Mobile means something that can move or be moved easily. Today, we use the term most often to describe a device that’s capable of making phone calls and connecting to the internet.
Customers can pay through their phones using mobile payment options like Google Pay, Samsung Pay, or a digital wallet like PayPal or Venmo. These options offer faster checkout, better security, and other conveniences that improve customer experience.
Simplify Conversions for Mobile Users
Mobile payments are a category of regulated transactions that take place on smartphones and other mobile devices. They enable consumers to pay for goods and services on their phones, including eCommerce purchases and peer-to-peer transfers.
A smartphone’s touchscreen makes it easy to use a mobile payment app or terminal to complete a transaction. The technology behind these mobile payments is encrypted to keep personal and financial information safe from unauthorized access. Mobile payment apps like Apple Pay and Google Pay can be used to make in-person or in-app contactless transactions. These are popular with shoppers who want to make a quick and simple purchase, especially when shopping online or on a mobile device.
Peer-to-peer mobile payments also offer convenience by enabling users to transfer funds directly from their phone to a friend or family member. These are a popular way to buy gifts or to split bills and are generally facilitated by digital platforms like Venmo. In addition, a number of eCommerce and gaming apps also support these types of mobile payments.
Another type of mobile payment is called direct carrier billing (DCB). DCB allows consumers to pay for products and services using their phone bill or prepaid SIM card and is often used by telecommunication companies for subscriptions and digital content.
In order to use these mobile payment methods, a consumer must first download the appropriate mobile payment app or terminal onto their phone. They can then link their credit or debit cards to the payment app or terminal, and when it comes time to purchase something, they simply hold their phone close to the merchant’s point-of-sale terminal. These are a convenient option for people who frequently shop at a particular store or restaurant, as they can save their payment details to avoid the need to enter them each time they make a transaction.
Sound wave-based mobile payments, also known as “sonic fingerprinting,” are a cutting-edge type of mobile payment. These are processed without the need for a network connection by sending unique sound waves to the customer’s smartphone, which converts those signals into encrypted data that is then finalized and transmitted to the merchant.
Make it Easy for Your Customers to Pay
Mobile payments give consumers the convenience of paying with the device they use to shop. They don’t have to rummage through their wallets for cash or a debit card, and they can often make purchases in a few seconds. These quick transactions are especially appealing for businesses with long checkout lines, like fast-service restaurants or retailers.
Mobile payment apps link a customer’s credit and/or debit card with a mobile device or smartwatch. They can then use the app to make a purchase at a merchant’s physical or online store by tapping their phone or watching on a payment terminal that supports NFC (near-field communication) technology. They can also click a mobile wallet icon on many merchants’ checkout pages to pay with their preferred method of payment.
Depending on the mobile payment app, customers may also have other features available to them that can further streamline their experience. For example, some apps support loyalty programs that encourage frequent purchases, or they can enable users to make a quick transfer of funds to another person’s bank account.
While not everyone will want to carry a bulky wallet around with them, most people are accustomed to and expect to have multiple ways of paying using their mobile devices. In addition to swiping or inserting their cards, they can also use mobile payment apps, enter their card details on an online checkout page, automatically charge a preapproved card attached to a mobile app, or follow a link to a digital invoice emailed to them by the merchant.
Other mobile payment options include text-to-pay, which lets customers send and receive payments via SMS, or direct carrier billing, which charges purchases to a customer’s mobile phone bill. These options can be used for in-store or online shopping, and they’re particularly popular among younger shoppers.
Make it Safe
A major advantage of mobile payments is the fact that they’re secure and offer an added layer of privacy. When using tap to pay, a customer’s phone or mobile device sends a signal to the point of sale via radio frequency to complete the payment. This eliminates the need for them to hand over their credit or debit card. This is particularly convenient for shoppers, as it means they don’t have to worry about the card being stolen. It also helps to protect their personal information from people they might not want to know about their purchases, such as a potential employer or date.
Moreover, mobile payments use technology like Touch ID and PIN inputs to make them even more secure than a physical card. They also employ tokenization, a process whereby the actual account details are sent to the bank and replaced with a unique set of numbers. This way, if the user’s phone is lost or stolen, their information is unusable and there is no risk of fraud.
Another mobile payment option is peer-to-peer payments (P2P). This allows consumers to easily make cash gifts or split a restaurant bill with friends and family using a mobile payment app. For businesses, this can be a great way to reduce the hassle and expense of calculating and sending checks.
Additionally, mobile payments are a popular way to pay for goods and services online. This is because they are quick, convenient, and secure, and many customers are already familiar with them from using websites like Amazon or e-commerce platforms such as Shopify.
Alternatively, mobile payments can be made using a virtual terminal. These work and look similar to a traditional credit card terminal with a magnetic stripe or chip reader, a keypad, and a display screen. These are perfect for businesses that are on the go and need to be able to accept credit cards from customers in a wide variety of locations.
Give Your Customers the Convenience They Want
Mobile payments are convenient for consumers because they don’t have to find a wallet, hunt through the bottom of a bag, or wait while a transaction processes at a point of sale. Mobile payments also allow a business to expedite transactions and offer a seamless shopping experience whether customers are buying online or in-store.
The most common type of mobile payment is when a consumer taps their phone on an NFC (near-field communication) compatible terminal in a brick-and-mortar store to make a contactless transaction. They can also use their mobile wallet – an app on their smartphone that securely stores their card details – to pay online. This is commonly referred to as BOPIS (buy online, pick up in-store).
Another popular form of mobile payment is a QR code-based payment which allows a consumer to pay with their phone by scanning a barcode on a screen and following the instructions on screen. This is a particularly popular form of mobile payment because it is simple and quick to use, and all the information is securely stored on their smartphone.
Lastly, consumers can use a mobile payment service to make direct carrier billing (DCB) payments which is when they pay through their cellular provider rather than using their bank or credit card. This is most common with digital services like apps, TV voting, and charity donations, but can also be used in a number of physical shops. All these options can be combined with each other to create a seamless mobile payment experience.
In addition to allowing consumers to choose the payment method that’s most convenient for them, mobile payments can give businesses access to real-time data and help with decision-making. For example, a business can track what’s selling best, when they receive the most orders, and how their customers are paying so they can better serve their clients.
To ensure that your customers know about the mobile payment options available at your business, it’s worth creating a page on your website or social media explaining what you accept as well as posting a sign in your shop. It’s also a good idea to do some research into the fees that different mobile payment apps and systems charge so that you can calculate how they might impact your gross margins.
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