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Top 6 things you need to know about mobile payments

Yoav Elgrichi, CEO, YuuPay Secure Pte Ltd | Nov. 3, 2014
Mobile payment is about to reach its tipping point of rapid growth, and merchants running trading platforms and e-commerce shops need to allow such a service to flourish.

Have you ever purchased something using your mobile phone or tablet? If not, you will surely do so in the near future. Mobile payment is about to reach its tipping point of rapid growth, just like what mobile internet usage had a little while back. For merchants who run trading platforms and e-commerce shops, allowing customers to pay from the mobile is no longer a "nice to have" but has now become an essential part of the business.

Whether you run a Forex Trading Platform or an e-commerce shop, it is very clear that your customers expect to have a reasonable and pleasant user experience on their mobile platforms (smartphones, tablets etc). However, today — more than ever,  customers also expect to maximise its use and be able to complete payment transactions via their mobile devices; and this is where Mobile payment kicks in.

We gathered the top things you need to know about Mobile payment. You might as well consider this as your "Mobile Payment for Dummies" guide.

1. 50 Shades of Payment
Confused about the many different flavours of mobile payments?
Mobile payment is indeed a broad term comprising wide range of services that can be summarised in five groups namely:

  • Mobile Web and In-app Payment:The consumer uses web payment pages displayed on the mobile or payment pages that are part of the application to make a payment. The use of a credit/debit card or a pre-registration at an online payment solution requires integration to payment gateway just like in a desktop environment. This is the common practice to pay for products and services.
  • Mobile Wallet:It is exactly what its words suggest - it is a way to store personal information, such as payment card details (channelling your good old leather wallet) and the ability to pay for goods and services through your smartphone. It is another form of cashless payment, like credit cards and cheques, except that that it is all performed through a smartphone. Mobile wallet is also often referred to as the usage of NFC technology such as in Google Wallet.
  • Mobile As Point Of Sale: This is employed with a use of a card reader and an application that is plugged into a phone which instantly turns the mobile device into a cash register. Square is a good example for this service.
  • Direct Mobile Carrier Payment: Utilising mobile carrier billing to perform payments. This is mainly used for buying digital content such as games, ringtones and other content services.
  • Closed Loop Mobile Payment: This is where merchants build and maintain their own mobile wallets. Starbucks, for example, is at the forefront of this trend. Their mobile payment system allows their customers to pay via the Starbucks app on their mobile phones. No cash needed and data says 10% of US in-store purchasers areactually using the app.

 

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