The Pros and Cons of Mobile Payment Systems

Mobile payment has recently witnessed a rise in its demand for more and more people capturing the gist of its ease. With mobile payment, you can pay for your services and goods via mobile without having to carry cash, debit cards, and credit cards around. Popular services like Google Wallet and Apple Pay have already started service with big merchandises across the USA. However, every technology perk that comes with a beneficial revolutionary side for the users, certainly has its setbacks tagging along.

mobile payments pros cons

Benefits of mobile payments

Let us shed some light on the benefits that come with the use of mobile payments. The advantages vary depending on the level at which mobile payment is being used. Starting with an individual, the procedure required to employ them.

Easy implementation

It is quite simple. It means that no complex how-to’s need is learned. Depending on what particular mobile payment system is being employed, a swipe across fingerprint scan or a pin is usually enough to get started with the payment. The ease of use also targets small business owners who do not want to immerse their customers into long and complicated payment routines. As simple as it is to connect the dots with the use of payment through mobiles, relatively smaller business setups are eager to join in this flow of payment, which lowers the bar of entering into the industry with heavy technology infrastructure.

Easy to use

As for the benefit on an individual level, mobile payments are just another step towards pacing up with the rapid technology boost. Being able to spend money on services and shopping without having to carry a spacious wallet or purse sounds like the heart of convenience.

Loyalty points

As long as we are keeping customers in view, services and goods can be distributed with the attraction of return. This attraction is uplifted by smart marketing tactics such as customer loyalty points and bonus points. Through a mobile payment system, the business owners can integrate loyalty points assigning very conveniently. Once the customer is at the benefit of achieving loyalty points with their mobile payment purchase, he is bound to think about returning to that store in the future. In short,

Mobile payments make it easier for small businesses to keep their customers engaged with them.

Disadvantages of mobile payments

Technical requirements

However, alongside all these factors, mobile payment systems are not being seen as helpful by all as yet. The major reason for this is that depending on the particular mobile payment scheme, the specificity of software applications and hardware devices requirements is high. Following this, more and more merchants are hesitant about adopting a wholly cash-less or plastic-less approach to receiving payment from their customers.

Everyone is not accepting

Moreover, each new mobile payment system comes with its technicalities. Thus generalization in the system seems far from approaching general merchandises. Unless most of the marketplaces are loaded with a similar mobile payment format, the public will not get used to coming directly to the market carrying a mobile phone only.

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