Swiping a credit card to make a payment is quickly becoming obsolete. Newer technologies, like mobile payments, are changing how people make payments. Here are four reasons why mobile payments will take off:
Apple, Google, Samsung and others have all either implemented or unveiled mobile payment applications. Users will be tempted to use them because of their integration into the software and hardware systems of their phone.
Apple's Apple Pay is probably the most widely used one of these, and the Cupertino company expects it to be accepted in 1.5 million locations by the end of 2015, according to Forbes. Google is set to launch their application, Android Pay, with the release of their new Nexus devices and Android version within the next few months. When it was announced in May, they said that over 700,000 stores and 1,000 mobile shopping applications will accept the service.
These applications are going to be more secure than magnetic strip cards, with security on a similar level as EMV cards. Also, give the platforms, the developers can easily roll out software updates, providing even further security down the road.
In order to incentivize their use, coupons and discounts may be sent directly through the payment application.
"Mobile wallets are an opportunity for marketers to engage with customers in real time. If you opt in, they can push a coupon and create a direct relationship and offer a seamless way to purchase right from their mobile device," said McGuire.
Ease of use
The process of using these applications is so simple that it will draw people to them. Customers simply open the application, select which card they want to use, and tap their phone to the reader.
The good thing is that the technology that makes these applications possible is built into most newer POS card processing systems. If you've upgraded to accept EMV or are looking to, you may not need different hardware. If your company is in need of a new credit card payment processor, be sure to shop with 911.