Consumers, retailers, banks, and payment processors form a complicated network in today’s payment processing environment. Recently, there has been a massive change from physical to digital payment, especially with the need to use contactless payments due to the pandemic.
Online sales, smart devices, and mobile payments transform how consumers search for and pay for products and services and how payment processors accept, secure, and facilitate transactions.
It might be tough to stay up with the current developments in mobile payment technology since it evolves so quickly. We’ll go through some of the technologies that are reshaping how customers make payments and how mobile payment gateways facilitate such transactions.
Going contactless instead of physical payments
The rise of mobile wallets has inevitably resulted in a fall in traditional payment cards. Non-cash payment is still dominated by credit and debit cards. Over 70% of people in the United States have at least one credit card. More than 15% of people in the United States have 4 or more credit cards.
Credit cards’ popularity isn’t going away anytime soon. Physical cards are becoming obsolete due to mobile payment apps and other digital payments (Bitcoin, peer-to-peer transactions).
Mobile payment processors in the future will be able to accept a range of payment methods, including cash, conventional cards, and mobile wallets. Near-field communication (NFC) transforms how customers and businesses conduct transactions, removing the need for traditional payment methods.
Mobile wallets
Mobile wallets are one of the most rapidly expanding trends in mobile payment technologies. Consumers like mobile wallets because they are quick, convenient, and secure.
While mobile wallet payments were only $75 billion in 2016, they are expected to grow to over $500 billion by 2024. This implies an annual increase of about 80% in five years. In other words, mobile payments are fast expanding, and this trend appears to be set to continue.
Digital authentication
Consumers benefit from mobile wallets, but convenience isn’t everything. Consumers will continue to use mobile wallets in the future because of the security features.
Dual authentication is available (or perhaps required) in many mobile wallets. When utilizing a mobile wallet to make online purchases, you may still need a pin. Biometric authentication is a feature on many smartphones that ensures that only authorized users of an app may make transactions from a phone or smart device.
Whether it’s unlocking a smartphone with a fingerprint or a laptop with face recognition, most people have used biometrics and are comfortable with it.
Mobile wallets are safe mobile payment solutions because of their superior biometric identification method. It’s the ideal answer to the problem of cash payment-related identity theft and fraud.
It is a reliable method of determining who owns an account or in an organization. It is simpler to identify personnel and thus prevent anybody from receiving unauthorized payments. By 2022, it is expected that over 20 billion biometric transactions will have occurred.
Growth of mobile app use
Mobile wallets are popular in part because they are easy to use. Users download a mobile wallet app for their phone or mobile device, enter payment information, and then use their mobile wallet to make purchases in person or online.
This secure mobile payment system includes user identification and other security elements such as not needing to enter credit card information on websites or giving your actual credit card to a cashier.
These user-friendly apps are revolutionizing the way people pay for goods and services.
Social shopping
Nowadays, people spend a lot of time on their smartphones. They like scrolling through Instagram, Facebook, Snapchat, Twitter, and other social media platforms. With so many people using social media, it’s only natural for businesses to want to reach out to them.
When social users discover a product or service they enjoy on one of the platforms, they don’t have to leave the app to find it. They may start shopping by clicking a “shop now” icon in the app.
A flexible, dynamic mobile payment processor that can interact with mobile shopping carts and social media technologies is required for this optimized social buying experience. This social shopping integration is a must-have feature for mobile payment gateways in the future.
Mobile point of sale (mPOS)
Mobile payments aren’t the only item that’s becoming more popular. Credit card payment processing is also becoming more mobile. Mobile point of sale (mPOS) devices are dedicated wireless devices that function similarly to traditional cash registers and sales terminals.
mPOS machines allow retailers to take payments in a simple, convenient, and secure manner. Because of the mobility of mPOS, retailers can complete transactions wherever their consumers are. A centralized checkout site is unnecessary.
Apple stores excel in mobile point-of-sale. Customers do not need to bring their purchases to a cashier; instead, they may check out with any staff.
mPOS isn’t simply a fad; it’s how mobile payment technology will go in the future. By 2022, researchers estimate that over 27 million mPOS devices will be in operation, up from 3.2 million in 2014.
Mobile point-of-sale devices are not limited to brick-and-mortar stores. They provide merchants the ability to do business almost anywhere. mPOS may be used in a variety of ways to help merchants run their businesses more efficiently, including:
- Farmer’s markets
- Concerts
- Trade shows
- Coffee carts
- Food trucks
- Craft fairs
Online or brick-and-mortar businesses should not be the only options. The wireless economy is being fueled by the flexibility of mobile payment and mPOS.
Final thoughts
Mobile wallets and mobile point-of-sale devices will rule the future of mobile payment technologies. Swipe readers on smartphones in farmer’s markets, individuals buying lattes with easy-to-use mobile payments, and so on are all examples of emerging trends. However, automated payment capabilities are coming to mobile payment in the future.
While there is still a lot of work to be done, the path is clear. Mobile payment, payment processing, and payment gateways are the future.