The way people make payments is changing faster than any area of financial services, impacted by the changes in digital technology, competitive forces and consumer demands. Understanding the trends in payments is important for any bank or credit union wanting to serve the complete financial needs of consumers. The modern payment processing ecosystem is a complex network of consumers, merchants, banks, and payment processors. The past decade has seen a monumental shift from physical payments to digital. Payment gateways as of today, facilitate card payments (both card present and card not present transactions) from buyers to merchants. The payment gateway server which used to be on premise equipment has already moved to the cloud, bringing down the time to set-up a brand-new service without compromising security. Because mobile payment technology is evolving so rapidly it can be difficult to keep up with the latest trends. Here, we’ll cover some of the innovations that are shaping the future of how consumers make payments and how mobile payment gateways enable those transactions.
Mobile Point of Sale
Payment preference isn’t the only thing going mobile. Payment processing is having its mobile moment too. Mobile point of sale (MPOS) units are dedicated wireless devices that simulate conventional cash registers and sale terminals clover station and revel POS system is one the prime example of this. MPOS units offer an easy, wire free, space saving way for merchants to accept payment. The flexibility of MPOS allows merchants to conclude transactions wherever customers are. There is no need for a centralized checkout location. Mobile point of sale devices allows merchants the freedom to conduct business virtually anywhere. Some of the many places merchants can use MPOS to facilitate business include:
- Coffee carts
- Food trucks
- Trade shows
- Farmer’s markets
- Craft fairs
The flexibility of mobile payment and MPOS is creating a wireless economy.
Mobile wallets are one of the fastest growing trends concerning the future of mobile payment technology. That’s because mobile wallets enable an individual to pay as well as receive payment using a mobile device. Typically, a mobile wallet is delivered through several payment processing models. This includes, but not limited to:
- Mobile-based billing
- SMS-based transactions
- Mobile web payment
- Near-field communications (NFC)
Mobile wallets offer convenience for consumers, but convenience isn’t everything. It’s the security features that will motivate consumers to continue to adopt mobile wallets in the future. Many mobile wallets offer or even require, dual authentication for use. Many smartphones have biometric authentication to ensure that only authorized user of an app can make purchases from a smartphone or any other smart device.
The future of mobile payment technology is dominated by mobile point of sale devices and mobile wallets. We already see the decline in the transactions using physical payment cards. However, the distant future of mobile payment includes automated payment capabilities. While there is still much development to be done, the direction is clear. Mobile capabilities represent the future of payment, payment processing, and payment gateways.