What do you need to know about mobile payments?

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After recent events, we are increasingly using contactless payments through our phones. In fact, the share of mobile payments has more than doubled since 2018. The researchers note that in the future, more and more consumers will use their mobile phones to make payments in stores. This means that these technologies have a bright future ahead of them.

How do mobile payments work?

You can make the payment with your mobile phone or tablet because they have Near Field Communication (NFC). This technology allows data transmission over a distance of about 10 cm. They take place physically in retail stores, but also feature technology that helps users transfer funds between friends, acquaintances, and others. Therefore, mobile payment application development is more popular and relevant than ever.

Mobile payment consists of a technology or application that is downloaded and installed on the user’s mobile smartphone and consists of saving a bank card for future use in a so-called digital or mobile wallet.

How do they work?

The latest models of mobile phones and tablets are equipped with an NFC chip. This chip allows the customer to open the application with the card details already loaded and bring them up to 4 cm inside the payment machine to initiate a contactless payment.

This means that the entire communication process between the card system, the cardholder’s issuing bank and the merchant’s financial institution is carried out instantly to process a secure transaction.

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Although there are several mobile wallets and payment programs on the market at the moment. Apple Pay, Google Pay and Samsung Pay are some of the most used.

Once the cardholder has chosen which mobile wallet they would like to use, they simply need to install the app and add a bank card to start making simple and secure contactless transactions via their mobile phone.

What are the benefits of mobile payments?

Mobile payments are known for their simplicity, ease of use, and convenience. But here are other aspects that users and sellers may also like:

Speed

There are no queues in the apps and you don’t have to wait at all, because mobile payments are made in about a second. Plus, you no longer have to rummage through your wallet for cash. For entrepreneurs, this is a great opportunity to serve as many customers as possible and therefore make more sales in a shorter period of time.

Comfort

In addition to helping merchants gather more information to analyze their customers, these solutions are also extremely easy to use. Also, each person has at least one smartphone that can be used to complete transactions.

What could be better and easier than opening the application and bringing the phone closer to the terminal? No more ATM withdrawals that charge fees. Everything is much easier.

Security

The beauty of mobile payments is that they are quite secure thanks to dynamic encryption that is completely private inside. Therefore, they are much more secure than traditional methods, especially if you use Face ID.

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Conclusion

With our mobile phones, we are no longer limited to calling or texting our friends, acquaintances and loved ones. With a good Internet connection, we can also send and receive emails, view documents, hold meetings, do research, and more. They have become smart computers in our pockets. But now mobile phones have advanced and we can even make different payments with them.

Mobile payments give cardholders the ability to use their phones in person or peer-to-peer in a way that allows them to easily, quickly and securely make transactions or transfer funds. So why not take advantage of these opportunities?

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Categories: Technology
Source: vtt.edu.vn

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