Mobile Payment Systems: What They Are & How They Work

What’s Mobile Pay?

Digital payment methods continue evolving with each new technologies introduced, and the hottest trend now is mobile cover. The notion of using your mobile phone to make payments is particularly appealing to today’s connected customers.

However, what’s mobile cover, and is your company ready for it?

Today we’ll discuss mobile payments and why you will need to supply them to your clients. We will also talk about ways to quickly execute this in your retail shop or restaurant.

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What’s Pay Mobile?

Mobile cover, or mobile payment systems, is a general term that describes purchase transactions that you make using your mobile phone. It is an alternative payment system to money that’s comparable to a credit card because there is a whole technology behind it.

A mobile payment system is a digital technology that builds upon existing payment methods such as a credit card. In actuality, it’s often used as an extension of those payment systems. Some credit card networks such as Visa, for instance, permit you to make card payments using your mobile phone, without needing to bring your physical card. Banks permit you to use money mobile payments to withdraw from the account to pay for purchases.

Mobile payment technologies is flexible since it can be utilised in both peer-to-peer or pay-to-business models.

Peer-to-Peer

Peer-to-peer permits you to send money from your mobile phone to another. By way of instance, you can pay your buddy your share of the lease via mobile pay, or you could use it to buy stuff informally online by sending the cash right to the seller. To ship peer-to-peer, you and the receiver need to have mobile cover compatible smartphones. It is much simpler to install as you don’t require any extra devices or peripherals.

Pay-to-Business

If you’re a company, you can get mobile pay transactions utilizing the pay-to-business model. This is how, as an instance, you can use your mobile phone to shop at retail shops or dine in a restaurant. For this, you’d require a point of sale device, often an NFC-enabled terminal. It does require extra equipment and installation, but the payment procedure is faster compared to the peer reviewed version.

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What’s a Mobile Wallet?

If you are wondering”how do mobile payment systems work?” , you should be aware that a mobile wallet is in the center of it. Much like your physical wallet, a mobile wallet is an app or site used to hold your money. It’s the money in this wallet that is used whenever you create mobile payments.

All the significant smartphone players have their own mobile wallet systems. Examples include Apple Pay for iOS users, Google Pay for Android users, and Samsung Pay for Samsung smartphones. You also have other third party electronic wallets available you can choose from, but the first three are the most frequent. If you’re searching to accept mobile payments in your organization, make sure it covers those three.

Much like a wallet, you want to deposit money into your mobile wallet . You can do it via bank transfers, or adding money with your credit card as you do with Paypal. As an alternative, you can link your credit card directly to your wallet, so that it gets billed whenever you use mobile pay. A good example of this is Apple Pay, where you can sync and use your credit card information in the iTunes store.

All payment transactions, from receiving to sending, are managed using the mobile wallet app. That is why it’s vitally important that you opt for a trusted and secure mobile wallet supplier.

How Mobile Pay Works

How can pay mobile work? In practice, it is straightforward. For peer-to-peer payments, you merely need to know the facts of your receiver and set the amount. With Apple Pay, by way of instance, it’s as easy as opening the appropriate dialog in the Messages app and using the Apple Pay button to send money to that individual.

To make a purchase using pay-to-business, you want to define the amount you wish to send using your mobile wallet app. Then you hold your smartphone close (2 inches or less) into the terminal. In seconds, your payment will be sent, and the transaction is finished.

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Mobile payments utilize NFC, or Near Field Communication technology. This is a contactless technology that uses radio waves to send tiny bursts of data efficiently.

When the mobile phone is tapped near the reader terminal, it starts a conversation between the two. Data is exchanged between them using radio waves before the payment process is complete. All this happens in a fraction of a second. In actuality, speed is among the greatest features of NFC payments over EMV chips or magnetic stripes.

NFC also encrypts the data being sent, making mobile cover a far more secure method over credit cards.

Reasons to Use Mobile Pay

With different payment methods available for you, such as money or credit cards, you may wonder why bother with mobile pay. In actuality, 1 technology, EMV, is currently being touted as the next major step for credit card payments.

But the simple fact is that mobile pay provides significant benefits over other payment methods currently available. Here are some reasons why:

Secure

Safety is one of the substantial benefits of mobile payments, mainly when used with NFC technology. In actuality, when coupled with other safety features already present in mobile phones, NFC provides a substantial improvement over EMV.

1 key aspect which makes NFC payments so appealing is tokenization. This is an encryption method that scrambles the credit card info data while being stored and transmitted. Your lender does this with a special procedure and then sends it to your Apple Pay wallet for storage.

If hackers were to steal this information, all they’d get is futile, meaningless gibberish. This data is also lively, making it impossible for thieves to try to decipher it.

Most mobile pockets have layers of security to make certain that you’re the person who’s creating a transaction. By way of instance, Apple Pay requires that you give your fingerprint scan using Touch ID whenever you make payments. As it is impossible to replicate your fingerprint, thieves can not get your mobile wallet if they steal your mobile phone.

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Then there is the fact that using NFC contactless payments require that you are physically present to make the transaction. Compared to paying over the world wide web, this is a much more secure method.

Fast

Speed is the best feature of mobile payments using NFC, and it’s light years ahead of magnetic stripes or even EMV. That is important because EMV is already a significant improvement over previous payment technology.

NFC permits you to easily tap and cover in fractions of a second. In retail shops or restaurants where there is a huge volume of transactions, this is particularly useful in speeding up your earnings, therefore boosting your sales.

Convenient

Using mobile pay isn’t only suitable for you as a company, but also for the clients.

Mobile pay does not require individuals to bring loads of money when going out, which in itself can be a safety issue. And for men and women that have multiple credit cards, mobile wallets offer a convenient way to combine them into a single payment system.

Most people nowadays have their phones in their side at all times, so mobile pay basically becomes a payment method that is available 24/7. They also don’t need to get any additional devices. Provided that they have the newer smartphones, mobile payment is built into them.

Additionally, it is a lot easier to send payments to others directly to their phone, as opposed to needing to draw it in an ATM and then sending it to them . In times of crisis where you can not go out as much, mobile payments can also be incredibly fantastic solutions.

How to Accept Mobile Payments in Store

If you are interested in supplying mobile payments for your business, you need business POS applications that may support this feature. While this might be costly for many platforms, it does not need to be. The key is selecting a point of sale device, such as Revel Systems, that has hardware offering this feature.

Revel Systems iPad-based point of sale can seamlessly integrate with today’s mobile and electronic payment systems. Apple Pay users can send in payment information directly from their phone to Revel’s payment hardware using NFC technology.

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