Types of Mobile Payments You Need to Know About

Mobile payments are payments made with a mobile device. As smartphone dependence is increasing, payment technology has evolved to help consumers pay conveniently through their mobile devices. According to an estimate, the global mobile payments market will reach $3.6 trillion by 2024. Here, we discuss the various mobile payments that are gaining popularity. First, let's look at the benefits of mobile payments.

XanPay - type of mobile payments you need to know about


Table of Contents

 
What are the Benefits of Mobile Payments?
1. Convenience

Using a mobile payment service eliminates the inconvenience of counting money, writing checks, buying gift cards, or paying with a credit or debit card. It provides additional security because you don't have to handle money in public. Moreover, mobile payments help your business reach more customers, including the millennial demographic and Gen Z. The idea of not worrying about cash on hand and the safety of mobile payments is a game changer!


2. Speed

Mobile payments provide a lot of conveniences, and one of the most incredible things about them is how fast they are. Whether shopping online or in a physical store, mobile payments let you finish transactions in a flash. This is also a reason behind the adoption of mobile payments worldwide.

 

3. Security

A unique security code is generated when you make purchases through a mobile wallet. This eliminates the possibility of stealing your credit or debit card numbers online or in person. When you upload your credit card information to a mobile payment system like Google Pay, the sensitive credit card information is replaced by a series of randomly generated numbers called a token. Using this token, you can make digital purchases without revealing your real credit card information. This technology reduces fraud when processing digital transactions.

Types of Mobile Payments
1. In-app mobile payments

An in-app payment is simply what it sounds like: a digital payment that you can make within an application. With in-app payments, businesses can sell goods and services within an application's ecosystem that they control. Using the app, you can make purchases within no time. In-app purchases are popular because they improve the user experience and conversion rates, eliminating the need for users to exit the app to make a purchase.

2. Peer-to-peer Mobile Payments

Paying people directly, rather than through a middleman, is a form of peer-to-peer payment. These payments are facilitated by platforms like Venmo or PayPal, which let users send money through their smartphones. You can send money to friends or split restaurant bills with other diners by entering your bank account or credit card information. It is a simple and hassle-free way of sending money.

3. Mobile browser-based payments

Users can make card-not-present (CNP) purchases using a smartphone or tablet in mobile browser-based payments just like they would on a desktop. Users can make payments with their smartphones or tablets using credit cards, debit cards, gift cards, or even banking information. When customers visit a website on their mobile device, they can add items to their shopping cart, enter payment information into the checkout form, and then complete the purchase on their mobile device or tablet.

4. Mobile or wireless credit card readers

Businesses can turn mobile devices into point-of-sale systems for on-the-go credit card acceptance by investing in add-on credit card readers that pair with the mobile device or fit into pre-existing headphone jacks. Mobile readers enable businesses to swipe, dip, or tap credit cards (similar to countertop terminals) and accept payments on the spot. 

Rather than relying exclusively on stationary credit card terminals, businesses can accept credit cards on the go using mobile devices. Mobile payment solutions allow retailers to process transactions anywhere—even at off-site events like fundraisers, trade shows, and conferences. In addition, this technology enables physical stores to take advantage of mobile payments' convenience.

 
5. Mobile Wallets

When making purchases, shoppers can now forgo swiping or dipping any credit or debit cards in favour of using Bluetooth and similar technologies. To finish an investment, one merely has to wave their mobile device over a wireless, contactless reader that securely collects payment information.

Contactless payments rely on near-field communication (NFC). It is similar to Bluetooth, but data can only be exchanged when the devices are closed. Mobile wallets such as Apple Pay, Samsung Pay, and Google Pay all use this technology. Mobile wallets can be used for online purchases anywhere the preferred app is accepted.

 

Stay on top of the trend with XanPay

Consumers using mobile devices can make payments conveniently and with added security. Mobile payments may eliminate the need for consumers to carry around a physical wallet if they have set up payments through their smart device. A Point of Sale (POS) system that handles mobile wallets will soon become the norm with more retailers. With a dynamic POS system that addresses both in-person and online seller requirements, you can unlock additional transactions with more speed and efficiency than ever before. 

Are you looking for a modern payment solution to attract more customers? Convert and retain customers with popular local and alternative payment methods with XanPay! To learn more, visit our website.

Share On :

Related Posts By Xanpay