With more consumers using their smartphones to buy things like gas, groceries, and clothing there is a strong chance that within a few years mobile payments will become the norm. Just like regular credit cards consumers will insert their payment information into their mobile devices to make purchasing a mobile item as easy as possible. With the use of applications on smartphones and other smart phones it will be easy to pay for the items you buy with your phone. Mobile payments will also work with vending machines and other types of Point of Sale systems.
Many consumers have security concerns about traditional credit card payment systems and they don’t want to put their personal information anywhere. However, with mobile payment systems it will be easy for the consumer to keep their information secure from those that are not supposed to be paying them. In order to use some of these systems, the consumer will need to download the software onto their smartphone or smartphone. When the money is placed into your account the payment is sent directly to the recipient.
Not everyone has security concerns but most fans would prefer that their payments were secure. With mobile devices becoming more popular it makes sense that consumers want their purchases to be safe. Mobile payments might be a huge trend, but they aren’t going to happen overnight. It will take time for these new systems to catch on and become commonplace in our relationships with our purchases.
There are already some companies offering mobile payments in the United States. Some retailers such as Wal-mart, K-mart, and Chase offer contactless payment terminals in select locations. Other retailers that are looking to embrace the technology include clothing retailer, H&M, and restaurant chains like McDonald’s, Chipotle, and In-n-out. It is possible that more stores will adopt the contactless technology in the near future. Right now there are only three markets where contactless payments are implemented currently.
The first market to adopt mobile contactless payments is the United States. Major retailers like Wal-mart, Target, and K-mart have added the feature to their credit card machines. The biggest influence in terms of adoption has come from retailers within the U.S., as consumers here are also looking for ways to make their purchases more convenient.
The second major market is in Europe. Many financial institutions like British Petroleum, Credit Suisse, and UBS are testing mobile payments in order to reduce the cost of doing business. The cost savings will come from the reduced amount of time the customer spends standing in line at a bank or ATM. The goal is to improve customer experience and reduce costs.
The third major driver of the mobile payments market is teens. The biggest reason is probably because they can’t get their credit cards, which usually are for major shopping chains, unless they have good credit. However, even if they do, teens may not be satisfied with spending limits or purchasing options. For this reason, they often turn to an online store where they can shop with little or no effort. This is the perfect way for teens to gain important knowledge without using credit.
The fourth market that’s taking advantage of the new technology is parents. With kids spending more time on the internet than in school, it’s important for parents to know how to protect their teens from creating dangerous habits. Studies show that the average parent searches for and finds about two-thirds of all the topics relating to the dangers of giving their child easy access to their credit card information. By allowing teens to use cell phones as a mode of payment, parents can monitor their own spending, which could deter them from wasting too much money on non-essential items.