Over the past fifteen years, smart phones have changed how we live our daily lives. Recently, we’ve seen the development and implementation of new ways to process payments at retail stores through our smart devices. In this blog post, we look at mobile payments, and dive into the pros and cons of using your phone or smart device for payment transactions.
What are Mobile Payments?
Mobile payments use your smart device such as a phone, watch, or tablet, to securely pay for products or services. Payments are made through an app on the device that’s linked to your bank account or credit card. Some of the major phone manufacturers have developed their own apps such as Apple Pay, Google Pay, and Samsung Pay. Many retail stores now offer the ability to pay for goods using certain mobile pay apps through a contactless process. You simply open the app and hold your phone near the register’s reader to process the payment.
What are some of the pros of using mobile payments?
Convenience is a major benefit of using mobile payments. Instead of needing to have cash, credit cards, or checks on hand to pay, you only need your phone or smart device. This saves time and the need to carry around a wallet or purse. Mobile payments are also contactless. With the COVID-19 pandemic impacting people globally, the ability to make payments without needing to handle cash or use a pin-pad is ideal.
What are some of the cons of using mobile payments?
Unfortunately, not all retail stores and phones are set up to use mobile payments. Simply put, while mobile payments are growing in popularity, they’re not as widely accepted as credit cards and cash. Many major retailers accept mobile payments, but not all, so it doesn’t hurt to have a backup if you’re unsure.
Security is another concern. If you lose your phone it could be like losing your wallet, with whoever finds it having access to your accounts. However, it’s important to note that many of these apps allow for the option to set up added layers of security such as a pin code or biometric log in. Consumerfed.org also points out that like a computer, your phone can be infected with Malware that could get access to your information. So, as always, be sure to only click or download things from trusted and secure sources.
Interested in using mobile payments?
If you’re interested in using mobile payments, take some time to research the app you would like to use and check to make sure it’s compatible with your bank, credit card, and smart device. Also, carefully read over the app’s terms and conditions to see if there are any fees associated with use of the app or transferring funds.
Bank of Southern California offers the ability to utilize mobile payments, talk to your local banker today to learn more.