Mobile Payments
As the world becomes more mobile, so do payments. Contactless and near field payments are becoming more popular as they provide a way for people to pay without having to worry about carrying cash or cards with them. As these payment methods become more widespread, it is important that retailers know how these transactions work in case of a global pandemic, such as COVID-19 (Coronavirus).
What are Contactless Mobile Payments?
Mobile payments, which include mobile money transfers and mobile wallets, are any way to pay for goods, services or other items using a mobile device.
A contactless payment is a transaction made from an EMV card (chip) where the customer taps his card on a point of sale terminal and enters his PIN code if prompted.
A contactless mobile payment is beneficial to customers because it eliminates the need to carry cash or a credit card. They are beneficial for retailers because customers may be willing to spend more if they do not have to worry about carrying cash and waiting in line at a checkout counter.
What are Contactless Mobile Payments?
Mobile payments, which include mobile money transfers and mobile wallets, are any way to pay for goods, services or other items using a mobile device.
A contactless payment is a transaction made from an EMV card (chip) where the customer taps his card on a point of sale terminal and enters his PIN code if prompted.
A contactless mobile payment is beneficial to customers because it eliminates the need to carry cash or a credit card. They are beneficial for retailers because customers may be willing to spend more if they do not have to worry about carrying cash and waiting in line at a checkout counter.
What are Near Field Payments?
Near field transactions are processed as traditional magnetic stripe transactions but use the customer’s mobile device instead of a card reader for in-person point of sale (POS) transactions.
Near field payments are also known as contactless transactions because the mobile device is near a reader when it’s being scanned. A customer using a special mobile phone equipped with a smart card enables devices to pay for purchases by tapping or waving them over an antenna at the POS (Point of Sale) system.
The two types of near field payment methods include Near Field Communication (NFC) and Radio Frequency Identification (RFID).
NFC Payments – Near Field Communication (NFC) mobile payments allow customers to tap their phone on a reader at the point of sale (POS). The customer must have an NFC-enabled smartphone and download one of several mobile wallet apps, such as Apple Pay or Google Wallet to make an NFC mobile payment. Tapping your card can be done either by tapping near the bottom edge where it connects with the back cover.
RFID – Radio Frequency Identification (RFID) mobile payment systems use a small electronic device called an RFID tag to transmit information wirelessly. The data is received by the receiver, which then sends it to the merchant’s POS system for processing.
This technology can be used in contactless card payments where customers tap their cards on readers at checkout lanes or wave them close over reader devices at self checkouts. Furthermore, many mobile phone operators are constantly researching ways to enhance this technology.
Can a Business Benefit From Using Mobile Payment Technology?
Small businesses accepting mobile payments can have the same level of protection as any other business that accepts credit or debit cards.
Mobile payment security – If you’re using a mobile payment app, your transactions are protected by the EMV (Europay MasterCard Visa) chip and PIN system used in most U.S. card-present environments today, which means sensitive information is encrypted and secure.
Transaction history – You’ll have the ability to see a detailed log of your transactions from anywhere with an internet connection, and you don’t need to be near your register. That means no more logging individual receipts or having to enter complex information at tax time.
Cloud based mobile payments – For mobile payments, the cloud is a great way to store information. Cloud-based data storage makes it easier for people and businesses alike to access their files from any location with an internet connection.
Mobile payment solutions – There are some mobile payment solutions available on the market today that make it easier for you to pay with your phone. Paying by text message – It’s actually possible to use a traditional credit card and send money using an SMS-only system.
Secure mobile payments – Not having to use your credit card helps reduce the risk of credit card fraud.
How do Customers Tap and Pay With a Mobile Phone?
Mobile payment apps allow customers to tap and pay with their mobile phone. This can be done in a store or by entering the card details at an online checkout screen. Customers do not even need to swipe their credit and debit cards to make purchases. Additionally, this mobile payment solution makes the checkout process virtually hassle free. Some mobile payment apps also allow contactless payments. This means that there’s no need for PINs, passwords, or signatures when making a purchase using your smartphone.
Does a Mobile Device Have to be Used to Make a Mobile Payment?
In order to make a mobile payment transaction or mobile bank transfers, your mobile device has to be turned on and connected to a network. Each payment method is different, and some mobile payment methods require an Internet connection, while others can work without it. This depends on the app you’re using. A mobile device doesn’t have to be near or in contact with your face when making a purchase. Its proximity is taken into account.
How do Mobile Payments Work?
In order to make a mobile payment from your smartphone, you’ll need to download a mobile app. The smartphone will then connect with the payment terminal, which is usually made of a card reader and a contactless or near field antenna.
The mobile device’s proximity sends data about your purchase to be processed by the transaction system in real time without you needing to do anything else.
