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Why Is Mobile Payments Benefits for Your Organization?

Banking CIO Outlook | Thursday, August 04, 2022

Mobile payments lessen or eliminate the need for users to carry payment methods such as cash and credit cards, which makes them less likely to be lost or stolen.

Fremont, CA: Mobile banking via digital wallets was already becoming more common as customers got more acquainted with the technology and as more businesses began to provide terminals that take mobile payments from smartphones at the point of sale. COVID-19, of course, makes contactless payments much more appealing. Now, 67 percent of consumers desire mobile self-checkout solutions.

So, what are some of the benefits of mobile payments besides avoiding germs by having less interaction during the checkout process? Let’s see some of the advantages for both businesses and consumers.

Mobile payments are convenient.

Smartphones are held by more than 81 percent of Americans and are more accessible to many than wallets. Mobile payments are a logical extension of all the everyday chores that smartphone users expect, from checking the weather to updating their social network profiles. Adding payments to a currently used gadget makes the procedure easier and more convenient.

Mobile payments provide additional levels of protection.

Mobile payments lessen or eliminate the need for users to carry payment methods such as cash and credit cards, which makes them less likely to be lost or stolen. Additionally, digital wallets provide extra degrees of biometric verification, such as fingerprint scanning and facial recognition, assisting companies in avoiding fraudulent payments. Finally, mobile payments are usually tokenized during transactions. This implies that important account holder information is replaced with tokens that fraudsters cannot use if they intercept payment transactions, boosting security for businesses and customers.

Mobile payments allow for completely computerized financial transactions.

Consumer payments are an essential component of household budgeting. Digital wallets may be readily integrated into the software and mobile apps that help consumers keep track of what they spend, where they spend it, and how frequently they spend it. Moreover, electronic receipts may be produced to assist consumers in keeping better track of their spending, eliminating paper waste, and lower corporate costs.

Mobile payments are quick.

Counting cash or waiting for a chip card transaction takes time. Instead, a consumer uses mobile payments to present their mobile device and validate the transaction, often achieved by a short phone scan for facial recognition. This provides customers a faster, more user-friendly experience while assisting companies in expediting transactions.

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