Benefits of Payment Channel Diversification for Mobile Banking

Technology has developed greatly in the last two years and it is mobile that has led from the front.  Advances in technology, especially in regards to devices, computers and other forms of modern communication have seen great strides and advances in the last couple of years. Modern technology now allows mobile phone owners and users the ability to access the internet, shop and undertake many other activities that were unheard of just a couple of years back.

One of the most recent developments is the use of mobile banking and the ability to make mobile payments. Mobile banking is the process of performing banking activities from the comfort of the home or office by using a compatible mobile phone. This means that by using a mobile phone, a customer can access their bank account, check their account balance, transfer money to other accounts, make payments and be alerted whenever money is deposited or withdrawn from their account. This is a huge development that introduces convenience to bank customers. The customers are saved the time and effort of having to travel to the bank or ATM machine to perform any simple transaction.

The ability to make mobile payments basically implies that a shopper or customer at any establishment can use their mobile phone to make payments for any goods, products or services they have bought. There are certain applications that enable users of hand-held devices to have money on their mobile phones which they can use to purchase goods and products, make payment for services, pay bills or even send cash to their friends or family.

There are plenty of benefits and applications of these two banking systems. When using mobile payments, a customer can safely spend their money without the added risk of carrying physical cash on them. This reduces the risks of theft or loss. Payments using mobile phones are fast, safe and secure. They can be safely used to purchase and make payments online at any time, with no need for a cashier. The technology used in mobile money systems is quite advanced and has ensured that very little opportunity exists for breaches of the system.

Mobile banking has found applications in many different areas. In developing countries, remote areas that have little or no access to amenities can undertake mobile phone banking services. This ensures these residents have an opportunity to enjoy regular banking services without the need to go hundreds of miles in search of a physical bank.

4 Things You Should Integrate With Your Mobile Payment App

Most mobile apps today are made with a good UI and functionality. But what assumes greater important with growing customer demand is the features that have been integrated along with it. This could well be said to determine even the success or failure of the app. For example, users of Starbucks would know that it is not just a mobile payment app. Combined with a loyalty program, debit note and store locator among many other features integrated into it, it is no wonder that it continues to perform much to the chagrin of its competitors.

Experts would tell you that you should think carefully about how your mobile payment app would fit in your overall enterprise mobility program. This is in contrast to the unplanned approach that many organizations take. In this article, we look at four things that you should be looking at integrating with your mobile payment app.

1. Integrating rewards programs

A survey by Compete shows that no less than 30 percent business firms who sold their products electronically integrated loyalty apps with their enterprise apps. This is not only a money saver, but a great time saver too.

2. Tracking financial records

One common feature among mobile payment apps is that the payment is reflected in the financial statement immediately. A survey conducted by Accenture shows that 60 percent of users would pay through a mobile payment app if they kept track of receipts.

3. Focus on UX

A casual reading of the reviews of an app would tell you that it is the UX that most often brings you negative reviews. Set the toughest parameters to ensure UX issues are chaffed out well before the app reaches production. This is extremely important as once the app is out there, no amount of post-facto correction will set right the damage done by a bad review.

4. Security

This goes without saying. Security is paramount not only for payment apps, but also for the rest (in fact, the entire enterprise mobility program), as users today are extra careful about data theft and privacy issues. Since mobile apps access corporate service servers all the time, safety of the confidential data stored in the server is important.

The Battle for the Mobile Payments Space – QR Vs NFC

We have heard of the race between NFC and QR to replace our credit cards. But, what exactly are they? And who uses them and how? In this article, we look at what QR code and NFC are, and how the mobile world intends to leverage them in different ways.

QR Code (Quick response codes)

Mobile devices’ cameras scan a code to unlock the user’s payment information and complete the transaction. The process can be used on any device running Apple iOS OR Google’s Android software.

QR can be displayed on phone and scanned by POS or other Smartphone tablet.

è QR Codes can be display at registers in stores

è Codes can be printed on restaurant bills

è Cash and credit cards never change hands

NFC (Near field communication)

It enables radio connection from one device to another, similar to Bluetooth technology. It is a secure element for storing sensitive data that is separated from the rest of the system. It provides for two-way communication (real-time) between devices, payment and acceptance.

But the devices must be within range of each other. Across a broader spectrum, it provides for:

è Data transfers

è Keyless door entry

è EMV Compliance- Ensures usability/accessibility for NFC mobile payments

How companies fare on this count:

1. ISIS (Merchants and financial institutions)

A software-based mobile wallet that organizes credit and debit cards, loyalty cards, and special offers in one app. Provides contactless payments through NFC and has NFC enabled terminals.

2. Google Wallet

Users store credit and debit information on the app. Payments are made through NFC technology. Cloud-based version supports credit and debit cards from Visa, MasterCard, Amex and Discover.

3. Level up

It operates on the premise that mobile payments should be easy and free for merchants and consumers. Here, consumers’ credit or debit cards are associated with a unique QR code. It is strictly QR based and works for iPhone, Android and Blackberry.

The Future of the Mobile Wallet!

