4 minute read
Mobile payments and mobile commerce (mCommerce) are no longer niche payment options. Frictionless contactless payment experiences, peer-to-peer (P2P) payments and improved payment capabilities on mobile devices have acted as catalysts that have moved mobile payments into mainstream consciousness. More secure and user-friendly security features and processes have also supported this development with Strong Customer Authentication 2 (SCA2), tokenisation and encryption on saved cards.
The popularity of mobile payments will continue to grow as future generations of consumers inherit a digital-first approach to payments. In fact, paying with their mobile phones may become the de facto payment preference for younger generations.
The rise of digital wallets
Physical debit and credit cards are becoming less popular as more people opt to pay with digital wallets, using their smartphone or wearable device. And since digital wallets don’t have a transaction limit, this contactless payment method makes paying at the point of sale quick and efficient, no matter how large the transaction.
The convenience of QR code payments
QR codes began life in the 90’s as machine-readable barcodes used for labelling car parts. It has taken two decades for QR codes to fulfil their potential as an alternative way to pay. The impact of COVID-19 drove this change as merchants adopted QR code payments to offer their customers a payment option with limited or no physical interaction.
Now, QR code payment functionality is more appreciated because it can support features like pay-at-table, P2P payments, donations and unattended payment purchases. Consumers simply scan the QR code to complete an order and pay through their smartphone. The payment feature is proving popular with businesses because it’s a quick, easy way to pay, and their staff can concentrate more on their customers and less on the payment transaction.
In-app payments
An in-app payment refers to a financial transaction that takes place within a mobile application or software platform. It allows users to purchase goods or services directly from the app without having to leave it. Mobile apps, games and other software that offer additional features, content or functionality as virtual goods or services have moved to adopt this payment feature. Asia points the way in terms of their potential with “Super Apps” like We Chat and Alipay proving popular.
Social commerce
Over the past two decades, social media platforms have evolved to become mobile-responsive. This ensures a smooth user experience and enables seamless transitions from social media platforms to e-commerce experiences.
In fact, over 80% of Irish businesses have a social media page helping them engage with their customers online and boost sales. This is vital as future generations will likely search for and purchase products through social media—all from their smartphone. And when customers can make purchases without leaving the social platform, this creates a streamlined customer journey with no interruption to their user experience.
Get the right mobile payment solution for your business
As mobile payments continue to gain momentum, it’s important that you’re prepared. If you’re ready to accept digital wallets and enable QR code, in-app and social commerce payments, we’re here for you. Get in touch to explore what’s possible in mobile payments through the form below, or give us a call.