Advances in mobile payment technology are starting to pay off As shoppers increasingly pay for goods and services with th...
Advances in mobile payment technology are starting to pay off
phones, the end of traditional plastic debit and credit cards is nigh
Everyone knows that the smartphone
has changed the way we live, from the way we communicate, tell the time and
organise our social lives, to how we browse the internet. But a lesser-explored
benefit is how the humble mobile has the ability to replace our debit card,
kill cash and alter how we think about making essential financial transactions.
has changed the way we live, from the way we communicate, tell the time and
organise our social lives, to how we browse the internet. But a lesser-explored
benefit is how the humble mobile has the ability to replace our debit card,
kill cash and alter how we think about making essential financial transactions.
While online banking has been around
for years, the notion of making direct payments through a phone is relatively
recent. These new systems allow your phone to act as a contactless debit card
by way of near-field communication (NFC) technology, which uses the same chips
embedded in bank cards coupled with mobile payment services.
for years, the notion of making direct payments through a phone is relatively
recent. These new systems allow your phone to act as a contactless debit card
by way of near-field communication (NFC) technology, which uses the same chips
embedded in bank cards coupled with mobile payment services.
Although you're probably most
familiar with Apple Pay, which launched in the UK in July 2015, Samsung and
Google have their own tap-and-go platforms – Samsung Pay and Android Pay
respectively – slated for release on these shores later this year. The argument
for using these services is the level of security they offer, alongside speed
and convenience – namely, no more entering PIN numbers.
familiar with Apple Pay, which launched in the UK in July 2015, Samsung and
Google have their own tap-and-go platforms – Samsung Pay and Android Pay
respectively – slated for release on these shores later this year. The argument
for using these services is the level of security they offer, alongside speed
and convenience – namely, no more entering PIN numbers.
Apple Pay, for example, allows you
to pay for items in a shop by holding your handset up to a payment terminal, as
you would a contactless card. To make it work, all you have to do is register
your debit or credit card to your iPhone and verify your identity by using the
fingerprint scanner embedded in its home button each time you want to make a
transaction. The advantages, Apple argues, include saving time – you don’t have
to pull out your wallet, then the correct card, then tap in the right PIN – as
well as increased security, thanks to the unique codes generated for each
payment, thereby keeping your transactions secure.
to pay for items in a shop by holding your handset up to a payment terminal, as
you would a contactless card. To make it work, all you have to do is register
your debit or credit card to your iPhone and verify your identity by using the
fingerprint scanner embedded in its home button each time you want to make a
transaction. The advantages, Apple argues, include saving time – you don’t have
to pull out your wallet, then the correct card, then tap in the right PIN – as
well as increased security, thanks to the unique codes generated for each
payment, thereby keeping your transactions secure.
Another advantage of using mobile
payment systems is that they are not restricted by the £30 limit for
contactless transactions in the UK, meaning that as merchants eventually update
the software at their points of sale, we could find ourselves using such
platforms to buy plane tickets or cars by simply waving our phones. One thing
to think about is cost. Currently, if you were to use Apple Pay in the US you
would be charged usual overseas banking fees, but this could change. If the
technology companies develop strong enough relationships with the banks, they
may choose to waive the fees incurred from using international ATMs. You can
already use Uber all over the world, and the app converts the currency for you.
Banking may not be far behind.
payment systems is that they are not restricted by the £30 limit for
contactless transactions in the UK, meaning that as merchants eventually update
the software at their points of sale, we could find ourselves using such
platforms to buy plane tickets or cars by simply waving our phones. One thing
to think about is cost. Currently, if you were to use Apple Pay in the US you
would be charged usual overseas banking fees, but this could change. If the
technology companies develop strong enough relationships with the banks, they
may choose to waive the fees incurred from using international ATMs. You can
already use Uber all over the world, and the app converts the currency for you.
Banking may not be far behind.
The death of cash has been predicted
for decades, but the demise of the debit card could be far sooner than we
previously thought possible. The mobile revolution has taken gambles which are,
thankfully, already paying off.
for decades, but the demise of the debit card could be far sooner than we
previously thought possible. The mobile revolution has taken gambles which are,
thankfully, already paying off.
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