What does the future hold for the payment industry’s biggest payment revolution in years? We take a look at the good, bad, and the ugly of mobile wallets and how things should change for the better in the coming years.

Mobile Wallets

è The Good

·         Available on almost all mobile phones

·         Near instant payment for users-little waiting around for a payment to confirm

·         Multiple ways to pay for goods- can use NFC, BTLE, QR Code, P2P via e-mail or SMS

·         Secure connection

è The Bad

·         Cumbersome, unintuitive, and not geared towards the user

·         Too disparate a market i.e. too many wallets offering the same thing

·         Little benefit to the user over using a card or cash

The mobile wallet is already changing, but the future will see it become the major payment channel for many people around the world. Here are 5 ways that we think things will change:

1. HCE = Simplicity

Now that MasterCard and Visa have shown support for Host Card Emulation, mobile payments and mobile wallets should become even quicker and simpler to use.
Still, the biggest hurdle for the future of wallets is the time it takes to open a phone app and pay. In the future, it’ll be always ready to go.

2. Wearables

Wearable technology still seems like a gimmick to many- after all, it’s hard to make Google glass look overly appealing to the broad populace. However, payments from a mobile wallet would be vastly improved if all you needed to do was look at an item and tap a button to pay.

3. Biometrics

Apple may have adopted early, but with Samsung having followed, Biometrics could be the key to removing cumbersome security precautions. Place your phone over an NFC pay-point or near a BLTE ‘beacon’ with your thumb on the reader – and voila, automatic authentication and payment confirmation follow.

4. Parity

While some may not like this feature, many mobile wallets will accept multiple payment providers, but most mobile providers will have joined forces to create stronger offers.

5. Apple


You certainly can’t afford to put all your eggs in one basket, but the likelihood of Apple getting into the payments action is high. And, if it did put its systems together, it ‘the shake up the whole industry boosting mobile payment and wallet use through the roof. Perhaps, it’s down to them to change customer opinion!

How Mobile is changing the Way we Shop?

Shopping has evolved dramatically over the past few years. It used to involve newspaper ads, clipping coupons and driving from store to store to compare deals. Now social media and mobile innovations allow shoppers to post photos of their purchases, ask their friends for recommendations, read reviews for their phone and compare prices without ever leaving the store aisle. We look at how retailers can use mobile to improve consumers’ overall shopping experience.

Social media is increasingly influencing shopping habits with 3 out of 4 customers admitting to having used FaceBook to choose a shopping destination or restaurant. A majority of customers also hold online conversations with brands to seek a better experience in the future. So, how do businesses use mobile to provide that extra value to the consumer?

1. Store-Specific Apps

Retailers with their own apps can follow shoppers to create lists, find relevant coupons and deals, and even load these deals directly onto loyalty cards. Some businesses have taken doesn't even further by allowing users to start shopping on one device and pick it up later from another.

2. Help Shoppers Find Items

Some apps offer in-store location features that can help customers find a specific product without flagging down a salesperson. This is very useful as users like to be guided to the product without third-party intervention.

3. Compare/Contrast

When it comes to making a purchase decision, shoppers are always looking for easier ways to read reviews check prices and compare multiple products. For example, Best Buy puts QR codes on all of their products to help with this, allowing customers to simply scan the codes for additional product info and compare up to 4 Best Buy products at a time.

4. Ease the Checkout Process

While in-store mobile payments are still in their infancy, the appeal of speeding up the checkout process is undeniable.  Sloppy checkout processes are foremost among the reasons for customer frustration and easing it would go a long way in ensuring satisfaction.

5. Remind Them to Come Back

Every store wants repeat business and an app is the perfect way to get customers back. Apps can send alerts about new items, notify customers when their prescriptions need to be refilled, or promote limited-time sales.

6. Give Them the Whole Picture


Retailers can use apps to ensure a positive brand experience even after customers leave the store. Offering ‘how-to’ videos and suggestions based on customers’ past purchases would be a good idea.  For example, a customer who just bought an iPod might be interested in a speaker. 

5 Best Mobile Payment Options

Not very long ago, you could walk into a store and expect to pay at the cash counter. But now, at most stores, you only need to find a salesperson nearby with a Smartphone and a card reader — or simply pay through your Smartphone app.

Technology has made it easier than ever to integrate mobile payments into a business. From standalone card-readers to application programming interfaces (APIs), mobile payments have come a long way.
In this article, we look at 5 most prominent mobile payment modules available in the market today.

PayPal

This legacy payment-processing company has been revamping its APIs and software-development kits (SDKs). Last year, it announced it had incorporated the technology to scan credit card information with a phone camera. PayPal has got its payment system integrated with Uber, so Uber customers can now pay through their PayPal accounts.

Braintree

If that’s not good enough, companies can try Braintree, which targets the developer market. It uses a simple API that is accessible through Python, PHP, and Node.js. Hip services such as Airbnb depend on Braintree to accept payments within their own apps. With one-touch payment option available for consumers thanks to the Venmo acquisition, Braintree could be a good choice.

