Mobile banking is an act of making financial transactions like deposits, withdrawals, transfers, and payments through a mobile application service offered by financial institutions.
In this digital age, Mobile banking solutions are a key to the development of banks as it has increased the convenience and speed with which banking transactions take place. It has become a fundamental part of the banking system as they have eliminated the need to visit the physical bank. There are now mobile-only banks, which provide the vast majority of the services of a traditional financial institution without any existence of a physical branch. Mobile banking needs internet or data connection to the mobile device.
Mobile wallets enable users to store their personal financial information like debit, credit, prepaid, gift, loyalty, vouchers and more in an organized form on their smartphone. Mobile wallets allow consumers to use their smartphone to pay for purchases in a store Instead of physical cash or cards or consumers can use the “virtual cards” on their phone to make point-of-sale purchases.
With the increase in online payments, Cybercrime has also increased. When in doubt about accounts being compromised the user should not hesitate in taking action. Changing password regularly is a necessary precaution. A regular login to online banking accounts to check for any money transfers or withdrawals will help identify any suspicious activity which was not authorized.
There are a few latest payment technologies like
Near-field communication (NFC) payments
The Near-field communication (NFC) phones communicate with NFC-enabled card machines using close-proximity radio frequency identification.
Sound waves-based payments
Sound wave-based (or sound signal-based) mobile payments is a new, cutting-edge solution that works for most mobile phones. Transactions are processed not through the internet but through unique sound waves containing encrypted data about the payment. Sound waves from a terminal to the customer’s mobile phone convert that data into analog signals that finalize the transaction. This is an affordable solution especially in countries where people can’t afford the latest smartphones.