Why do shopkeepers and retailers seek money on your mobile phones than in your pockets? Do they receive additional charges over digital payments? Or do they get benefits over the digital acceptance of the payments?
These are some of the wonders why questions which arise as to a general person in his/her perspective while making payments. Inclination on the tramp of marketing brought the vigorous change in the payment system, by giving the facility to pay through the tiniest device in our pockets. Privilege over payments of huge amounts, just through a single click has made customers’ life much easier. The convenience and acceptability over different mediums have proven to be the most wonderful feature of digital payments through mobile phones.
Until the dawn of mobile technology, the options were pretty basic- 3C (Cash, Check, or Credit card payment). But, that is no longer the case. Payment by mobile devices, such as smartphone’s and even tablet computers, is sprouting.
In 2023, it is estimated that there will be 1.31 billion proximity mobile payment transaction users worldwide, up from 950 million users in 2019.
Mobile payments have been quickly evolving, with more recognizable brands stepping into the industry to advance technology and offer what consumers and businesses want in terms of apps and services that allow them to pay with their phones. major banking institutions, such as JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., and U.S. Bancorp, have created a joint venture called clearXchange that allows customers to transfer funds instantly to another bank account through their phones. Besides the experiments going on at Google, some of the latest trends in the mobile payment industry are offering greater convenience, security and a glimpse into the near future. Social media and messaging apps have also joined the fun. You’ll be able to make purchases directly from social media apps like Facebook and use WhatsApp as a commerce channel. Big data, beacons, and sensors are already helping merchants reach customers. With big data, merchants and retailers will be able to send targeted coupons, promotions, flash sales, and even the chance to complete a purchase in advance. https://www.youtube.com/watch?v=ZciY1No5-Rw
Because of this enormous growth and potential that mobile devices present, we can expect to see the mobile payments industry and startups in the space evolve to meet the growing demands of users. The stakes in this market are potentially huge with a key issue resting with who has control of critical information when customers make purchases. Many retailers have gotten to where they are by staying close to their customers, and they fear, without control of mobile payments, they may lose access to valuable information.