Pros and Cons of Mobile Payments

Author Chinavasion Marketing 25.6.2015. | 13:38

Mobile payments are ideal for small businesses because they don’t require a big system to work which makes them pretty convenient. This also adds value to consumer’s shopping experience. But with benefits of every new technology comes disadvantages too. Here’s a list of pros and cons of mobile payments.


1. Adds value to consumer’s shopping experience

Mobile payments are great for merchants as they can add value to consumer’s shopping experience by letting them choose their payment methods instead of making this choice for them. Stores located at remote locations don’t usually provide credit card payment service so when such stores start accepting credit card payments through an NFC enabled phone their sales are bound to increase.

2. Decreases wallet clutter

Mobile wallet not only helps make transactions but loyalty cards, coupons and gift cards can also be stored on it, which cuts the clutter of your wallet and the fear of losing them also goes away. So each time a consumer makes a purchase the information of every transaction is stored on their phone.

3. Track buying patterns of customers

Making payments through mobile phones will help merchants better understand and get an idea about the buying patterns of their customers. Not only will this help merchants keep account of payment information but they can track customer trends and inventory. For example a grocery store can use their consumers’ payment data to learn that people buy a lot of eggs on Wednesdays, which can help them make sure that they have enough eggs on hand on that particular day.

4. Check out process has gotten faster

People tend to go toward the things that provide them with the most convenience. Standing at long checkout lines after shopping is typically the worst part of their experience. It has been shown that making transactions through smart phones are usually quicker than paying using a credit card, this speeds up the check out process.


1. Security and privacy concerns

The biggest hold up in widespread adoption of mobile payments everywhere is perhaps due to the security concerns that people have. Their key concerns are:

A, Whether their personal bank account information will be safe from hackers or not, and B, If their phones get stolen would the thief be able to impersonate them at the checkout counters?

Although it’s clear that big telecommunication companies will work very hard to gain the confidence of their consumers when it comes to mobile payments there is no certainty that every company will be equally secure.

2. Cost of distribution

In order for mobile payments to go mainstream merchants need to get on board with this technology. The distribution cost of near field communication readers is relatively higher as opposed to the cost of other readers. Due to this merchants aren’t that willing to accept this new payment trend despite the aggressive promotion by companies.

3. Invoices are skipped

While making payments it’s important to read terms and conditions which becomes hard with mobile phones so details are usually missed which can be dangerous at times. It can also lead to a lot of errors that can easily slip by uncaught.


This guest article is written by Rida Maqbool,  a columnist and avid writer. If you would like to send us a guest post please see the Write for us page for further information and how to contact us.


Author Chinavasion Marketing 25.6.2015. | 13:38
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