A new age of mobile payments is coming – But are we ready?
A mobile payments system seems like a really cool idea. The idea that a customer can pay for goods by simply waving their mobile phone close to the checkout to complete the transaction. The sale will be over in a flash and then you can be out of the door in a flash. Done and dusted. This is the future and it looks like one that is worth embracing.
The contactless payment method is pretty awesome. Think about it. No more fumbling around trying to dig the correct change from your pockets or waiting for a card reader to do its thing. All you need is a smart phone, one that is capable of making contactless payments and of course enough money on the phone to make the payment; Otherwise you might have to walk away from the till feeling slightly embarrassed. Orange phones use a system called the quick tap method. All you have to do is use your credit or debit card to transfer money to your phone. It’s a good idea as your phone becomes an electronic wallet. With the Orange system you can transfer up to £150 pounds to your phone. That’s the techy stuff out of the way, so it’s on to something else.
What will the new payment method do for small businesses and traders? One idea which will go hand in hand with the new payment method is to introduce reward schemes to encourage the consumer to use the service. Another great reason for a small business or trader to adopt the mobile payment method is that they will be able to keep a close eye on customer trends. As a result a business can provide better customer service which will in turn encourage repeat visits from their customers. Mobile payments are predicted to become such a popular method according to an article on BizReport that by 2020 credit cards and even cash may be a thing of the past. This sounds crazy but it could well happen.
The 16 to 34 age bracket are the most likely candidates for taking advantage of mobile payments which makes sense as they are the ones who understand the technology behind the payment method. It’s not all good news as there are a few potential downsides to the idea, one of the main reasons being security. However such doubts can be set aside by taking a few simple precautionary steps such as locking your phone. Seriously, make a habit out of doing this and you’ll be fine.
Normally a shop has a queue, as this is bound to happen at some point, and the customers slowly make their way towards the checkout. Transactions are slow as customers wait for a card reader to get into gear or count their change. Mobile payments will be quick in comparison as the customer just moves their phone over the sales point. Queues may turn out to be yesterday’s problem.
About Judopay · Judopay simplifies in-app payments, enable frictionless checkouts and intelligently prevents fraud for leading companies globally. Our payments and mobile experts help guide businesses and their development partners to create best in class apps to make paying faster, easier and more secure. Founded by serial financial technology entrepreneurs in 2012, Judopay is backed by leading venture investors and supported by banking and card scheme partners to offer in-app payments that are simple, frictionless and protected.