Stripe

Stripe is one to watch out for in the near future. Stripe claims thousands of mobile apps use Stripe’s native 
mobile libraries to add payment components. Stripe works with 130 currencies and raised $80 million in January last year.

PaySimple

This is one for small or medium-sized business. PaySimple supports credit card processing with a free card reader that plugs into iOS devices. Credit card transactions come at a charge of 29 cents and a 2.39 percent fee (slightly lower than PayPal).

Forte Payment Systems


Companies needn’t pay anything to use Forte’s developer program. The company’s future prospects look exciting with new APIs on the anvil. The company charges $99 for its card-reading device iDynamo into which you can slide your iPhone. And the fact that the company has never sought venture capital means it should stay true to its vision, without going back on investors’ demands. 

Mobile Payment Trends 2015!

People today and longer want to walk with their cheques all the way to the bank to make payments or encash them. Mobile technology has enabled even countries in sub-Saharan Africa to be able to receive subsidies and other social security benefits through their mobiles. Today, people pay monthly bills and insurance premiums through their mobiles. In this article, we look at some of the mobile trends that are expected to lead the pack in 2015.

The Numbers

According to the Vision gain payments in mobile 2010-2015 report, there will be 1050 million mobile users by the end of 2015. Also, Smartphone’s in use will surpass 1 billion and double in 2015. This is expected to further grow since consumers prefer to purchase directly from the manufacturer (which is what happens in ecommerce). A statistic:  41% of iPhone owners have made a purchase on their mobile phone.

Newspapers and Quick Service Cafes

Mobile payments in Newspaper publishing (closed-loop mobile payment) have become very popular in the last few years with a large number of users preferring to subscribe magazines and fortnightlies online. Almost all newspaper publishers have Android and iPad apps. With kindle readers increasing, this trend can only be expected to grow further up in 2015.
As for restaurants and cafes, a simple statistic would suffice: $3 billion has been loaded on to Starbucks cards in 2012 and 2 million mobile payment transactions occur every week in restaurants in America alone.

Transportation and Parking

Parking woes have long remained the grouse of urban workers. With the advent of pay-by-text parking, it’s farewell to coins. SMS remains the dominant technology in developing m-payment markets due to the constraints of mobile payment devices and the ubiquity of SMS.
Transport ticketing, needless to say was one of the first to go mobile as customers took to it like a fish to water what with 480 million mobile bar coding passes being issued by the global airline industry. Even in taxis, the dominant mode has been to pay by Smartphone, scanning a QR code.

Vending Machines and M-Donations

Coca-cola, Pepsi and a host of other FMCG giants have already launched vending machines which accept contactless payments made with Smartphone’s. As for m-donations, a precedent has already been set with the U.S presidential election of 2012 enabling people to donate to candidates via text message or a Smartphone app.

Small Business Solutions


Eyeing the growing number of customers who rely on their “Digital wallets”- Credit card numbers stored in a phone app, small business owners are scrambling to find efficient means of accommodating these early adopters without too much cost to their operations or the need to overhaul existing payment systems. This would be one of the major drivers of growth in 2015.

9 Things You Need To Know About Mobile Payments

Technology is evolving at such a rapid speed that businesses need to keep pace or fall back. Mobile phones have contributed greatly towards enhancing the quality of our lives and mobile payments is an essential part of this. In this article, we look at how exactly they help securing our financial dimension. 

1. Mobile Payments Are More Secure
Safety and security are global concerns and mobile payments ensure precisely that. Mobile payments do away with the need of you having to take your wallet wherever you go.

2. They Provide Flexibility
Carrying cash has become not only an inconvenience but also a danger. Instead users now have the privilege of just tapping your mobile phones to complete transactions.

3. Mobile Payments Are Growing Globally
Many parts of the globe have little access to financial services, but 85% of the global population has mobiles. So payments through these phones are definitely on the path towards high growth

4. They help Economies Flourish
From transferring money to pay your utility bills to sending money home, mobile payments make transactions so much more smooth and streamlined. They also help rural economies by making micropayments possible.

5. NFC is The Way of the Future
A simple and secure technology solution, near field communications (NFC) helps businesses and consumers alike make faster, safer transactions. They’re called contactless payments because all you need to do is keep your NFC enabled phone near a suitable reader to make payments.

6. It’s Already Built into Many Phones
Many of the latest smart phones already have built in NFC chips, so adopting this technology is even more hassle-free. Just upgrade your phone or maybe get an NFC sticker for your present phone and you’re ready to make mobile payments.

7. NFC Saves Time and Trouble
Whether you pay for your bus fare or for a movie show, NFC payments make the process so much faster that it’s already a trend that’s catching on everywhere.

8. They are easy to Top-Up
Whether you are online or at a mall, your mobile wallet can be topped up anywhere. Life’s so much easier, isn’t it?

9. Mobile Wallets Make Money Transfers Easier
Mobile wallets also allow you to send funds to your family and friends who may need money fast. In addition everything from electricity bills to parking fees can be paid by you, even if you are far from home.