Why Mobile Payments Are Becoming So Widely Used

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When it comes to selling goods, making payment easy is the name of the game. That’s why so many retailers are working directly with banks, financial institutions, and yes, even your phone manufacturer. That’s right—Apple, Google (through Android), and Samsung are all producing mobile payment systems that allow their users to make payments using their phone. While there are still valid security concerns about mobile payment systems, they are becoming more popular as phone users demand them. Retailers are ultimately beholden to their customers, and the customers want to be able to use their mobile devices in order to make payments at the coffee shop, at the book store, and when shopping for clothing.

Mobile Payment Systems
Mobile Payment Systems

Many retailers are getting a high risk merchant account from a credit card processor. Apple Pay, Android Pay, and Samsung Pay all make payments easier for customers, and that’s why merchants are investing so much into infrastructure that can fully utilize the new technology. Retailers are used to technology changes, and have already had to upgrade to new EMV card readers to uphold new security standards that banks and credit cards want to enforce in the United States. In order to process mobile payments, retailers will be moving towards NFC, or Near Field Communication technology in order to allow their customers to make mobile payments.

NFC technology is said to be significantly cheaper than EMV technology and hardware, which is one of the reasons why businesses might be more inclined to start asking their customers to pay by phone. Installing new EMV terminals is expensive, while NFC technology is easily installed without a major expense. The issue with NFC technology is that we aren’t yet sure of the vulnerabilities, and we need to be able to make sure that customers are safe when using the technology. Over time, researchers and security experts will find the medium where mobile payments can be safe for everyone. That time is probably coming up pretty soon, due to the high demand of mobile payment processing.