What Are Mobile Payments, and How Are They Useful?

The future is cashless. Now, you might be thinking, “Well, I already have a credit card, seems pretty cashless to me.” And you’d be right — but cash-free living is now being taken even further. Forget overstuffed wallets and too many credit cards to handle. Soon, all you will need is your smartphone. This is the dream of the mobile payment revolution. But what are mobile payments? And why would you want them?

Mobile Payments Defined

Put simply, a mobile payment is a transaction made via a mobile device such as a smartphone, tablet or smartwatch. There are several types of mobile payment systems out there. You probably have already encountered one in some form or another. For example, you may have used PayPal, the popular payment platform that allows customers to transfer money online. While it began as a website, it can now be used on mobile through their mobile app. Another common option is Apple Pay, which can easily be integrated with a CNB VISA credit card. Some retailers have even developed their own apps — most notably, Starbucks. The coffee giant’s mobile platform lets patrons order drinks ahead of time and manage their accounts on their phones.

A Convenient Way to Spend

Mobile payments are an efficient and hassle-free way to pay, and they benefit both consumers and businesses. The programs needed to implement mobile payment options are neither too pricey for businesses to afford, nor are they particularly complex. They allow businesses to establish easy-to-use accounts and rewards programs, creating a customer incentive for future visits.

Customers will enjoy the streamlined transaction process as well. All their info will be stored digitally, making checkout a quick and painless experience. Plus, it is safer to carry your phone than cash or a credit card. When transactions take place with mobile payments, account numbers are not revealed to the recipient of the funds. Instead, encrypted payment codes are used. In our era of turbulent data safety, this consolidation of financial information will be good news for those who are concerned about the security of their financial data.

The technology is versatile, too. It can be used out in the world at stores or at home through online shopping. This means fewer numbers to type and pages to visit in order to place an order online. At brick-and-mortar stores, developers are trying to make mobile payments even more efficient by allowing customers to complete transactions before they have even reached the checkout counter.

The Future of Mobile Payments

Mobile payments are an exciting, cutting-edge financial development. Although there are many features yet to be built or widely adopted, you can expect mobile payments to proliferate widely in the near future. The goal is to make mobile payments more advanced, versatile and widespread, and some countries have already embraced them in significant ways. It is likely that in coming years, people will start to completely forgo tangible forms of payment. Are you ready?