All You Need To Know About M-commerce Payment Systems.
Understanding Mobile Payment Options
Mobile money transfer mobile and mobile wallets refer to m-commerce payment systems, which is operated and performed using a mobile device, instead of using cash, debit cards, checks and credit cards. Cell phones are used to pay for many services. In India, 500 million people are expected to have mobile phones over the next few years. By 2017, mobile payments will account for $1 trillion worldwide.
Mobile payments are a single type of mobile business that has become an industry in itself.
Mobile payments now include:
- Mobile wallets also referred to as digital wallets
- Touchless mobile payments
- Closed mobile payments
- Money transfers
- Portable Sales area(POS)
- Carrier payments
1. Mobile wallets.
Mobile wallets make it easy for online shoppers to securely store their credit card details, shipping address, and more.
The advantage for consumers is that when paying for online purchases they don’t need to enter all this information again, which can be especially difficult on mobile phones.
Popular mobile wallets include:
- Apple Pay
- Google Pay
- Amazon Pay
- PayPal
- Samsung Pay
2. Touchless mobile payments.
Contactless mobile payments make use of select mobile wallets to facilitate payments made in-store.
Supported mobile wallets typically include:
- Apple Pay
- Google Pay
- Samsung Pay
Some banks introduce their own mobile wallet too.
When making a payment in a physical location, customers can place their phone close to a supported terminal to validate and transmit payment, instead of swiping their bank debit or credit card.
For Example:
- SBI Bank YONO App
- HDFC Bank: PayZap App
- ICICI Bank: Pocket App
3. Closed mobile payments.
Closed-loop mobile payments are exactly the same as mobile wallets but are linked to a single brand via a dedicated mobile app.
4. Money transfers.
transfers were previously limited to a banking application, but now there are more and more ways to transfer money from one person to another — mobile — without using a banking app
Early adopters of this include:
- PayPal
- Google-Pay
- PhonePeh
- Paytm
- Mobikwik
- FreeCharge
5. Operating point-of-sale (POS).
MPOS (mobile point-of-sale) is a dedicated smartphone, tablet or dedicated wireless device that performs the functions of a cash register or electronic point-of-sale terminal (POS terminal) wirelessly.
With connected payments and mobile wallets such as Google Pay and Apple Pay growing in popularity, mPOS systems are also better equipped to accommodate those customers who simply wish to tap or dip their phone to pay.
These could either be small card readers that attach to your mobile phone, or contactless card readers which would allow customers to pay for their purchases using certain mobile wallets.
Some of these solutions integrate with various e-commerce platforms, so if you have both an online and physical store your sales and inventory are automatically synced.
6. Carrier payments.
Used less frequently these days, carrier payments were perhaps the original form of mobile payments.
Carrier payments were once a popular method for paying for downloadable ringtones but is now mostly used for making charitable donations.
A user sends a message to a specific mobile number, and the value of the transaction is added to their next cellphone bill.
That’s all for today!
