Mobile payments are an exciting technology that makes sending money, purchasing items and paying bills via smartphone easy and cost-efficient. While credit cards remain the go-to payment method for many, other forms such as mobile wallets, direct carrier billing (DCB), peer-to-peer transfers can all provide alternatives for sending and receiving funds.
Benefits of Mobile Payments
One key advantage of mobile payments is eliminating the need for physical wallets, cards and cash payments - saving both time and making you safer by eliminating worries over personal information or wallet theft.
Privacy & Security
Mobile payments provide increased privacy and security compared to traditional credit/debit cards that store card numbers and personal data on servers, thanks to encryption. Furthermore, some methods include facial recognition or fingerprint scanning for enhanced protection.
Payment apps like Venmo and PayPal allow users to transfer funds between devices - commonly referred to as peer-to-peer (P2P) payments - making it possible to pay back friends for purchases or split bills with others more conveniently than ever.
Pay-to-business models operate similarly to peer-to-peer payment processes, except they require a point of sale terminal for processing transactions quickly and effortlessly. Customers simply swipe their phone near the terminal and the transaction will complete instantly. This model is especially beneficial for businesses that operate from multiple locations or have a large customer base.