Mobile Payment: a future without a wallet

3/22/2012 4:55:31 PM

Mobile Payment: a future without a wallet

Smartphone has replaced lots of things that we used to carry them with us, like watches, alarm clock, MP3, GPS gadget. And a future where smartphone can replace your wallet by providing a portable payment is not so far. We have just started first waves of gadgets use for portable payment, and if your company wants to catch up with this trend, maybe it’d be a good idea to start research whether this payment is suitable for your company.

How does it work?

There are lots of ways for you to provide the customer how to pay on the street. We will explain in detail these feature in order to help you choose which way is the best.

Portable E-commerce

One of the most popular ways is a link or a button to your website, allow customers to import their payment information through their phone. For example, the giant PayPal guy provides a code and a button that you can add it in your mobile website.

Avin Arumugam, an advance marketing management for mobile payment in PayPal stated: “MEC is a short term for Mobile Express Checkout, and it re-create a convenience of PayPal Express Checkout on mobile phone and application. For example, when a customer visits a commercial website, he sees the PayPal blue button… and they can log in to PayPal and pay through choosing PayPal options”.

In order to help customer easier, you can consider a famous online payment services so customers can be guaranteed about the security of the trade (which you don’t have to do it by yourself) and they don’t have to import their long and inconvenient credit information. For example, Arumugam stated that “Everybody knows that PayPal is a reliable name. We have 12 years experienced in internet payment. We are “the Payment” and we manage the risk and have the best ability to block the fraud – deal with online payment is what we meant to do”. In short, a trustworthy online payment provider will add more credibility for your trade.

Application. Another feature is to create a mobile application that customers can download to pay for you through their smartphone. For example, by integratingpayment in just one-click, everybody can find and buy available products on your website. For example, has just released Amazon App (for iOS, Android, BlackBerry and Windows 7) allows you to search, read other customers comments and browse other related products and buy it directly through your phone.

Another example is a Starbucks application (available for iOS, Android and BlackBerry), where you can re-cash your Starbucks credits through application. You can also check the balance of the credit and monitor My Starbucks Reward bonus.

Credit card on the road. One of the most interesting mobile payments is Square, which was originally a tiny credit card reader that you can plug in an audio phone jack (it supports Android or more, and like iPhone, iPad and iPod Touch run iOS 4.0 or more) and read those credit car’sstrokes. Credits can be processed by Square application on the phone.  In order to keep secrets, this application in accordance to VeriSign Trusted and PCI (Payment Card Industry), therefore you can make sure with the customer that their information is safe. Money can withdraw in bank account in your next day. Square collect 2.75% each time you swipe the card but unlike other credit card payment service, no monthly fee or signed contract.

Free-wiredstore. Upcoming mobile payments will be NFC and RFID. These two technologicalstores use the hardware that was installed in your mobile phone and will be recognized by a chip reader at a money counter or at the cash register. The payment is free-wired so we don’t need any physical interaction with the customer.

Both NFC and RFID use radio frequency waves for delivering information, but the NFC devices usually work in the small sphere – normally 4 inch or less.

Apple, RIM (the company after BlackBerry), Motorola, HP, Nokia and Sony Ericsson announce that they already have planned for releasing mobile phone with installed NFC soon. At this moment, NFC seems to be preferred than RFID because small range connections will block hackers from stealing your information.

When technology is used for available NFC stores, maybe customers will care more about accept this convenient payment method.

Use PayPal Mobile application for sending money through your mobile phone.

P2P transmission. When you need to pay for a person, for example, you want to share the bill or pay back the money for somebody but you don’t have any cash, there are options for payment between people and people. For example, two PayPal users can solve the debt easily by using PayPal Mobile application to transfer the money. All you need is open this application, choose tab Send, enter the money, and provide the email or the mobile phone numbers of the person you want to transfer this money. If he/she doesn’t have a phone, you can send a request to remind you.

Square allows you to scan and receive credits card by using Android or iOS smartphones

Why using mobile payment?

