Every industry, including banking, can only function effectively with mobile technology. No one can deny that the Covid age has brought about monumental digital advancements that have infiltrated all facets of our life. Contactless payments, mobile wallets, and QR code payments are predicted to become the standard purchase method shortly.
Businesses have jumped on the contactless payment bandwagon as customers shift toward digital payment methods and away from cash. The proliferation of mobile payment apps, now standard fixtures on our cell phones, is more evident than ever. More and more financial institutions, fintech, and e-commerce businesses are responding to this need by providing various innovative mobile payment solutions. Companies invest in infrastructure to provide convenient, quick, safe, and individualized mobile payments. Hire mobile app developers from india from your next project.
Explaining Mobile Banking and Electronic Wallets
Mobile payments and e-wallets have emerged as game-changers, altering how we transact business and manage our finances in today’s rapidly developing digital economy. E-wallets, also known as digital wallets, are virtual containers that securely hold payment information online and are often used with mobile payments. These innovations have allowed us to take the first steps toward a cashless society, providing a safe and easy substitute for paper money.
The Development of Mobile Banking
Since their beginning, mobile payments have undergone significant development. At first, they utilized technologies like short message service (SMS) and universal short code (USSD) to facilitate monetary transactions. However, as smartphones became more commonplace, mobile payment systems upgraded to more sophisticated options like in-app purchases, QR codes, and near-field communication (NFC) to simplify purchasing.
Reasons to Use Mobile Payments and Their Advantages
Mobile payments are gaining popularity because of their potential to improve accessibility, safety, and financial inclusion. Mobile payments reduce the danger of loss or theft by eliminating the need for physical wallets while facilitating fast and convenient transactions. In addition to promoting economic growth and individual agency, mobile payments enable previously unbanked and underbanked individuals to access financial services. You can Hire mobile app developers from india for the best services.
Stem cell factors
Several causes, such as those listed below, have contributed to the meteoric rise of mobile payment systems:
Mobile payments are safe since they don’t involve physical touch, and customers don’t have to risk carrying cash or credit cards.
This mode of payment supports a wide variety of technologies, including near-field communication (NFC) payments and many “wallets,” such as Android Pay, Google Pay, Apple Pay, and many more, that employ incredibly stringent security measures. These wallets use high-quality microprocessors that ensure the safety of all your financial activities and account information.
2. Simplicity of use
Thanks to recent technological advancements, users can now use a mobile payment app to make and finalize transactions instantly. As a result, it’s a quick and easy job that will be easy for you. Since all that’s required to make or accept payments is a smartphone, this is a huge selling point for businesses and consumers.
3. Creating a more loyal customer base
Wallets allow customers to conveniently access the prizes, discounts, and special offers that are part of customer loyalty programs.
Mobile payment technology is expanding and has a promising future; customer loyalty is a significant reason. Customers are increasingly inclined to use mobile applications that provide access to special offers on various goods and services.
4. Mobile point-of-sale systems are in high demand.
The rising popularity of mPOS (Mobile Point of Sale) systems also contributes to the developing of mobile payment systems. Mobile point-of-sale systems are POS systems that run on cellphones, tablets, or other wireless devices but don’t require a physical connection to a terminal.
This provides an alternative to using a store’s cash register whenever you need to make or accept payment. This is perfect for trade shows, mobile restaurants, and concerts.
Because of its adaptability and the portability of the devices or terminals used for this purpose, mobile point-of-sale (mPOS), technology enhances payment procedures. By 2021, an estimated 27.7 million devices will be in use across the United States, up from an estimated 3.2 million in 2014.
5. Increased reliance on biometrics for verification
Most people have used biometrics and feel safe doing so, whether it’s to unlock a smartphone with a fingerprint or a laptop with face data. Mobile wallets are trustworthy payment solutions thanks to their sophisticated biometric authentication mechanism. It is the optimal answer to the issue of cash-related fraud and identity theft.
It’s a foolproof method of determining things like an account’s rightful owner or a worker’s identity in a business setting to ensure that no one is receiving improper compensation. Around 18 billion biometric transactions are predicted to occur in the year 2021.
6. Spontaneous expansion of AI
AI is upgrading the security and reliability of mobile payment systems. More and more consumers may soon be able to purchase using only their AI devices, like Amazon’s Alexa.
In addition to safeguarding against cyber threats, the technology will be used to detect fraud.
Increase in the use of premium app stores.
The use of mobile applications is rising in prominence today. Mobile wallet apps for customers’ gadgets and cell phones are readily available for download. Customers can safely make purchases using this app without worrying about compromised financial information.
7. Fewer people are using actual cards.
Due to the popularity of digital wallets, plastic cards are becoming increasingly obsolete. Credit cards are still the most popular form of payment in many nations, although the rise of mobile payment options is causing a decline in card usage.
The most widely used digital payment solutions, including mobile payment apps, are fast, safe, and convenient. As a result, they lessen the prevalence of traditional cards in many settings.
Mobile payments and digital wallets have entirely changed the game when making purchases. The widespread availability of smartphones has made it simple for buyers to pay with their phones. Businesses in the financial technology industry have created safe and convenient mobile payment apps that can be tapped or scanned to make a purchase. The need for actual currency or plastic cards is rendered moot by the prevalence of digital wallets. Digital wallets improve the payment process for the user and encourage repeat business through perks like awards and loyalty programs.
Guest article written by: Prashant Pujara is the founder and CEO of MultiQoS Technologies Pvt. Ltd., a leading Mobile App Development Services in India that provides eCommerce development solutions to companies of all sizes.