Mobile Payments for the Retail Industry

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Have you ever wished that you need not carry a fat wallet in your pocket with paper bills, coins and loads of cards. Wouldn't it be nice if we could lighten our loads by using our mobile phones as virtual wallets to make payments at various retail locations?

The growing prevalence of electronic commerce and the widespread use of mobile phones have made mobile payments an interesting alternative method of payment for customers and merchants alike. Mobile payments promises to provide an alternate payment mechanism that would not only lower the cost of transactions but also will be more secure. Also, the adoption is likely to be higher as there are more subscribers of mobile phones than the credit or debit cards, especially in the emerging economies.

Mobile phones have gained an increased importance in the sector of Information and Communication technology. The options to purchase goods and services over the internet are now made available on mobile phones. Consumers can now pay for their transactions of goods and services with their mobile phones without the use of cash or payment cards.

Mobile payments are remote or in-store payment transactions that are conducted with the mobile phones. There are various methods of making the payment from secure SMS to contactless (Near Field Communications). By using a NFC Stickers normal mobile phones can be converted into NFC devices.

Security is a critical factor for mass adoption as consumers want to use a payment method that they can trust. Since simplicity and speed are crucial, then security features need to be aligned with financial risks that customers and merchants take during the transaction.

The benefits for customers to use a mobile phone to make their purchase in a retails store are related to speed and convenience. Contactless payment is particularly attractive to retail segments where speed and convenience of payment are essential like quick-service restaurants, convenience stores, parking facilities, and entertainment venues.

Merchants realize a number of benefits from contactless payment:
● Fast transaction times move customers more quickly through the payment process.

● Increased customer spending, increased frequency of purchases, and increased customer loyalty increase revenues.
● Reduced cash handling, improved payment terminal reliability, and streamlined payment processes improve operational efficiency and reduce operating costs.

Will the consumers accept mobile payments?

Security - Consumers would want surety about the security of their money as the mobile transaction could be a significant portion of their salary for people in the emerging markets.

Convenience - The speed at which the transaction is completed should be less than that of the credit card or cash and it should be hassle free. Any extra effort needed on part of the consumers would not help the cause of mobile payments.

Easy to use - Many consumers have technology phobia. They would rather use complicated but manual processes rather than technology. Hence it is important to have transactions as easy has sending a sms or moving the phone on a Contactless Reader and the transaction processing interface should be user friendly.

Retailers, as well as consumers, stand to benefit most from the mobile payment revolution. Through fast, contactless transactions, retailers can greatly increase footfall through their stores. Mobile payments have the potential to reduce queues, improve the customer experience and allow more purchases to be made in a set time.

The effect of mobile payment technology on consumers will also be profound. By replacing wallets, it means one less thing that consumers have to remember to take with them every day. As a whole, the technology will allow transactions to become faster, easier and more streamlined to monitor centrally which would provide better visibility on consumer trends.

To know more about mobile payment solutions visit Mobile Payment Services Company

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