The term Mobile payments is a comprehensive term indeed. The payments ecosystem has undergone a rapid development over the past years and seen many changes with the rise of technology. These changes directly improve the the way how the transactions are done and money is handled.
The focus of mobile payment technologies is to connect mobile devices with the existing payment infrastructure by improving the efficiency and security.
QR code payments are making a comeback and leading the way
The most exciting growth across mobile proximity payments are is the QR codes. QR code-based payment platforms; like Alipay and WeChat Pay have emerged as a cultural phenomenon in markets like China. These payment platforms have accounted for more than $5 trillion transactions in 2016 and have made cash obsolete in urbanized areas.
The success of QR codes is not only limited to Asia, but is utilized worldwide to make the cashless society a reality. Mobile payment platforms all over are uniting for the implementation of the optical scanning technologies technology; such as QR and barcode technologies.
Merchants all around are taking the advantage of the simplicity and the flexibility offered by QR codes when handling payments. The introduction of a dedicated QR Code specifications is sure to promote the global interoperability and improve security. These developments will lead the way for the next generation payment platforms to have an accelerated growth.
Sri Lankan Startups like such as; DirectPay, eZ cash, genie and FriMi are bringing innovative technologies to the payments ecosystem of the country.
NFC wants to crack the code
NFC has emerged as a frontier in proximity payment technologies. Host card emulation (HCE) significantly reduceds complexities associated with the deployment of NFC based payment solutions for banks and retailers. This has enabled users to make standardized EMV contactless transactions with their mobile devices. EMV equips the payment instruments with embedded microprocessor chips that store and protect sensitive data.
With the rise of OEM platforms and mobile wallets tech, NFC mobile payments show no sign of retrieving. This growth is largely supported by the mass availability of NFC-enabled devices and the expanding EMV contactless infrastructure.
The future for mobile payments is not about simplifying existing payment processes but in enabling innovative seamless buying experiences.
Nobody likes to wait in line. Removing long queues at the checkout is what every merchant and every buyer wants. Mobile wallets that have the scan-and-go technology lets consumers scan their items as they shop and check out quickly from the counter once the scanning is done. This removes the need for traditional pay-points and naturally eliminated the long queues.
What is Tokenization
Tokenization unifies mobile payments security by bringing a new wave of security for mobile payments. Tokenization is an essential element that enables secure mobile transactions. Payment tokenization reinstates a consumer’s primary account number with a unique payment token. This token is restricted in its usage.
Tokenization can secure in-store transactions made by different payment technologies, regardless of it been NFC or QR. It further reduces the risk and impact of the card on file fraud using stored credentials, enhancing the security of in-app and in-aisle payments.
With the growth of mobile payment technologies, the way we pay for things will keep changing all the time. The development of a secure and convenient experiences are vital to establish buyer confidence and to encourage the adoption of new payment methods.
The role of tokenization has contributed significantly for the expansion of the mobile payments ecosystem worldwide.