The fear of becoming a victim of mobile payment fraud restrains many shoppers from purchasing from their mobiles. Admittedly, there have been occurrences of data breaches at retailers. Yet, even if mobile payment is not to be relied upon blindly as any other mode of payment, it remains one of the most secure and convenient modes of payment, according to experts in this field. It furthermore offers attractive benefits to users.
Security concerns are unnecessarily amplified
Most of the security concerns about mobile payment are exaggerated. Jason Chaikin, the president of Vkansee, a biometrics security company, explains that mobile payments require a unique, one-time code number- also known as a transaction token- for every transaction being made. The system used differs largely from old magnetic strip cards that store sensitive user data on the strip itself.
In the case of contactless payment, no such data is stored and even if a thief manages to steal the limited information present, he will not be able to use it, because, as mentioned previously, every transaction necessitates a unique code. Even the card number itself is not shared with the retailer during a transaction.
Mobile payments offer unrivaled convenience
Apart from security features, mobile payments are to be considered for their unparalleled convenience. Being able to make a purchase rapidly with the ease of one’s mobile phone is carving a new trend in the shopping attitude, be it for customers or retailers. A simple tap on the device sets the transaction going. Consequently, the need to carry overstuffed wallets does not arise. Merchants, on the other hand, are more than happy to be able to monitor transactions more easily.
On a parallel note, banks have been urging clients to opt for mobile payments as well in view of reducing operational costs. Shoppers who fear that their credit card information can be in the hands of a fraudster if they lose their mobile phones or if their devices are stolen should rest reassured that such is not the case. The credit card information remains secure.
Mobile payments save time
Time is precious, and even more when you are an impatient customer in a hurry. Even if EMV chip cards are equally considered safe, mobile payment definitely has the upper hand regarding rapidity. Unlike EMV terminals that are rather slow to process transactions, mobile payment is done efficiently at a simple click or tap. A shopping experience should not be a painful and frustrating one and retailers do understand that if this is the case, they risk losing clients and consequently, witness a decrease in sales. The speed of transaction offered by mobile payment is hence systematically improved as well.
Mobile payments facilitate online shopping
Browsing the web through mobile phones has exceeded traditional browsing from desktop computers. With innovating apps and web capabilities dedicated to mobile phones, consumers are no doubt likely to purchase more by using their mobiles. One great example is the one-click checkout of Amazon that reduces the steps between the decision to purchase something and the transaction itself.
Certain websites like Airbnb accept ApplePay and Android Pay. Customers no longer have to provide card information every time and shopping online definitely becomes more fluid and easy. Retailers are equally taking advantage of this aspect by enhancing customer’s experience on mobile for shopping to avoid the latter from getting frustrated with non-optimized online purchasing experiences. The touch screen technology, fast checkouts and the fact that mobile phones have smaller screens are taken into consideration to offer fluid and enjoyable shopping experiences.
Users are pampered with loyalty programs and rewards
Service providers have done the extra mile to urge clients to embrace mobile payment. They offer loyalty programs and rewards to members. Just like traditional credit cards, mobile payments allow users to earn usual rewards such as travel points or even cash back. Samsung Pay, for example, has a dedicated loyalty program called Samsung Rewards. Points can be redeemed for gift cards or fitness trackers.
Most popular mobile payment apps leading the sector
Android Pay, Apple Pay, and Samsung Pay have become widely used apps for contactless transactions and are accepted in millions of stores around the planet, be it from grocery stores to big shops. The customer simply needs to add credit, debit, and loyalty or gift cards to start shopping.
These secure and easy digital wallets use tokenization to safeguard customer’s data. In other words, the information is replaced by a token which is non-sensitive and has absolutely no exploitable value. The tokens are generally represented as unique identification symbols.
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