Mobile Payment, very famous nowadays by the names of mobile wallet and mobile transfer, is the most recent revolution in the fields of exchange of currency and other financial transactions like billing, etc. Not just the most preferred and reliable choice whenever finance needs to be transferred, mobile payment methods are extremely advantageous for all its consumers, whether they may be customers or merchants. The benefits of mobile payments that are going to make this new method of money transfer take over the payment methods previously being used are discussed below.
Benefits to Merchants
1. Cost Efficient Solution
Fraud losses are significantly reduced with the help of mobile payment since the payment processing costs are controlled on a much better scale. Mobile payment methods also provide choice among different payment options according to your best interest – like there may be a case where the cost of a certain item is lesser using one account due to some privileges or bonus points as compared to other accounts. Also, the card processing fee, charged in case of plastic cards, may also be avoided by the merchants.
2. Shopping Experience
A very important factor that defines the loyalty of a shop among its customers is the experience of shopping. Once dealt with ease and convenience, a customer shall be attracted to one shop for at least one considerable period of time. A provision of mobile payment methods may serve as the required service to attract customers.
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History and data recording of the customers can serve as a very useful feature for the merchants, especially in case of regular customers, as it provides them with a command over the needs of the customers as they are already aware of what they usually purchase. It can also help them attract their customers by promotional advertisements to these customers in accordance to their purchase history.
4. Market Fragmentation
It defines the concept of market within a market – every merchant of a certain category of products is a market in itself as one can sell similar products in many different and innovative ways, rendering increase in customers. Provision of mobile payment at a shop will force others to go for it considering the competition among these merchants to serve the customers better.
Benefits to Consumers
The fast and quick services of mobile payments can attract many customers by its ability to save time – preventing the time wastage in counting the cash or swiping the credit cards, thus proving itself to be one strong determinant of the customer satisfaction.
2. Transaction Records
Mobile payments, with their ability to record the purchase history of the customers help them for further reference, comparison of prices and keeping the records of bill in case one requires replacing an item and thus needs to prove the purchase.
Mobile payments promote secure transactions – cash once theft belongs to the new owner; plastic cards, on the other hand though secure, can be breached once the one who steals knows the password and/or signatures. In case of mobile payments, the password protection of the accounts is guarded by the password protection of the mobile (which nowadays can require voice, face or retina recognition). Moreover, like credit cards, once the owner realizes the occurrence of theft, can have the services blocked for mobile, making it impossible for any other to reach the accounts of the owner.
Author Bio: Syed Irfan Ajmal is a serial entrepreneur, certified inbound marketing and author. He blogs at Inbound.zone about inbound marketing, financial freedom and productivity