Payment using mobile phone is the future way. For example, in 2010, PayPal observed the 750 billion dollars amount of money from over 5 billion users. “Let’s compare this with 2008, where we saw 28 million dollars and 2009 was 140 million. You can see the ballistic. In 2011, we estimated that there will more than 2 billion mobile payment through PayPal Mobile”, Arumugam stated. IE Market Research Corporation guesses that the total value of simple mobile payment will rise about 1.13 trillion in 2014. Beside, this system is easy to be used. Instead of paying monthly service like you do that with the credit card, these mobile payment systems collect a stable fee for each trade. Overall, they will be no extra fee if you more or less trade. The mobile payment system will also process faster other traditional credit card system because you don’t need to print the bill, let the customer sign and find a place to store the bill.

  •  Tablet for offices and being on street
  •  Tablet for the road
  •  Microsoft with Skype, Acer India with new netbook and PNY introduced SDHC 133x
  •  Motorola Razr
  •  Samsung launched projector, smartphone, and 10.1'' note device
  •  HTC One series introduction
  •  Sony: From Vaio to Vita
  •  Sony Tablet S
  •  Ipad : Presentations with Keynote - Building Your Own Slide
  •  Ipad : Presentations with Keynote - Building a Simple Presentation
  •  Programming .NET Framework 3.5 : Using Data Synchronization Services (part 3) - Handling Concurrency Errors
  •  Programming .NET Framework 3.5 : Using Data Synchronization Services (part 2) - Completing the Service & Completing the Client
  •  Programming .NET Framework 3.5 : Using Data Synchronization Services (part 1)
  •  # BlackBerry Java Application Development : Networking - HTTP Basics
  •  Mobile Phone Game Programming : Analyzing 2D Sprite Animation
  •  Mobile Phone Game Programming : Understanding Animation
  •  Synchronizing Mobile Data - Using Merge Replication (part 2) - Programming for Merge Replication
  •  Synchronizing Mobile Data - Using Merge Replication (part 1) - Using Good Design to Avoid Synchronization Failures
  •  Windows Phone 7 Advanced Programming Model : Advanced Data Binding (part 4) - Data Bind to Anything
  •  Windows Phone 7 Advanced Programming Model : Advanced Data Binding (part 3) - Showing Progress & Lazy Load Images
    Top 10
    Nikon 1 J2 With Stylish Design And Dependable Image And Video Quality
    Canon Powershot D20 - Super-Durable Waterproof Camera
    Fujifilm Finepix F800EXR – Another Excellent EXR
    Sony NEX-6 – The Best Compact Camera
    Teufel Cubycon 2 – An Excellent All-In-One For Films
    Dell S2740L - A Beautifully Crafted 27-inch IPS Monitor
    Philips 55PFL6007T With Fantastic Picture Quality
    Philips Gioco 278G4 – An Excellent 27-inch Screen
    Sony VPL-HW50ES – Sony’s Best Home Cinema Projector
    Windows Vista : Installing and Running Applications - Launching Applications
    Most View
    TomTom’s Via 260 - Getting Lost No More
    Facebook: The church of a global village
    Dream Machine 2012 - The Future Is Now (Part 3)
    WCF Services : Data Contract - Equivalence
    15 Practical Tips For Building A Better PC (Part 2)
    Troubleshooting And Benchmarking A New PC (Part 1)
    Edge Of Glory (Part 3) - PhoneGap Build
    iCloud and Snow Leopard
    Exchange Server 2007 : Configure the Client Access Server - Enable and Configure Outlook Anywhere
    CM Storm – Quick Fire Rapid
    ASUS U32U - For The Budget Conscious
    Exchange Server 2010 : Deploying a Database Availability Group (part 3)
    iPhone 3D Programming : Blending and Augmented Reality - Shifting Texture Color with Per-Vertex Color
    Understanding and Using Windows Server 2008 R2 UNIX Integration Components (part 1)
    HP Global Influencer Summit 2012 (Part 1) - The HP Envy Spectre XT, The HP Envy Sleekbook
    Compact Camera Shootout (Part 3) : Canon IXUS125 HS, Fujifilm FinePix F660 EXR, Nikon Coolpix S8200, Panasonic Lumix DMC-SZ1, Samsung WB150F
    Using SQL Server 2005 Integration Services : Programming Integration Services (part 4) - Connecting the Source and Destination Adapters with a Path
    Plum Crazy Trooper – “‘70s-Era Muscle Cars”
    Sony's Multi-function Smart Wireless Headset
    Windows Vista : Deploying Applications - Planning Deployment