An Easy Guide to Payment Apps and How They Work
With mobile wallets and QR code payments on the rise worldwide, is it the right move for your business to incorporate credit card processors that support mobile payments? As POS system providers, Rocket POS understands the importance of fast and efficient transactions for business owners, as well as customers!In fact, there’s a vast amount of potential that mobile payment solutions can offer to large and small businesses alike.
Below, we explain the basic terminology of payment applications and how they work, including examples of some of the most well-used payment apps out there.
What is a payment app?
Payment apps are mobile software applications that allowcustomers tomake quick, contactless payments using their smartphones. Generally linked to bank accounts or credit cards, customers can pay for things digitally via direct payments from the app without the need of using a bank card, cash, or check.
What is a mobile wallet?
A mobile wallet refers to the app customers use to make their digital payments.
How do mobile payments work?
When used for in-store payments, mobile payments are enabled by the use of Near Field Communication (NFC) technology which allows two devices (such as a payment reader and a smartphone) to communicate wirelessly.Many payment apps use QR codes to communicate with retailer payment readers.
What are QR codes?
Quick Response codes, or more widely known as QR codes, are a type of NFC technology used for electronic payments. While previously seen as little more than a passing phase, QR codes arefast becoming the “dark horse” of the payment industry. It’s predicted by Juniper Research to increase in use exponentially from 1.5 billion in 2020 to over 2.2 billion by 2025 worldwide.
Retailers and tech companies such as Apple and Google Pay are paving the way forward by incorporating QR technology into their payment solutions.
What are some of the best payment apps available?
There is a vast range of mobile payment providers now available on Apple, Android, and more.
Apple Pay Pros: No app download needed. Works in iMessage. More secure as integrated 2FA.
Apple Pay Cons: Available for Apple devices only.
Apple Pay is simple and easy to use for everyone. iPhone users do not need to download any app; they only need to input their credit card information to their Apple account to make contactless in-store purchases via Apple Pay. This app also has the addition of Touch ID or Face ID for added security.
Google Pay Pros: Preloaded on many Android devices. Widespread acceptance.
Google Pay Cons: Different Google payment app needed for person-to-person payments.
Google Pay is the mobile payment app of choice for many Android device users, as it often comes preloaded on Android smartphones.
One of the main advantages of Google Pay is that it is widely accepted by most retail stores. It also claims to be more secure than conventional credit card payments as user details are protected by multi-layer security encryptions.Google Pay supports a range of well-known credit card companies such as Discover, Chase, Citi, and American Express. Finally, the payment app offers other benefits, e.g. it can be connected to PayPal accounts.
Alipay and WeChat Pay
With mobile QR code payments being used as an everyday part of Chinese consumer culture, 98% of Chinese smartphone consumers use mobile payments. Alipay and WeChat are now considered to be lifestyle super apps, integrated into the daily lives of Chinese consumers worldwide and allowing users to pay for a range of services. Nearly 60% of businesses outside of China saw a 60% growth in revenue and foot traffic alone when adopting Alipay.
From contactless retailer payments to everything from booking a hotel, getting a taxi, buying movie tickets, paying utility bills, and more, Alipay and WeChat are widely versatile and aresuper convenient. While not all stores accept these payments, app users can locate businesses that accept Alipay and WeChat transactions via the apps.
Want to set up mobile payments for your business?
If you’re looking to set up mobile payments for your businesses, doing so is fairly simple! The first step to take will be choosing a credit card processor that supports mobile transactions. AsPOS system providers, Rocket POS can easily help you with this! Get in touch with us today and we’ll gladly help set you up with a WIFI EFTPOS terminal or mobile EFTPOS device that supports mobile payments with ease.