Most Canadians adore there Smartphone like anything. Our smartphones are the most sophisticated pieces of technology that enables us to communicate, dive into the ocean of entertainment and seek comfort in its most crude form.
Speaking of comfort and Smartphones, mobile payments has become the Today, a grand fraction of tech-savvy Canadians are using different mobile payment options to transact for goods & services. The mobile wallet (or digital wallet, in many cases) is one of the fastest rising trends in financial technology today. These systems a lot of time and provide next level of security while making or accepting payments.
A mobile wallet is a type of payment service through which businesses and individuals can receive and send money via mobile devices. It is a form of e-commerce model that is designed to be used with mobile devices due to their convenience and easy access. A mobile wallet is also known as mobile money or a mobile money transfer.
The mobile wallet (or digital wallet, in many cases) is one of the fastest rising trends in financial technology today. There has been a great deal of innovation and discussion going on about it, particularly when it refers to cashless payments that can be done offline or online. But what exactly is it, and how does it work?
How Do Mobile Wallets Work?
Digital wallets mostly work through apps with your smartphone. The communication channel might differ from NFC, WEBLINKS, QR-code, SMS, Social Media, etc. but the overall concept of wallet will remain same. To better understand the working of wallets, you first need to look towards how wallets are differentiated. The digital or mobile wallet (sometimes called an e-wallet) is most often an app that can function within a smartphone and aims to replace carrying cash or checks, and stores all your credit and debit cards for you. In essence, it is an advancement of technology that aims to give you convenience and protection. Instead of carrying a wallet full of bills or credit cards, many of which containing your personal information and could very easily be stolen by a thief, the mobile wallet will hold everything for you.
The mobile wallet bolsters a new era of digitized finances. One of the chief advantages of this innovation is convenience. By far, convenience is its biggest selling point, as the mobile wallet can usually be used in Point-of-Sale retail terminals, for online transactions, as well as in-app transactions. It virtually eliminates the need to bring cash or even credit cards.
These digitized wallets work with banks all around the world in order to be able to facilitate the transactions.
It helps to understand that there are a few major categories of mobile wallets — those offered by Apple, Google and Samsung, for example, those offered by major banks, and still others offered by merchants, in which you download their app onto your device and store payment credentials in their app to use for payments. They work by either storing your payment credentials on your device, or off the device on a server. At the point-of-sale, wallets such as Apple Pay can be used at merchants accepting Apple Pay, while merchant wallets can only be used at that merchant’s stores.
While it’s still early days for mobile wallets, it’s not hard to image a wallet-less world. Already it seems a significant portion of Canadians would be in favor. According to the Canadian Bankers Association, 91% of Canadians say innovations make banking more convenient. When it comes to mobile banking specifically, the numbers (unsurprisingly) show that younger people are more open to using their mobile phones to deal with money. About 42% of 18- to 34-year-olds use mobile banking comparable to 92% of those over 45 who do not.
Most popular mobile wallets used in Canada
- Apple Pay
Apple Pay is an easy mobile payment system coming from the technology giant Apple Inc. It was introduced in 2014 and is adopted by several top-tier brands like Walmart, Starbucks, McDonald’s and Apple Store. You can use this mobile credit card processing system to make quick and safe payments in person, on the web, and in the iOS App Store.
- Android Pay
Yet another digital payment system which tempts the population of Canada is Android Pay. It was initially released 2015, making it possible for users to kiss goodbye to physical credit cards. A user who wishes to experience secured and seamless online transactions can store their credit/debit card info on their Android Pay account and use the same anytime to buy a product or service.
- Samsung Pay
Samsung Pay is also rated among the most widely used mobile payments systems. Cherishing the brand value of Samsung Electronics, this easy to use and highly secured payment service allows users to pay for goods & services by a simple ‘wave’ of the Samsung device (select models) near a cash register. There won’t be a need to carry or swipe the credit cards! Unmatched convenience, isn’t?
These mobile payments systems are happily adopted by tech-friendly peeps of Canada to add more comforts in their everyday life. You say, which one is your choice?
How can I accept mobile payments?
To accept mobile payments at your store, you need to get a point-of-sale device that’s equipped with NFC technology. Setting up mobile payments is generally fast and affordable. To accept mobile payments through digital wallets, you need a digital wallet provider. There are dozens of digital wallet companies from which to choose. Talk to your existing payment providers to see if they already work with mobile payments and digital wallets.
How Can Mobile Wallet Payments Help My Business
Increased customer use of mobile wallet technology has benefits for businesses of all sizes.
Reduced fraud – mobile wallets are harder to steal or duplicate than cards or cash
Decreased payment time – especially important for high-volume businesses
Lower fees – processing fees are expected to decrease over time relative to traditional cards
Better customer loyalty – built through sales and incentives sent directly to smartphones
Leveraging new technologies that connect directly to a rich software experience in the customer’s hand can help enhance their experience and educate them about your company. Innovative small businesses will go beyond merely accepting mobile wallet payments to forming more comprehensive mobile strategies than their direct competitors.