Mobile payments are any transaction that is made with a mobile device, such as mobile wallets and NFC payments using an aeps portal.
Mobile payment technology is essential for brick-and-mortar businesses.
Businesses that integrate mobile payments using aeps portal into their payment infrastructure can gain a competitive edge, online and offline.
This guide will cover everything you need about mobile payments using aeps portal.
We will briefly review some key terms before we get into the details of mobile payments.
Who was the first to use mobile payments?
Charles Walton, an electrical engineer, received the first patent in 1983 for an RFID device (radio frequency ID).
This technology is the basis of most mobile payments using aeps portal.
Coca-Cola introduced mobile payment in 1997 through a small number of vending machines.
Customers needed to send a message to purchase their drink and pay for it.
A US oil company introduced Speedpass in the same year.
Customers could pay for the fuel at their stations by using a key fob that was preloaded with cash.
In the following years, they merged, and over 6 million US customers were enrolled to use participating gas stations.
McDonald’s tried several contactless payment options in 2001.
Speedpass was one option.
Customers could also use a small plastic wand to pay at the counter.
Mobile payments
Barclay’s joined forces with Orange to launch Europe’s first contactless mobile payments in 2011.
Customers could pre-load their phones up to PS100, and then pay amounts of up to PS15 using their phones.
Different types of mobile payment explained
Mobile payments are any transaction that is made using a mobile device with the help of an aeps portal.
payments and mobile wallets are two of the most well-known mobile payment methods.
There are also many other types of mobile payments with aeps portal, such as:
What is a mobile wallet and how do you use it?
A mobile wallet is an app for smart devices that stores the user’s debit or credit card details.
This allows consumers to pay for their transactions with the device.
Mobile payments can be made with a mobile wallet.
A mobile wallet can be downloaded on a user’s device.
Then, they can add their card details.
Because mobile wallets use tokenization, they store sensitive card data securely.
This ensures increased payment security for the merchant and the consumer.
A randomly generated alphanumeric ID replaces the 16-digit credit card number and creates the token.
The user must bring his mobile wallet with him to make a mobile payment.
To complete the payment via proximity, the POS must be enabled using NFC technology (which we will get into more detail below).
The UK had approximately 8.5 million residents or 16% of its adult population.
79% of those registered users recorded a payment.
What are NFC Mobile Payments?
Near Field Communication (NFC), payments allow for the use of mobile wallets or contactless payments.
NFC allows two devices (e.g NFC-enabled card reader and mobile phone) to communicate wirelessly with each other when they are within two inches of one another.
Both devices must be equipped with NFC chips to make this work.
NFC mobile payments can be used in two ways.
One-way communication is where a powered device such as a card reader, or travel card terminal can read and write on NFC chips.
The NFC-enabled card reader or terminal reads the card and subtracts money from that card’s balance.
NFC-enabled terminals for travel cards at London’s bus and underground stations are available.
They can accept mobile payments and contactless payments.
Two-way communication is where two NFC-enabled devices can read and write to each other.
Two-way NFC mobile allows users to transfer data (images and files), by touching both devices.
Payments via a magnetic secure transmission (MST).
Magnetic secure transmission (MST), is very similar to NFC.
MST payments use magnetic signals to establish a connection between the mobile device of the user and the POS terminal.
This signal is analogous to the magnetic connection that traditional credit cards create when they are swiped through POS terminals.
MST technology is compatible with all NFC-ready terminals that can accept contactless payments.
The country that it supports varies.
Customers can use the Android device to mimic a physical card swipe.
It is only available for the most recent smartphones.
Payments based on sound waves
Mobile payments that are sound wave-based or sound signal-based enable contactless mobile payments using sound waves.
Transactions are made using unique sound waves that contain encrypted payment data.
To securely transmit payment information, the terminal sends sound waves from the terminal to the mobile device.
The terminal then converts the data into analog signals, which completes the transaction.
Sound-based payment technology is quite secure because it uses tokenization and other encryption methods as well as authentication via PIN/Password or biometrics.
Payments for Quick Response (QR),
Created in 1994 matrix barcode ,QR code is its trademark.
It served the Japanese automotive industry.
Since then, it has been used in many settings, including as a mobile payment method that is particularly popular in China.
QR payments
Scan the QR code using the software in the mobile phone and decoded by scanning it both horizontally and vertically.
The phone’s camera captures it and then it converts it into a string of characters.
The phone will process the information, opening a browser link to confirm the payment information, verifying geolocation, and other operations.
You can make QR payments in these ways:
The user scans the QR code
A QR code app allows QR code payments.
The user confirms the price, if necessary, before taping to complete the payment.
The merchant scans the QR code of the customer.
Once the merchant has set the total transaction amount, the user can open the app to allow QR code payments.
The app displays a unique QR Code that identifies the user’s card details.
The merchant scans the QR code and completes the mobile payment transaction
App-to-app payment:
The merchant and the customer both open the appropriate apps.
Through their app, the customer scans the unique QR code of the merchant.
The customer confirms the amount they wish to pay and then taps to make the payment.
Mobile to mobile payments
Mobile-to-mobile payment allows for quick and secure transactions using a mobile phone number.
Consumers have to sign up and subscribe in order to use mobile payment facilities
Mobile bank transfers
A bank offers mobile banking, which allows customers to conduct financial transactions remotely, such as mobile bank transfer, via a mobile device.
With 48% of UK adults using mobile banking, it is clearly on the rise (UK Finance, 2018 reported figures).
Mobile bank transfers can include P2P (an abbreviation of person-to-person or peer-to-peer transfers), payments, and bills.
helps online merchants across all sectors, including but not limited to retail, travel, hospitality, gaming, to optimize their payment performance and achieve increased conversions.
Mobile payment has revolutionized business payment
With the use of mobile devices by consumers on the rise, every merchant needs to ensure that their business provides an enjoyable experience, where the customer can easily checkout and pay for their purchase.
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