5 Examples of Mobile Payments
A recently carried out survey by Accenture revealed that even though 52% of North Americans are well aware of the mobile payments, only 18% use them regularly. High-income households and millennials are the most frequent mobile payment users with 38% and 23% of them using such payment modes at least once every week respectively. On the other hand, eMarketer has forecasted a 210% growth in the mobile payment transactions in the year 2016, expecting them to jump from $8.71 billion in 2015 to $27.05 billion in 2016.
So, no matter what the current market penetration figures suggest, the mobile payment industry is bound to grow tremendously in the times to come. The question is – Where will you figure in this movement?! If you’re someone who’s ready to become a part of this ongoing revolution, you cannot overlook the importance of some of the prominent mobile payment mediums of today. Here are the top 5 that are a must-know for all aspiring digital wallet/mobile payment users:
A mobile wallet from Apple, this one’s available on the iPhone 6 (or newer) and Apple Watch (when it’s paired with an iPhone 5 or newer). You can load your credit/debit card info into the wallet and use your iPhone or Apple Watch for making payments at stores and restaurants equipped with contactless NFC Point-of-Sale systems. A simple tap on these systems would process the payment. Apple Pay can also be used for making in-app purchases with an iPad or an iPhone.
Please note, you’re required to lock your iPhone’s screen with a touch ID and a pass code, in order to enable Apple pay. The same touch ID and pass code must be used for authorizing the payments too. As an added level of security, you can select a 6 digit code, rather than a conventional 4 digit PIN number while using Apple pay. It employs something known as tokenization for protecting the cardholder’s data, and like majority of high-end digital wallets, it doesn’t store any card details on the device. Apple Pay can also be disabled remotely by using the ‘Find My iPhone’ and ‘Lost Mode’ features of iPhone, or via iCloud.
At present, Apple Pay works with all major credit and debit cards issued by large US banking establishments. It is housed inside Apple Wallet (known as ‘Apple Passbook’ earlier), which can even be used for storing other critical items like coupons, boarding passes, tickets and loyalty cards.
Apple Pay can currently be used at over million different stores in the United States, including popular retail outlets like Macy’s and Best Buy. On the whole, Apple pay is pretty easy to use and does a fairly good job at keeping the payment details secure.
Android Pay or Google Wallet
Android Pay is the Google’s mobile wallet application meant for Android-based smartphones and tablets. While using Android Pay, rather than tapping your credit card on a payment processing NFC (Near Field Communication) machine, all you need to do is tap your smart phone on it instead, or better still, just wave your phone over the machine, and the payment will be done! The machine identifies the credit/debit card details associated with your Google account and uses them for processing the payment.
Please keep in mind that you require NFC technology enabled smart phones or tablets for making Android Pay payments and your phone must be running on the Android OS. Furthermore, you should have linked your credit/debit card with your Google account as well.
At present, Android Pay works only with credit/debit cards and smart phones/tablets bought in US, and only inside the US territory. It already has a large number of online and brick-and-mortar merchants on board and is working towards signing up a lot more. Google says that it’ll soon have over 700,000 store locations and around 1,000 Android apps accepting Android Pay as a valid form of payment.
One of the most commonly-accepted form of digital payments in the US and across the world, Paypal is presently accepted by around 40% of all retailers spread over North America. It is also the most regularly used digital wallet by a large majority of users. In fact, 79% respondents in a survey carried out by Statista revealed that they had actively used PayPal digital wallet for making payments.
Having over 173 million users in 203 countries, and direct dealings in 26 different currencies, PayPal is also easily amongst the most trusted and popular payment processing companies throughout the world. In fact, it’s one of the pioneers of the digital wallet services. Not only can you store your credit/debit card info on your PayPal digital wallet, you can even link your bank accounts directly to it, allowing you to carry a balance wherever you go. The PayPal wallet app can be downloaded free of cost on any of the smart phones and tablets running Windows, Android or Apple OS.
It is mostly used for making online payments and is accepted by around 74% of all the big online retailers in the United States. However, it doesn’t enjoy the same kind of penetration in the brick-and-mortar establishments. You can use PayPal mobile wallet for making in-app purchases too. It’s the only mobile wallet that you can use for making merchant payments and for person-to-person transfers as well.
Paypal is easily the best mobile payment medium for you if you do most of your shopping on the internet.
Available only with the newer Samsung Galaxy phones like Galaxy S6, Galaxy Note 5, Galaxy S6 Edge and Galaxy S6 Edge+, Samsung Pay is a mobile payment medium that works with both the modern-day NFC systems and the EMV (Europay, MasterCard and Visa) terminals conventionally used by the chip-based cards. It makes use of the MST (Magnetic Secure Transmission) technology that mimics the traditional magnetic stripe on the cards. Hence, you can use it with almost any card reader. However, it can’t be used at self-checkout terminals, gas pumps and a large number of ATMs where it’s necessary to insert the card and not just swipe it.
Samsung Pay can accommodate up to 10 different debit/credit cards and works with all major US banks including US Bank, Chase and the Bank of America. Just like Android Pay and Apple Pay, Samsung Pay also secures its transactions using the tokenization method. Apart from that, it also employs fingerprint authentication for payment authorizations. Although it doesn’t have as many retail and banking establishments on board as some of its competitors right now, it has tie-ups with some of the biggest brand names in the business. What sets it apart from its competition is its dual MST and NFC technology.
Capital One Wallet
This is a free to download mobile wallet app compatible with both Android and Apple devices. However, it can only be used with debit and credit cards issued by Capital One 360 and Capital One Bank. Just like other prominent mobile wallets, you can tap and pay with your smart phone using this app, provided that the merchant has a contactless card reader.
This mobile payment product has many useful features that can help you keep constant track of your spending. It shows the corresponding merchant name, its address and contact details on a map after every transaction. You can even use its built-in feature for taking a picture of your paper receipt and then attach it to its corresponding transaction. This feature can be highly useful in times when you wish to return an item but can’t locate its paper receipt.
It doesn’t store any of your personal financial details on the phone and logs out automatically after a few minutes of inactivity. You can choose any of the Touch ID, SureSwipe or PIN options for authenticating your transactions. It’s an excellent mobile payment product if you carry capital one cards and use them regularly.