Because mobile technologies are developing so rapidly, it is hard to follow the latest trends. Here some of the innovations that shape the future of mobile payments will be covered:
1. What are mobile wallets?
Mobile wallets are one of the fastest growing trends as far as the future of mobile payments is concerned. This is because mobile wallets offer consumers speed, convenience and security.
2. Why are mobile apps so popular
Mobile wallets are so popular in part because they are easy to use. Users just have to download the app on their mobile phone, add the payment information and they are ready to use their mobile wallet physically and online. Another advantage of the mobile technology is that it identifies you digitally so there is no need to enter your credit or debit card information online or give the physical card whenever you are shopping in store.
3. Digital authentication
Mobile wallets offer consumers convenience but the reason why more and more people trust this technology is a different one – namely, the digital security. Most apps for mobile payments require dual identification such as pin code and biometric identification for extra security.
4. Physical Payment Cards
Different apps for mobile payments as well as other digital payments (bitcoin and peer-to-peer transactions) reduce the need of physical credit and debit cards. Despite this, physical cards continue to be the dominant method for cashless payments. In the near future, however, things may look differently.
5. Mobile POS terminals
The processing of credit cards is also taken to another level by the development of technology. Mobile POS terminals are wireless devices which replicate the traditional cash registers and sale terminals. The flexibility of mobile POS terminals allow the merchants to accept payments no matter their location or that of their consumers. That is to say that the need of physical cash register is eliminated. This way, for example, merchants can accept payments even if they are located on the farmer’s market.
6. Social shopping
The truth is that people like to shop from their phones. And social media platforms like Facebook and Instagram are making it even easier. Now, for example, you can shop directly from Instagram without having to leave the app to search for a specific product. While looking at the last post of your favorite influencer, you can see the clothes or accessories he/she wears and buy them directly through the platform – with just a few clicks.