Mobile Payment Technologies Have Significantly Improved People’s Payment Experience

Mobile payment technologies enable consumers to make immediate payments for services and products. A mobile payment is a payment made through a portable electronic device such as a cell phone or tablet for a product or service. Mobile payment technologies can also be used to send money to friends and/or family members with the help of mobile payment applications. Transactions are processed through unique sound waves containing encrypted payment data. The terminal sends sound waves to the mobile device to securely transmit the payment details. Then the user’s phone converts that data into analogue signals that complete the transaction. 

Mobile payment technologies help avoid the usage of coin, paper, currency, and plastic media such as paychecks, checks, and debit or credit cards. Both developed and emerging economies have started adopting mobile payment technologies due to the increasing development of fast internet and increasing penetration of smartphones, as well as due to the emergence of ground-breaking payment solutions. Moreover, the COVID-19 pandemic has increased the demand for contactless payments following recommendations by the World Health Organization (WHO), accelerating the shift from cash to digital payment options or solutions.

Furthermore, rise in adoption of advanced technologies, such as mobile point-of-sale (m-POS), wearable devices, and near field communication (NFC), is expected to increase the demand for mobile payment technologies in the forthcoming years.

Mobile point-of-sale (m-POS) is a mobile app that allows user to accept credit card payments on mobile device. Users can access it on a smartphone or tablet. m-POS performs all of the same functions as a regular cash register or traditional POS software system. Android-based smartphone or tablet can be transformed into a mobile POS with the ‘Tap on Phone’ app and an activated near-field communication. Moreover, mobile POS is useful for businesses that will take transactions on the go. It is an ideal way for businesses such as food trucks, home and repair services, market stalls, etc. to take credit card payments on the go.

Wearable devices: wearable technology is the next phase in payment technology and is currently on a course toward revolutionizing the industry. Up to half of all consumers in major markets like North America, Europe, and Asia Pacific use a combination of smartphones and wearables to make payments. Wearable payment devices in particular have created a rapidly growing niche in the payments industry. Furthermore, payments through mobile devices make shopping safer and easier, and mobile payment technologies have received a major push by the fintech and e-commerce sectors.

Near field communication (NFC) is a set of communication protocols for communication between two electronic devices over a distance of 4 cm or less. NFC payments are contactless payments that use NFC technology to exchange data between readers and payment devices like Apple Pay and Google Pay in smartphones/smartwatches, or tap-to-pay credit and debit cards. NFC payment technology already comes standard with most Android and iOS devices and a growing number of credit and debit cards. Moreover, NFC mobile payments are in fact more secure than Chip and PIN debit card payments.

Mobile payment technologies are those kind of technologies in which the users can transact directly with different people and organizations via the use of their mobile phones or smart phones, in the very basic economic sense for the trade of commodities and services availed by user from any other source. Mobile payment is the hottest buzz word in the world of online business today. There are several companies that are involved in mobile marketing activities, to provide best possible mobile shopping experience for their customers. Every person who desires to buy something online can directly purchase it using his or her mobile phone. Thus this not only increases the sales ratio but also helps in increasing the customer retention rate.

Let’s now consider the different types of mobile payments, such as proximity payment systems, branded proximity payment systems, and payments among individuals.

Proximity Payment Systems: Mobile proximity payments are mobile payments in which both the payer and the recipient are in the same location and where communication between their devices occurs via a proximity technology (such NFC, Bluetooth technology, Quick Response (QR) codes, etc.). To use the system, a consumer taps the payment card near a point-of-sale terminal equipped with the technology. 

Branded Proximity Payment Systems are different from proximity payments owing to their limited use to single merchant’s stores. These systems use the same technology as proximity payments but can only be used at single merchant stores. P2P payments can be used to transfer funds among users who have installed a proprietary app.

Payments among Individuals, also called P2P payments, can be used for things like paying a friend back or making a bet. Mobile payment technologies can be used to send money to friends and/or family members with the help of mobile payment applications. 

In order to make a mobile payment the user need a mobile phone and an internet connection that are capable of wireless data transfer. This is a great way to save money and to simplify the financial life. The most popular ways to make mobile payments are through the use of mobile payment technologies. These technologies allows user to make payments for items that can be purchased using a cell phone, such as groceries, gasoline, clothing, books, movies, etc. Most people simply make payments using a web browser. This is usually done by manually entering debit or credit card details on the payment page or by charging a pre-approved card linked to the mobile app, such as Apple Pay, Google Pay, Venmo, PayPal, Samsung Pay, etc.


Millennials are using P2P, proximity, and branded proximity in their day to day life and account for a large amount of mobile payment technology. Mobile payment technologies have had far-reaching implications for how business conducted worldwide. These technologies also had a tremendous social impact in low- and middle-income countries. Furthermore, mobile payment has significantly improved the people’s payment experience. Innovations will make payments more cashless and invisible in the future. More cash will be displaced by electronic transactions as payments innovations will make it beneficial for customers to use payment cards even in small denomination transactions.

Passionate about design, especially smartphones, gadgets and tablets. Blogging on this site since 2008 and discovering prototypes and trends before bigshot companies sometimes