What to Expect From Mobile Payments

Gone are the days when your cell phone was a merely a device used to make or receive phone calls. Now, times have changed. In this era of fierce competition and fast-commerce, consumer-driven business models have resulted in this new break-through technology that allows you to make your payments via… none other than your cell phones!

Simply, tap your smart phone near to the NFC reader at the payment counter, and pay for your utilities, food, fuel, and you name it – it’s there! If you are still unaware of the concept, mobile wallets allow you to make payments through your mobile phones, easily, conveniently and most securely.

Expect the Unexpected: Mobile Payments.
For novices, Mobile Payments are payments made using the NFC Chip in your smart phone, by simply tapping the NFC reader at the payment counter. It’s as easy as it sounds, tada! You have just made your first purchase using Mobile Wallets.

People are unaware of what this technology has to offer, and hence, let’s see in detail what the age of Mobile Payments has in store for us:

1. Safer Choice for Making Payments
Making transactions through mobile phones are safer than your traditional Credit Cards. This is because firstly all data is transferred through encryption so the merchants cannot steal your data. Second, it uses pin code protection so only you have the key or password to your money.

2. Better Economic Cost for Using NFC Payment Method
The economic cost of purchasing through mobile wallet is lower than the credit card. This is because NFC payments may directly link with your current back account as opposed to your credit card. Hence no Interest Rates, No Hidden Costs; perhaps all you may pay on-top is a small monthly usage fee for ALL the purchases you make in a month (as opposed to percentage charged per transaction).

This certainly opens up the possibilities to everything, everywhere; from restaurants, banks, bus station, parking areas, shopping malls, hair-cuts, coffee shops, and you name it, it’ll be there!

3. Better Theft Protection
Keep in mind that the risk of physical theft is always there; be it your leather wallet or your cell phone. In case of theft, a credit card is easier to use at payment counters (as it requires a signature that is not synced real-time with the bank database). However, your NFC device is much safer! In a similar scenario, your NFC device would not allow anyone to make purchase without a PIN code that is still safe with you.

Hence, the chip in your phone prevents accidental or intentional tampering and will deny unauthorized access.

4. Spending Only For What You Require
This is where NFC gets real powerful!

It not only transfers your amount to vendors and keeps your money safe but the applications using NFC allow you to find the best deals for your shopping. Moreover, if you allow your device to track your spending, your device maintains a complete ledger account (like an audit sheet) of your daily/ monthly spending, your spending habits and purchase patterns.

Moreover, NFC devices use RFID tags that allow you to tap on names of restaurants to check their menus. Similarly, if you are within a shopping mall in USA, you have the choice to tap your cell phone at the mall to check for the latest deals being offered by various merchants within the mall (tip: all leading malls within US have started adopting this; check with the mall manager or staff). Hence, using NFC, you have the information right in your hands.

5. Don’t Carry Wallets
Not really unless you want to have one signed by a celebrity. NFC uses RFID tags that not only allow you to make electronic payments but also stores information about saving coupons, gifts and loyalty card and applies them whenever payments are made. A journalist by the name Christina Bonnington was able to live without her wallet for one month.

6. It Helps Your Business
What’s better than knowing the entire shopping patterns and behavior of your customers? Imagine the possibilities, how it can help you improve your business contacts and result in better customer retention. With NFC you can just do that! While we will never run out of business cards, NFC chips have the ability to store information of your contacts so you can network fearlessly.

7. Welcome to The Future! Be Keyless!
Who among us has not lost keys to our office or house? NFC-enabled phones allow us to unlock our doors. With NFC, users simply wave their cellphone, instead of an access badge, at a reader, as a credential for access to labs, office, home or other secured areas.