Published on September 23rd, 2015 | by Guest0
How mobile payment is going to beat credit card payment
Payments going more and more digital, merchants like bankers, retailers and card offering companies are going bonkers to get a hold on their market. Market trend and survey has stated that by the end of 2017 mobile payments will be the only thing in and will bring revenue of $720 billion a year as compared to last year which is estimated as $238 billion. PayPal, MasterCard, American express, Visa and Boloro has all developed platforms for mobile payments with PayPal being on the top. Apple Shadow is also emerging, it is being stated that it is jumping into mobile payments by utilizing its devices and the credit card data for more than a half billion customers to handle how they are paying online.
No doubt, plastic cards will have their presence in the upcoming future and companies are still investing on the preposition on their plastic cards. But they have to become more innovative and develop ways for paying of the goods that do not rely on their plastic cards. Consumers want their lives to become more simple, they intend to make their payments on one click and as it is known that smart phones act as a remote control and meet the so called ‘being simple’ demand of the consumer, controlling bank payments via smart phones is the next step to ease our lives. One has to just use a platform like (PayPal or Google) free account and an NFC terminal along with the 4 digit PIN-Code and done! Banking is complete with just one click.
Consumers want their smart phones to make their lives simple and efficient as they demand more immediacy and convenience in their day to day routine. This can be explained with an example, increasingly airline passengers can present an e-boarding pass before boarding the plane, many airlines are moving toward electronic payments. Using plastic cards for payments online has become a little hectic, requiring an awkward process of entering a 16-digit number, address for proof and start and expiry date of the card, whereas using mobile payment this process has depleted and the payment is one click away.
One survey has also stated that consumers are willing to pay via phone if they are instantly offered price discounts, instant coupons by retailers, reward points and preferable after sale services even some applications like, Cardstar and KeyRing has allowed users to store their loyalty card information on their mobile phones. Transitions towards smartcard is just an interim step, banks should have their sight set on the real revolution already underway, mobile payments. So for banks it is clear that digital payments are taking over and bank will be unable to charge the transaction costs they get for the usage of smartcards. But they face a bigger threat of losing their valuable customers, if they got muscled out to the sidelines in the payment business.
This article was written by Syed Irfan. He is a serial entrepreneur, a columnist and a certified inbound marketer. He Curates Content for Boloro.