A cell phone can be used as contactless cards because they carry all of the same information stored on a mobile payments app. You must also ensure that your bank is set up for accepting payments, making chip card transactions, and can process payments. Not all financial institutions have mobile banking apps, and therefore payment transfers may not make it to the recipient’s bank account or a consumer’s mobile account.
Cloud Based Mobile Payment
A cloud based mobile payments puts the mobile payment provider in the middle of the transaction. The payment provider automatically covers the cost of an in-person transaction through the stored funds, and then collects payment from your credit or debit card. A cloud based mobile payment service is a convenient way to make purchases with your phone without having to manage cash all day long.
What are the Different Types of Mobile Apps Available?
Mobile phones and mobile apps are an important part of our lives. Apps are being developed everyday in an effort to make our lives a little easier to manage. Person to person payments, on mobile devices, and through mobile payments apps is a resourceful online payment solution. Being able to send money directly from their bank accounts gives consumers instant payment details for their records.
If you take a look at your phone, you will more than likely have a mobile wallet app that falls into one of 7 categories:
• Financial apps
• Social media apps
• Games/entertainment apps
• News/information apps
• Lifestyle apps
• Utility apps
• Productivity apps
Advantages to Using Mobile Apps as a Mobile Payment System
Most people spend more time using apps on their phone, than they do communicating with others. For some people, mobile payments are the future of how they will make all of their purchases. A cloud based mobile web payment refers to a service that implements mobile web technologies and offers the ability for users to make payments directly from their mobile phone.
Mobile payment systems may be more secure than credit cards and therefore provide greater peace of mind when shopping online or using a card to pay for items in person. Mobile apps can also help you avoid carrying around cash and plastic which is becoming increasingly risky and burdensome.
There are many advantages to using mobile apps on your phone:
• Transfer money
• Make credit card payments
• Manage your mobile or bank account
• Accept payments
• Make mobile web payments
• A digital wallet makes payments quicker and easier
Do All Businesses Support Mobile Payments?
The short answer is no. Some businesses can only process payments made using a mobile device if they have the third party service providers that are needed to handle mobile wallets or near field communications (NFC) transactions.
Do All Businesses Support Mobile Payments?
The short answer is no. Some businesses can only process payments made using a mobile device if they have the third party service providers that are needed to handle mobile wallets or near field communications (NFC) transactions.
What Equipment Does a
Business Need to Accept Mobile Payments?
In order to accept mobile payments, businesses must have either a mobile wallet or near field communications (NFC) terminal. Having the right equipment and a POS system is necessary to make purchases from mobile devices.
A mobile wallet is a software or application that stores contactless payment information. It can be downloaded from the app store and synced with an NFC-enabled terminal for contactless payments at checkout. However, it must have either Bluetooth LE (low energy) or Wi-Fi to connect with a POS system in order to make purchase transactions.
Transactional Premium SMS Payments
SMS, also known as text messages, can be used to process transactions without the need for contactless or NFC equipment. There are two types of SMS payment: transactional and premium. Transactional texts are sent by an issuer in response to a transaction being accepted at checkout. This message then contains transaction details that will be used on subsequent statements.
Premium SMS payments require opting into an SMS payment service with your mobile provider. After agreeing to the terms and conditions, you are then able to send a text message that will result in a transaction being completed at checkout.
Unfortunately, transactional premium SMS payments can fail if a mobile phone is not within range of the POS when it comes time to process the transaction, or if there are service interruptions.
Can Businesses Use the Direct Mobile Billing Method?
When using mobile payments, most transactions occur quickly and securely through contactless payments or near field payments. Some businesses may choose to use the direct mobile billing method for processing transactions, which means that a customer sends an SMS message in response to a transaction being accepted at checkout. This message then contains transaction details that will be used on subsequent statements.
Are Mobile Payment Processing Solutions Only for Retail Stores?
Mobile payments are not only used for retail stores, but for many other types of businesses, including restaurants, taxi services, and even for the personal use of individuals. Each mobile payment solution offers different features that meet the needs of a specific business type. For example, some mobile processing solutions can be integrated with existing credit card terminals or POS systems to help minimize disruption during power outages.
How MPG Can Benefit Your Business
Mobile payments are the future and the evolution of mobile payments is already happening. As contactless payments become more prevalent, it will be easier for you to make transactions without having to carry cash or your wallet with you. When this happens, the need for a physical card and billing information becomes obsolete as well. This means that people will have fewer opportunities to lose their money due to theft or forgetfulness, thus allowing them greater peace-of-mind when out in public.
If you’re wondering about how to accept contactless payments for your business, we can help. Contact us today and let our experts show you all of the different ways in which we can make accepting contactless payments easier and more convenient than ever before. We offer everything from NFC readers that attach directly onto an iPad or iPhone, to cloud based software solutions. There’s something here for every situation!