The Most Important Facts About Mobile Payments

The Modern Payment Method

Mobile payment has been around for a long time. Still, there is uncertainty and confusion about what it exactly means and how it works. In this guide, you will find all the information about the essential questions about mobile payment.

What Is Mobile Payment?

Mobile payment is a payment method that allows you to play wirelessly using devices such as smartphones, tablets, or smartwatches. It replaces cash and EC / credit cards. It is now standard in many shops. You can also use your smartphone to pay in some supermarkets.

That’s How It Works.

All you need is a suitable device and an app. The two most common transactions when paying are made using an NFC chip and a QR code. NFC means ” Near Field Communication.” Many smart devices are equipped with such a chip. It is based on radio technology.

The required app serves as a digital wallet. This allows you to store the selected means of payment, such as the bank details. You hold the smartphone up to the NFC reader at the checkout, and the chip does the rest of the work. With some app providers, it should be noted that from 25 euros, you have to set up additional security steps to confirm the process, such as a PIN, fingerprint, or Face ID.

QR Code: The Alternative To The NFC Chip

The code on the invoice or at the checkout is scanned with the smartphone’s camera. The means of payment stored in the app are then read in via the QR code, and the amount is debited. This can be done via PayPal, among other things. So the procedure is relatively simple, the significant disadvantage is that you need internet access.

Who Offers Mobile Payment?

You get the right app from your financial institution (for example, savings bank) or third parties. According to a current Statista survey, the top seven most popular mobile payment providers are PayPal, Apple Pay, Google Pay, Payback Pay.

Advantages

Of course, the mobile payment method has some advantages. It saves time – looking for annoying change at the checkout and enduring the impatient looks of people in the queue is eliminated. It is also more hygienic to pay cashless. Another advantage is that every payment is wholly documented.

Mobile Payment Security Concerns

Most providers attach great importance to high-security infrastructure. Still, people’s safety concerns are justified. Despite security measures, a hacker attack cannot be ruled out one hundred percent. Many are unsure and shy away from this payment method, especially regarding how to proceed if you lose your mobile phone. If this is the case, users must inform their payment service provider. If a payment has already been made at this point, the account holder is usually up to 50 euros. The general rule is to block all cards and linked accounts as soon as possible. Debits not made by theBank report.