The way we pay for things is undergoing a significant transformation. Cash, once the king, is slowly being dethroned by a new contender: mobile payments. But what exactly are mobile payments, and how are they revolutionising the global financial landscape?
The Entrepreneur Weekly has answers.
Mobile payments allow you to make ‘contactless’ transactions/payments using your smartphone or other mobile device. The concept of contactless payments isn’t entirely new, but was accelerated by the COVID-19 pandemic and a desire for consumers to avoid person-to-person contact when making in-store purchases. Technologies like RFID (radio-frequency identification) have been around for decades. However, the rise of smartphones and the integration of NFC chips have made mobile payments a truly viable and convenient option. Gone are the days of swiping cards or fumbling with cash. These include:
- Mobile Wallets: Digital versions of physical wallets. Apps like Google Pay and Apple Pay store your card information and allow you to pay by waving your phone over a payment terminal.
- Peer-to-Peer (P2P) Payments: Allow users to transfer money to friends, family, or businesses through mobile apps like Venmo, Zelle, and Cash App.
- In-App Purchases: Payments made within a mobile application for services or products, such as buying an item in a retail app or making a booking in a travel app.
- Mobile Money: Services like M-Pesa provide banking capabilities in regions where traditional banking is less accessible.
With mobile payments, you simply hold your device near a payment terminal equipped with near-field communication (NFC) technology, and voila! The transaction is complete.
BENEFITS OF MOBILE PAYMENTS
Mobile wallets boast advanced security features like fingerprint recognition or PINs. These measures add an extra layer of protection compared to traditional methods where your card details are exposed. Transactions are fast, significantly reducing checkout times and queues. This is a boon for both consumers and businesses.
Additionally, many mobile payment apps have built-in loyalty programmes that reward you with points or cashback for your purchases. These incentives can add up over time, making mobile payments even more appealing. Gone are the days of relying on paper receipts or cryptic bank statements to track your spending. Mobile payment apps provide users with detailed transaction histories, allowing them to monitor their spending habits effortlessly.
POPULAR MOBILE PAYMENT APPS
The mobile payment app market is teeming with options, each catering to specific needs and regions. Here’s a glimpse at some of the most popular mobile payment apps around the world:
Google Pay: Widely used for its seamless integration with Android devices, Google Pay allows for in-store, online, and peer-to-peer transactions.
Apple Pay: Designed exclusively for Apple devices, Apple Pay offers a secure and convenient payment experience for iPhone and Apple Watch users.
Cash App: A popular choice in the US, Cash App allows for peer-to-peer payments, direct deposits, and even stock trading.
PayPal: A household name in online payments, PayPal has expanded its reach to mobile payments, offering a secure platform for in-store and online transactions.
Samsung Pay: A strong contender in the Android ecosystem, Samsung Pay is specifically designed for Samsung Galaxy devices and offers a robust feature set.
Zelle: Primarily used in the US, Zelle facilitates fast and secure peer-to-peer transactions between bank accounts.
WANT TO GET STARTED?
The Jamaica Business Development Corporation’s (JBDC) Things Jamaican™ e-commerce store at www.thingsjamaicanshopping.com is fully powered by secured and reliable contactless payments including PayPal and First Atlantic Commerce. With the ability to access global payments, Thing’s Jamaican™ offers international market access to over 500 Jamaican brands. You can take your business to the next level too. Ask us how! Visit www.jbdc.net.
