When it comes to mobile payments, there’s no denying its rapid growth and overall power on our businesses. From mobile payments to digital wallets and contactless payments harnessing NFC technology, the mobile payment industry is constantly evolving.
Adapting to these new technologies is not only valuable to your business — it is crucial. Today’s consumers are always looking for quicker and more convenient and secure ways to pay for their goods and services.
Failing to stay up-to-date with the latest in payment technology can end up leaving both you and your business in the dust. Consider these mobile payment industry statistics.
Mobile payment revenue is expected to surpass 1 trillion U.S. dollars in 2018. The number of in-store mobile payment users in the U.S. is predicted to reach 150 million by the end of 2020.
To gain a better understanding of how these types of tech work, look no further than the three main types of payment technologies that outlined below to learn how they’re paving the way for next-gen payment technology.
What are Mobile Payments?
Mobile payments are a modern method of facilitating transactions. The category umbrellas numerous forms of new-age payment channels that function through internet usage or near-field communication (NFC) payments processes. Transactions require the use of a mobile device, but do not always require the physical presence of a traditional form of payment such as cash or credit/debit cards. Consumers can link their digital devices or accounts (such as Apple Pay, Samsung Pay or applications like Venmo) or can complete a mobile payment when a chip reader is available on a mobile device for a company.
Encryption with Digital Wallets
Digital wallets are identified in two categories: remote or proximity wallet. Remote refers to the digital wallets mentioned above that operate through internet channels. You do not need to be near the recipient to transfer funds. Proximity wallets are those that work through NFC technology. Unlike physical wallets that can be stolen, digital wallets provide benefit in their encryption of personal information. Digital wallets are secure with uses of encryption in combination with biometric measures, artificial intelligence and two-step authentication to access or approve transactions.
The Power of NFC Technology
Near-field communications (NFC) is the technology that makes contactless payments possible. Enabled by an encoded chip, contactless payments are a step beyond digital wallets in the sense that they do not require the involvement of a mobile device. As seen with wearables at the Pyeongchang Winter Olympics in partnership with Visa, contactless payments require the chip that is linked to respective accounts to be the item that is need to be “tapped” against readers to enable payments.
Mobile payments, digital wallets and contactless payment improvements have been quintessential to the rapid development of the world of mobile payments. Their ease of use, security and convenience have become a standard expectation among today’s consumers. Because of this, businesses need to change how they think about payment processing and adapt to these disruptive innovations.
How can business leaders stay ahead of payment technologies? Future-proof your business and stay at the forefront, by learning from top innovators in mobile payments, digital wallet and contactless payment fields. Attend this year’s Mobile Payments Conference to learn more about how the world of mobile payments is evolving. Get your Mobile Payments Conference 2018 tickets today.