Find out more about Mobile Payment Systems
What is Mobile Payment Systems?
Mobile payment systems is a vast term that includes payments made at restaurants with your phone, a card swiped on a friend’s tablet, and money transfers made with your mobile device to your contacts. Mobile payment systems include everyday transactions made with an app or mobile wallet, point of sale payments done by tapping your phone on the card reader, closed loop mobile payments facilitated by companies like Starbucks for faster ordering, carrier payments facilitated by your cell phone company, and mobile card readers that you can plug into your tablet or phone to accept payments on the go. You can download a mobile payment app to make payments and top phones nowadays come with a built-in mobile payment feature. Start by checking our leader Apple Pay, and other recommended solutions in this category.
Top 12 Most Popular Mobile Payment Systems
How To Choose The Best Mobile Payment System
Mobile payment systems are a boon to consumers and businesses as they are fast, secure, and convenient. There are a number of mobile payment apps available in the market. So, how do you do educated comparisons to select the best mobile payment apps for your business? We help you in this task by detailing the main features and factors you should look for in your selection process.
Get to know each product with free trial
Start your search for the best mobile payment tools by signing up for the free trial or demo offered by leading vendors. This will enable you to perform a general comparison of features and gauge each app’s suitability for your needs. We recommend you shortlist the following programs and try them out: Apple Pay, Samsung Pay, and PayPal. These platforms have received high rankings and good reports in our mobile payment app reviews.
Best mobile payment systems offer convenient solutions that can be used by consumers, retailers and restaurants, merchants, and other businesses.
Examples of Mobile Payment Systems
- Apple Pay: A simple app for Apple devices. You can make safe purchases on the web, in apps, and in stores. Plus, you can use the Messages feature to receive and send money to family and friends. It is easier than using your credit or debit card and more secure too.
- Samsung Pay: Convert your phone into your wallet. Samsung Pay enables you to add all your membership, gift, debit, and credit cards to your devices. It has entered into partnerships with Visa, MasterCard, Discover, and American Express payment card networks. The best part is you get extra rewards for making daily purchases.
- Android Pay: A digital wallet designed by Google to facilitate tap-to-pay and in-app purchases on mobile devices. You can make payments with your Android phone, tablet, or watch. Simply add a card from any participating bank. The highlight is your info is kept safe as your card number is not shared. Instead, the app uses a virtual account number and keeps your card details hidden and safe.
- PayPal: Use the PayPal mobile wallet app to shop online and in-store. It is safer than carrying cards in your wallet. The digital wallet securely stores your financial info and does not share the details with merchants. All you need to do is remember your login info and you don’t even need to carry a physical wallet for to perform transactions.
- Google Wallet: Makes it easy, fast, and free to send and receive money. You can send money to any person in the US even if they don’t have this app. Request funds from your contacts and keep track after they make the payment. Cash out with a bank account or debit card and access the funds you receive in minutes. Finally, you can automatically transfer the money you receive to a bank account or debit card.
Types of Mobile Payment Systems
There are 4 main types of mobile payment systems:
- SMS payments. Pay for a product or service by sending a text message from your phone. This method is ideal for users who don’t have a smartphone.
- Mobile wallets. A mobile wallet stores payment info in an app. It utilizes technologies such as QR codes and Near Field Communication (NFC) and allows you to make payments on the web and card terminals and make in-app purchases.
- NFC payments. Near Field Communication (NFC) phones use radio frequency identification to communicate with each other and with NFC-enabled points of sale. The phones have to be within four inches/ten centimeters of each other. NFC technology is widely used in China, Japan, and France, among other countries, to make payments and purchases.
- WAP payments. Use the Wireless Application Protocol (WAP) facility on your smartphone to access the internet and then utilize an online payment method like Google Wallet or PayPal or your credit card to make payments. If your company wishes to accept WAP payments, contact a SMS payment solutions firm to get a WAP payment gateway installed on your website.
Key Features of Mobile Payment Systems
- Offline transactions. Don’t worry if you don’t get a Wi-Fi signal as the transactions can be stored and uploaded later for processing when network access is available.
- Tax and tip. Enables your customers to select a tip amount and automatically adds a tax rate based on your GPS location.
- Multi-device accounts. You can simultaneously use your merchant account on multiple devices and track sales on each individual device.
- Sophisticated fraud protection. The mobile payment app ensures secure and safe transactions and card data is not stored on the app, phone, or card reader.
- Attractive receipts. With some apps, you can print or email itemized receipts with a map of the transaction location and customer signatures.
- Detailed reporting. You can generate real-time transaction reports on your top-selling products. Plus, you can produce reports with custom date ranges.
