We are living in an era where your smartphone is enough to buy anything from anywhere in this world. There’s no need to carry cash or credit/debit card or even remember your Internet banking credentials. Approving a transaction request is just a matter of single tap on your phone. Today, we will have a look at the working of mobile payment systems and how they are making payment easier, faster and safer.
Do Mobile Payment Platforms are Trustable?
There will no sense in reading and knowing about mobile payments if you keep yourself away from the system. Let’s first see some interesting survey reports about mobile payment or digital payment systems.
According to the National Payment Corporation of India (NPCI) in a report by Yourstory, the total UPI transactions climb to 800M in March 2019. Another report said, one in ten people are now using mobile payment methods for every purchase.
Yes, it’s true that people are still concerned about the safety of mobile payment technologies. Out of 25% of people who uses mobile payment apps, only 12% trust digital payment providers to safeguard their information. However, Ironically, mobile payments are secure than any other virtual payment method available out there.
If you are among those people who are still maintaining a distance from these mobile apps, it’s time to brush up your basics. When you move your first step forward, you’ll realise using mobile apps for payments is only safe but they’re also the wave of the future.
How Mobile Payment Apps Actually Work?
It doesn’t matter whether you’re using Google Pay, Apple Pay, Samsung Pay, or third-party mobile payment apps from brands like PayPal, Chase, etc. All of these apps follow strong security guidelines.
Some apps come with an integrated wallet while others allow you to pay directly by your card or bank account. Most of the digital wallet apps allow you to store payment information on your phone so that you can easily retrieve and use whenever you wanted.
Now, let’s try to understand the underlying process on which these apps works and help you perform the transaction in the most secure way.
- All the sensitive information present on the smartphone is encrypted by the smartphone, not by the bank or issuer.
- The required information is then relayed from the device to the mobile app provider via NFC technology.
- The mobile wallet or app provider such as Google Pay, Apple Pay, Samsung, or any other decrypts the information, identify your action like which account you’re trying to access and then verifies your identity.
- When the app is satisfied that you’re authorized to perform the transaction, the mobile app provider forwards the payment information to the payment processor.
- The payment processor then communicates with your bank and asks them to send the requested funds.
- Once the funds are received from the bank, the payment processor sends them to the store’s bank account and informs the POS machine that transaction is complete.
Digital payments using your smartphone takes place in so many layers that it becomes impossible to invade the security. And this is not something which applies to big retail stores only. The above process is applicable for every payment regardless of the medium (online/offline) or location.
How Mobile Apps are Making Payment Easier, Faster and Safer?
People may forget to bring their wallet or other essentials sometimes but never the smartphone. And this makes the mobile payment more convenient than ever. It makes you free from the worries of carrying cash or cards and pay the merchant just by using your phone.
Mobile apps are not only easier and faster than swiping and inserting your card but also eliminates the risks associated with carrying cash.
Mobile apps have improved a lot with time. They are now using technologies like Near-Field Communication (NFC) and let you pay for the products or services just by tapping or waving your phone at the POS terminal.
Payment apps use strong encryption technologies and ensure your confidential details are never get compromised. Your real card number or account number is never stored on your device or retailer, instead, the system masks it by a random token number which will be of no use later. This makes mobile payments hassle-free and secure.
Moreover, you can add PIN, Password or Fingerprint to the apps as an additional layer of security.
3. Faster Payment
Mobile apps have made payment faster than ever. It doesn’t require you to enter the same card details and providing a one-time password every time.
You can simply approve the transaction by entering tapping on your screen or waving your smartphone in front of an NFC enabled POS terminal. The whole process is contactless and yet secure because your card number is never revealed. As this doesn’t involve inserting or swiping your physical card, the payment process is a lot faster than others.
4. Discounts and Deals
Mobile payments often come with lucrative discounts, deals and offers. Merchants are now promoting their preferred payment options and also encourage customers to use mobile apps for payment whenever possible. Hence, mobile apps are not only making mobile payment easier, safer and faster but also help customers save money while shopping.
The first card you add to these app becomes your default first payment option. But no issues, you will have options to change your default card at any time. Now, as your default card is always available, using a mobile payment app will make you free from a lot of worries such as searching of cash, or even worse, running out of cash when you’re about to make a payment.
You can also add your credit card in the app, which will lead to only one credit card bill every month and ultimately make it easier to manage your finances. Overall, mobile apps are making seamless payments possible. If you are yet to try payments apps, there’s nothing to worry about. Every popular app takes care of customers’ security very well and provides a swift support system. In case of any issue, your problem will be solved in no time.
Varsha Solanki is a Digital Marketing Strategist at Space-O Technologies, a mobile app development company. She has 3 years of experience in the Information Technology industry. She spends her time reading about new trends in Digital Marketing and the latest technologies.