Mobile Payment – Are You Accepting Them?
Are you accepting mobile payments yet? Mobile point of sale (POS) payments allows merchants to accept payment when ever and where ever the customer is. For example, in days of old, consumers had to carry items to be scanned, recorded or input in to a cash register. Now mobile payment solutions permit processing of credit cards in the aisle, in the parking lot or the most convenient place the customer wants to be.
Recent tech advances and investments into the mobile payment industry by tech giants Apple and Google, the mobile payment arena is sizzling hot. According to Mobile Money 2011, a report by Ernst & Young identified that “mobile payment services are expected to reach US$245b in value worldwide by 2014” and it also identified to attract 340 million customers in the same period.
What is a Mobile Payment System?
A mobile payment system is a way for merchants to accept transactions using a mobile device. There are two basic types of mobile payment devices:
- One that uses a mobile network to perform the transaction.
- One where mobile phones can be used to ‘talk’ with payment receptors in lieu of credit card transactions.
On the merchant side, a third party company offers a mobile payment opportunity. The purchaser has the convenience to pay by credit card and the merchant has the immediate opportunity to take credit cards. Aimed at the small business market, the mobile payment opportunity gives merchant an easy and affordable way to accept credit cards for purchases.
Most companies offer a card reader that can be used as a separate point of sale (POS) kiosk or an add-on plug-in to be used in conjunction with a smart phone. Merchants then are able to slide the credit card through the reader and instantly obtain the ability to accept credit card payments. This is a great benefit for small businesses that would like the convenience of credit card payments.
Mobile Phone Payment Systems
Other mobile payment plans include the ability to just pay with a wave. Rather than packing around a wallet with paper money in it phone technology has developed to allow payment by waving your phone near a payment terminal.
Near field communication (NFC) has been developing and has found a niche in big city applications. A pilot NFC communication has been implemented in New York. VisaPayWave terminals have been installed in select NYC subway terminals.
By waving their phones near the pay terminal subway riders get immediate access. It is fast and another added benefit is the reduction of paper tickets. As a result of the success in New York other transit systems are considering implementing NFC technology.