On our blog, we’ve talked a lot about emerging technologies, their pros and cons, how to ease into them, and also how to future proof your business to accept these technologies. Recently Bank of America published their annual Trends in Consumer Mobility Report. In it, they surveyed consumers on a range of topics relating on how we interact with our mobile phones. In their report they show the sharp rise of awareness and adoption of mobile payments.
While the adoption has been slower than predicted, mobile wallets are starting to gain traction as a payment option. According to the Report, in 2016 40 percent of respondents would use or already use their phone to make purchases at checkout. this is up from 34 percent in 2015. As awareness increases, mobile payments will become more pervasive.
In the past couple years there has been a significant push by companies like Apple and Samsung to promote mobile wallet technologies. These work by allowing the consumer to link their credit/debit card to a secure application on their phone, and just wave your phone at checkout instead of using a physical credit card. This is called near-field communication, NFC. Currently this is one of the more secure methods of payment. It uses some of the most advanced security and encryption features available.
Unlike a traditional credit card, the information stored is encrypted and when you run a transaction, the information is tokenized. This means a one time use code is generated and in the event the information is intercepted, it is useless to a potential fraudster. These apps also require the use of a fingerprint or password to access the application and authorize a payment, adding an extra layer of security.
To make sure that your business is able to accommodate these types of payment technologies, we recommend that your customer facing devices (terminals and pin pads) are NFC capable. Some other ways to increase awareness are to instruct staff on how to train customers and make sure you have signage letting your customers know you can accept things like Apple Pay and Samsung Pay. We here at Agapay are able to help with all aspects of this transition. If you’re interested in learning more, or want to take NFC payments, shoot us an email at email@example.com or call us at 800-644-3909, Option 1.