Spotlight on Mobile Payments in 2013
Advancements in mobile technology in the payment processing space is creating great opportunities to deliver cutting-edge products and services to the ever-growing number of smartphone users, by means of near field communication (NFC) technology and the development of the mobile wallet.
NFC technology helps software developers to enable merchants to process transactions at the point of sale, using devices consumers now use more often than personal computers — their smartphones.
With NFC technology, a smartphone can be used as a point-of-sale (POS) terminal, or for the purposes of authorizing a transaction where the mobile device is used to pay for goods and services by tapping, touching, or waving at a contactless point of sale terminal. Not only do mobile remote payments enable two parties to send and receive payments for goods or services, individuals may also exchange funds through mobile money transfers from any location.
Customer loyalty vendors can provide opportunities for shrewd retailers to access customers interested in mobile payments and improve their customer experience. Merchants can further expand and enhance these relationships through specific and targeted loyalty programs and offers.
In the United States, EMV (a standard for inter-operation of chip card technology developed by Europay, MasterCard, and Visa) is finally arriving and the payment landscape is changing and evolving. Over the next two years, software vendors will need to add functionality to accept payments from various electronic wallets and support online validation and redemption for LDOCs (loyalty, discounts, offers, coupons) from service providers in order to keep up with the times.
As mobile technology advances, American consumers will soon use EMV-enabled smartphones to shop at the markets and retail stores who embrace this new technology with everything they need to make a purchase conveniently stored in their phone. Additionally, shoppers will gain access to personalized offers and deals and be able to pay with stored debit or credit cards. Virtual wallets can help save consumers some time and money and offer added security benefits of data storage in The Cloud.
Merchants may soon be able to enjoy benefits of the mobile wallet that:
- Improve their cash flow without the delay of bounced or fraudulent transactions;
- Cut expenses by substituting mobile coupons and promotions rather than paying printing and distribution costs;
- Increase sales from use of promotions;
- Gain access to detailed information on customer shopping behavior and locations,
- And improve fraud prevention by reducing events of employee theft of credit card information
The mobile wallet technology space is still in its beginning stages before widespread adoption takes place. It is a rapidly evolving market and one that should not be ignored if you want to get a jump on the competition. So do your research now to uncover technologically advanced solutions that can support your business requirements and help you grow your venture by gaining a competitive edge.