Paying in physical cash or by debit/credit card has always been the payment option in existence for quite some time. Now QR codes and payment apps have paved the way for seamless mobile payment systems. QR codes now have been replaced by apps.
US Bancorp and The Federal Reserve of the United States once conducted a survey among citizens. Most of the respondents were hesitant to carry large amounts of cash. A reason behind this is the shift in consumer attitudes towards paperless cash.
Phones today work as calculators, organizers, diaries, cameras, galleries, and the like. Using them for payments adds more to the good side.
Mobile payments are now mainstream and are also improving. Here we will now see the main kinds of mobile payment systems and see which one is the best.
First things first – what are mobile payment systems?
Professionals from a mobile app development company in Dubai explain that Mobile payments are made as both a product and as a service, and conduct operations via both a smartphone and a tablet.
Mobile payment systems do utilize debit/credit cards, and bank account details but conduct electronic transactions using these details in a safe and secure manner. They are used for payment of certain goods and services via mobile apps.
How good are mobile payment systems? They nowadays represent a shift in consumer payment habits and preferences which provide peace of mind, convenience, and a secure alternative channel in place of carrying cheques and cash, and cards most of the time.
Let us now explore the main kinds of mobile payment systems and the way they work.
The main kinds of mobile payment systems
Browser-based mobile payment systems
Mobile payment systems based on browsers are web-based payment systems, the fundamental kind of online payment systems. They provide CNP (Card not present) transactions to customers through either gift cards, debit/credit cards, or provision of banking information (ACH) through their phones or tablets.
CNP transactions are common for orders placed remotely when cardholders are ordering online. The customers enter the payment and account details on a web platform (website notably) on either computers or phones, for buying something online (or for transferring payments).
Some websites offer built-in payment systems (PayPal, Amazon) whilst others are using external payment options. The external payment options send consumers to a different browser window to complete transactions. In any way, both the checkout and payment processes take place in browsers.
Consumers can use their mobile devices to access sites, add their desired items to carts and complete the purchase process by filling out the needed information on the checkout form present.
The best part of such is that it does not require any re-installation. Also, their APIs can be easily integrated into most already existing sites giving brands and companies the opportunity to capitalize on the existing user base.
Mobile payment systems based on apps
They are similar to browser-based payments. But instead of navigating in browsers, users utilize a dedicated mobile app. They can pick and purchase products/services within a secure ecosystem. All they need to do is register their card or account information only one time and make their purchase in an instant.
App-based mobile payment systems are quite common among most large businesses and corporations and are making strides in the restaurant industry. Starbucks, McDonald’s Pizza Hut, and Burger King have created dedicated mobile apps to help consumers make the needed purchases.
Mobile credit card reading systems
They are a new take on the old-fashioned countertop card terminals. Instead of relying on fixed machines, these card readers pair well with mobile devices and are easy to move. They help turn mobile devices into Point of Sale (PoS) systems which help in easy payments and reduce the hassles of waiting in lines.
They do work in the same way as their fixed countertop counterparts, as consumers can either swipe or tap their cards, and accept payments on the spot right there.
Conclusion
Mobile payment systems are indeed a blessing. They not only aid consumers in proper payments but also help consumers make secure and convenient payments as well. Moreover, they help customers make payments without standing in a queue.
