The Imminent Future of Mobile Payment Technology

by Guest Author on September 20, 2020

in Guest Posts

What are Mobile Payments?

Mobile payments are simply transactions such as purchases using a mobile wallet app or any mobile device. The technology of making contactless transactions or payments is actually known as NFC or near field communication. When any mobile is near enough to a card reader, the two devices communicate wirelessly to complete the payment transaction.

To get your mobile wallet, first, you need to download the app and after installing it, add your debit and credit card info. Once done, you should add secure access to any of your account’s information using either your fingertips, a password, or face recognition.

When shopping online, people are looking for simple and convenient and do not want to spend long hours placing numbers into a blank form. Among the years, the users who shop online have been increasing, and this 2020 due to COVID-19 online shopping is at its peak. E-wallet app development is allowing more companies to take their brick-and-mortar storefront to the next level and introduce them to the online world of e-commerce. Mobile checkout is convenient to both the owner of the store as well as the customer since the payment transaction works for both parties.

But How do Mobile Payments Work?

Mobile payments give all customers a different method of paying what they purchased. Instead of having to pay with their credit card, debit card, cash, or checks, they can use their mobile wallet to pay for all their purchases during checkout.

In order to use this feature, your mobile must have the wallet app; you can easily download also apps such as Apple pay or Android pay; after adding your account information, you must make sure that the Mobile POS system accepts the near field communication, a.k.a NFC. 

Once ready to pay, authenticate your identity and place it near the NFC and authorize the transaction via fingerprint, password, or face recognition. The e-wallet will transmit your encrypted bank information to the processor; this technology is extremely sophisticated, known as NCF and radio frequency identification or RFID.

Payment applications have been around since the late 90’s however, they gained popularity when they were reintroduced by Apple in 2014. Samsung Pay is also available for any customer that has an Android. Moreover, Samsung Pay works also with the card processor by convincing the POS system you swiped your cc. 

Are all Mobile Payments Applications Safe?

Mobile applications are indeed safe; once you understand the basics of how they work, their software works on tokenization technology.

When someone loads their debit card or credit card info into their mobile, the e-wallet app sends all the card details to their bank. The cc info gets replaced with a series of random numbers called tokens. The app programs the token in your phone rather than your bank card information, and the last one is not accessible anymore to anyone for scamming intentions.

Moreover, the app works only when you place your fingerprint on the home button or any other secured method you established. Also, forget about worrying about anyone cloning your magnetic stripe card or stealing your PIN number. Mobile payments are exceptionally safe.

Benefits that Mobile Payments offer to Customers


Mobile payments are a fast alternative to pay for any good or service. Within seconds after tapping your phone, you completed any purchase and got your receipt; all you need is your mobile phone. 


E-wallet development has made contactless payment very easy. There is no need to carry cash or credit cards that might get stolen. All you need is your mobile phone, which you probably always carry. Additionally, to be able to make any purchase at any store, you can also transfer money to anyone’s bank account.


Contactless payments are the preferred alternative to not touch payment processors that thousands touched daily, and during these hard times of COVID-19, they have become the top choice for customers around the world. 


Mobile payments are as secure as EMV chip cards, which are better than magnetic stripe cards. If you consider security measures, fingerprints authentication or facial recognition are definitely the most secure way to keep all your cards or information secure. 

Benefits to the Merchant

Data access

Mobile payments allow any merchant to give a better service to their consumers, and as a merchant, you will be able to access what your customers are buying, how much money they spent, and all the products they have purchased as well as the preferred method of payment. This information helps shape the customer’s buying and experience based on their choices. 

Integration of Loyalty Programs

All the rewards you offer to your customers via your company’s loyalty program is definitely easier to manage through an app that is integrated with any mobile payment app. When shopping at your store, all those customers that have your app on their phone can enjoy exclusive discounts and promos.

This specific mobile app will help the customer be rewarded for each purchase he or she makes by getting points for their purchase. Returning customers will normally spend more than first-time customers; therefore, the rewards your clientele will receive is to incite them to come back.

To Conclude

A mobile payment app is a wonderful addition to any business; during these days, companies need to be able to pivot fast to be able to stay afloat. Partnering with a good POS software company to design and create a custom mobile payment system can definitely help any business moving while customers are on the move. 

Guest article written by: William Dawsey, Global director of Finance at Chetu, Inc.

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