Ready to leave your wallet at home and use only your smartphone to perform all your everyday financial transactions? This is possible with mobile payments, which may actually someday replace most physical payment types like cash and cards.
"Mobile payments" is a big term that can mean everything from paying at restaurants with your phone or swiping your card on your friend's tablet, to transferring money to family or coworkers without needing to physically hand them the cash.
Different Types of Mobile Payment Systems
In the UK there are a number of different ways by which you can pay someone using your mobile phone.
Many banks, building societies, and internet payment companies like PayPal have apps that can be downloaded directly to your smartphone and can allow you transfer money quickly and safely to another person’s account. These helpful apps also let you keep track of your balance and more.
One of the most recent innovations in the field of mobile payment is applications that only require the recipient’s mobile number to transfer the money. Paym is an example of this. Most highstreet banks support the use of Paym and the person hat you are transferring the money to does not need to be a member of Paym. This makes it even easier to make payments on the go as you do not need to share delicate information such as your account number and sort code.
Maybe most popular is Apple Pay which works with iPhone, iPad, and Apple Watch. If a POS system supports Apple Pay, when you're ready to check out, you can use your stored credit or debit card to pay with just a quick press of your fingerprint or the side button on your watch. Mac computers can use Apple Pay too
Barclay’s Pingit and Zapp are other similar apps that allow you to send money to a recipient by just entering their phone number and the desired balance.
In brief, there are two main methods of mobile payment:
- Transferring money using an app from your bank or building society
- Using a third-party application
The Advantages of Mobile Payment
It is just as quick as transferring money directly from your current account, so the recipient will receive the money just as quickly!
It is incredibly easy to set up and make a payment, making it perfect for those times when you need to pay a friend back.
Services that just require the recipient’s mobile number to transfer the money offer better security and convenience as they will not have to give their sort code and bank account number.