mobile-payments-are-failing-and-credit-cards-are-getting-better/?redirect=1
3. Things You Really Should Know About Mobile Payments. http://money.com/money/3852295/mobile-payment-apple-pay/
4. Different Types of Mobile Payments Explained. https://www.mobiletransaction.org/different-types-of-mobile-payments/