If we look at the history of trade and commerce, it dates to the ancient era of humankind. It started as a Barter System wherein initially, human beings exchanged grains, food, services, and livestock. Slowly the humans graduated to precious metals and started using them as a medium of commerce. Then, the concept of money came into existence. The human world kept on progressing and evolving with time. Subsequently, the introduction of credit cards, debit cards, and forex came into light. When we look at the present world, the internet and online space are the buzzwords. These terms have eventually given birth to the concept of electronic payments such as online banking transactions, e-wallets, mobile payments and many more.
Today, multiple firms are active in this domain throughout the globe. Their robust infrastructure provides secure digital payment solutions. One of the examples is Safe2Pay. It is an Australian company that is well-known for its e-payment solutions. Convenience and Transactional Efficiency are the two underlying reasons that led to the evolution of payments systems. In the contemporary era, the most talked about payment method is mobile payment. It is spreading not only in Australia but across the globe. Let us dive into the world of mobile payments.
What is Mobile Payment?
The genesis of mobile phones has metamorphosed the human society. Mobile phones have become an intrinsic part of our day to day life. It is a multifunctional device that acts as a source of entertainment, storage, and communication. It has also made our everyday life easy with the help of multiple inbuilt applications such as the calculator, calendar, clock, emails, weather forecasts, digital wallets, and much more. One of the most important features of mobile phones that we will be talking about is Mobile Payments. It refers to the payment functionality of this handy device. Instead of using credit cards, debit cards, or cash, we can use the inbuilt application of mobile phones to make purchases. Moreover, these financial transactions are regulated. Now, let us understand what the different types of mobile payment options are.
Types of Mobile Payments
There are many ways in which mobile phones or smartphones are used to send and receive payments. The common ones are listed below.
1. Mobile Wallets
Mobile Wallet Payment is one of the most common and talked about payment methods in the realm of smartphones. Most of the e-payment service provider firms have created mobile-based applications called Mobile Wallets. You can install the software on your phone, establish your login credentials, link your credit card, debit card, or bank details and start making payments for an online or in-store purchase. You can also use these wallets to store funds, transfer, and receive amounts from your peers. So, even if you have forgotten your credit or debit card, you do not need to worry. Apple Pay, Google Pay, and PayPal are some of the examples.
2. Mobile-Based Bank Transactions
These days, most of the banks have set up their mobile applications. If you want to transfer money or check the details of your bank account, you do not need a personal computer, laptop, or a tablet. You can use your smartphones to carry out these transactions.
3. Acoustic-Based Payments
New technology in the market uses the audio feature of cell phones to carry out money transfers. It is an offline payment method. The phone picks up the sound signature and initiates the digital payment process. If you are making an in-store purchase, the merchant has a dedicated reader.
4. Contactless Mobile Payments
This kind of payment uses ‘Near Field Communication (NFC)’ technology. According to this technology, two portable electronic devices can communicate with each other if they come near. Contactless payments through mobile phones are also becoming widespread mostly in the transportation industry. The consumer’s phone contains an NFC enabled smartcard. When the consumer brings the phone close to the reader, the smartcard charges the payment to the bank account or digital wallet linked to the NFC smartcard. Visa Mobile Payments NFC technology. It is quite popular in Australia.
5. Smartphones as Card Terminals
There are dedicated mobile applications that can help your phone in processing card payments. Most of the traders use this method. If you are a merchant, you do not need an extra card reader to accept money from your customers. Safe2Pay is a known vendor in Australia that provides this solution through their app PocketPOS.
The technology of mobile payments is gaining worldwide popularity at a breakneck pace. The growth of Mobile Payments in Australia is also commendable. Let us discuss the boom of this mode of payment in Australia.
The Boom of Mobile Payments in Australia
According to statistical data, today approximately more than 60 percent of the global population has access to cell phone and internet. It means that the humankind has kept its door wide open for newer technologies in this field. Mobile phone payments are growing day by day in all parts of the world and, Australia is not an exception. Moreover, it is expected to further expand in the coming years. Experts are speculating the below significant reasons for its boom.
1. Customers are demanding a higher level of convenience, flexibility, and personalization. Payments through mobiles are more convenient and hassle-free as we do not need to carry credit cards, debit cards, or cash and our phone that we take everywhere fulfils the purpose.
2. The concept of globalization is attaining heights, and it is also creating new challenges for both the merchant and the consumers. Thus, people cannot just rely on banks for all their payment needs, and they are forced to explore new options.
3. People are considering electronic payment media as robust and safe. The biometric and transaction authorizing features of the mobile phone is acting as a cherry on the cake.
4. Moreover, the internet is almost everywhere today. It is very convenient for anybody staying in any part of the world to know about the new technology and its benefits. Everybody wants to accelerate their pace in the race of technological advancement. Australia is also not ready to fall behind, and it is embracing the development.
The technology of Mobile Payments is growing in every part of the world including Australia, and it is expected to rise further. Today, most of the traders throughout the globe Take Mobile Payments. It is convenient, fast, flexible and secure. It is also cheap as compared to card services. It is very advantageous for customers and merchants. Both Paying with Mobile Phone and Paying to a Mobile phone are possible today.