Mobile payments: the phrase is something of a buzzword in the retail industry, but what many people don’t know is that it could actually describe two entirely separate processes. While both types of mobile payments solutions give retailers and other businesses the capabilities to meet customer demand for checking out, they also differ as to their purposes in different businesses. These services also differ in how or if they are handled by a credit card payment processing company.
In order for business owners to better understand these two types of mobile payments solutions, here is a quick breakdown of how this technology works and why each of these formats is used in retail and beyond:
Mobile Payments
Mobile payments for retailers are done through mobile devices like tablets or smartphones. All business owners need is a small card swiping device that clips to their tablet or phone in order to process payments. These transactions are 100% safe and PCI compliant, so businesses that travel or those that need to offer additional checkout lanes and options can let customers pay with their cards from anywhere. Payment processing companies typically handle the processing and fees for these transactions.
Mobile Phone Payments
The mobile payments industry has also expanded recently to include the use of mobile phone apps on consumers’ smartphones. These phones are “tapped” against a payment device to make transactions simple, and they can even email receipts right to customers to save paper. Apple Pay is the most popular of such apps at the moment, despite still being fairly new technology. Several retail chains are also developing their own apps, such as CurrentC, and Google has its smartphone Wallet app, as well.
Do you still have more questions about the many types of mobile payments solutions on the market today? Be sure to get in touch with a payment processing provider to find out which payments technology they can offer you. You can also leave a comment below with more questions or suggestions.