Benefits of Mobile Payment Systems
- Customer convenience. Businesses can make it more convenient for their customers by accepting mobile payments. Plus, you can engage them on their smartphone by offering them coupons and upsell added products. This helps you to boost conversions and turns customers into repeat buyers and brand advocates.
- Minimizes expenses. You don’t have to buy costly point of sale machines as you can simply use a card reader or app to convert your mobile device. Plus, you can save on paper and ink as you can avoid taking printouts and simply text or email receipts to your customers.
- Boosts cash flow. First, many customers prefer using their card or phone to make payments instead of cash. Second, most mobile payment processors will transfer funds to your business account within three days. In addition, new technologies like blockchain facilitate real-time transactions.
- Integrates rewards programs. You can integrate rewards and loyalty programs as customer info is stored in the app. You can send your customers a coupon when they come near your store. Plus, you can give them coupons or reward points for every purchase they make. Research shows that repeat customers spend much more than first-timers, so you can integrate loyalty programs to boost your profits.
- Access to actionable info. You get access to customer data such as their preferred payment method, how much they spend, how frequently they shop at your store, and other info. You can use insights on their shopping behavior, demands, and patterns to market to them individually and enhance customer service. Best mobile payment systems also automatically track your inventory. For example, if you run a food truck you can track your stock levels at all times and order food items well in advance to ensure you don’t run out.
Focus on mobile security. The growth in the mobile payments sector has attracted the attention of hackers and fraudsters who think it is a new opportunity to steal consumers’ payment data. Therefore, mobile payment providers are focusing on improving security by using technology advancements such as tokenization which replaces your financial data on your device to provide extra protection. This kind of technology ensures the info hackers can get their hands on becomes totally useless.
Greater mPOS adoption. Merchants are increasingly adopting mobile point-of–sale (mPOS) systems as they are encouraged by the safety and ease of use provided by mobile payments. ABI research predicts there will be about 51 million mPOS devices by 2019. This is about 50% of the current number of POS systems. Many retailers have designed a business model that allows the use of both types of platforms.
Outdated infrastructure and technology. Mobile payments are less costly than conventional POS systems but you still need to invest in new hardware like terminals or phones that support Near Field Communication. In short, if you don’t have a smartphone or use an older credit card terminal, you can’t accept mobile payments. Plus, you need updated infrastructure and a reliable internet connection to process mobile payments. This can be an issue for small businesses in developing countries.
Read the fine print. Mobile payments are undoubtedly convenient for consumers and businesses. But businesses need to pay a price for them. For instance, a mobile payment processor like Square charges a 2.75% swipe fee for transactions. For each manually entered transaction, they charge 3.5% plus $0.15. Therefore, make sure to read the fine print about processing fees to learn exactly what it will cost you to accept mobile payments.
List of Mobile Payment Systems Software Companies
Our Score Read More
FinancesOnline utilizes our proprietary SmartScore™ approach to analyze all the solutions in the Mobile Payment Systems category so that we can help you select the best possible application. It takes into consideration the following aspects: main components, collaboration features, customization, available integrations, user friendliness, help & support, security, mobile support, general media ratings. As of now, Apple Pay is the leader in this category and our experts are really satisfied with it. Following detailed testing it had the best results among its competitors and our reviewers strongly suggest that you include it as one of the alternatives for your company.
User Satisfaction Read More
A summary of overall user satisfaction with the products in our Mobile Payment Systems category evaluated with our unique algorythm that collects user reviews, comments and opinions across a broad range of social media sites to help you make an educated purchase choice.
Pricing Read More
Each vendor in the Mobile Payment Systems category will offer a different group of pricing plans for its product and every plan will include a varied set of tools. Below we list the overal pricing for the cheapest plan offered for each product. Keep in mind that advanced features may cost extra.
Devices Supported Read More
An overview of what kind of devices and operating systems are supported by these B2B tools in the Mobile Payment Systems category, including mobile platforms and web-based solutions.
Laguages Supported Read More
Find out which languages and geographies are supported by the best B2B services in the Mobile Payment Systems category, including solutions intended for international markets and prepared for multi-cultural teams of employees.
Pricing Model Read More
Find out what pricing packages are offered by the vendors in the Mobile Payment Systems category to see which one fits your business requirements and expenses best. Be aware that certain apps can provide free or freemium accounts for you to test first.
Customer Types Read More
An overview of what groups of clients a specific B2B platform in the Mobile Payment Systems category is designed for, from small businesses and non-profits to big enterprises.
Deployment Read More
An overview of what styles of service deployement are offered by every B2B vendor in the Mobile Payment Systems category. Although the majority of modern SaaS solutions are cloud-based some solutions may offer an on-site deployment model as well.
Post by Alex Hillsberg