Are Mobile Payments A Good Escape From The Credit Card Fiasco

In the early 1990’s, Credit Cards were introduced for commercial use and many consumers at the time did not feel very comfortable using them as their primary means of transaction. Rumors circulated that this mode of transaction is not safe at all and all your money will be lost to the banking system. With some truth holding the rumors, yes, the interest rates applied on your basic transactions are a bit of a killer. And still one cannot say that Credit Cards are a complete success. It’s true that the West particularly in USA, the mode of currency has switched to plastic money; yet it is still an interesting fact that 60% of the American consumers do not trust the Credit Card system. The hidden charges, rising interesting rates, transparency in the transactions are some of the key areas ALL consumers raise an eye brow against. Well, I am here to tell you your troubles may soon very over. It’s time for us to get acquainted to the latest technology at offer – Introducing the new age of Mobile Payments!

Why Mobile Payments?

Your mobile is your new Wallet. Yes, for making payments through your cell phone, there are two basic criteria one needs to fulfill. Firstly, your Cell Phone should have a NFC Chip installed. If not, you can simply buy an external chip. Secondly, your merchant should have Mobile Payment facility (or an NFC Reader at the payment counter). You will be surprised to know that almost ALL merchants nowadays have this new NFC Reader installed at the counters including Wal-Mart, Walgreens, Best Buy, to even your grocery stores. Be it USA, Canada, Europe, Asia or the Middle-east; almost merchant is fast catching up to this wagon wheel. And here’s the reason why:

Mobile Payments are Secure, Transparent, Quicker and Convenient

Here’s an interesting link to how Mobile Payments work.

Save Money

So what’s the catch of switching to Mobile Payment? Simply, to save money; some mobile paymentcompanies charge less per transaction than credit card companies, which equates to direct savings.

Transparency

Through Mobile Wallets, you can have a complete view of your transaction in real-time instead of waiting till the end of the month for your credit bill.

Built Loyalty & Retention

For small businesses one cannot track a customer's buying trends or behavior through a credit card. However, with Mobile Payments, one has the complete profile of the buyers’ choice and this enables the business to serve the customers better.

Increase Incentive Programs

One of the biggest benefits of using a mobile payment option is the ability to integrate loyalty and incentive programs into the mobile payment applications. Instead of customers having to keep up with punch cards or key ring tags, all of their information is stored in the application each time they make a purchase with their mobile device.

About the Author:
This article was written by Syed Irfan Ajmal. He is a serial entrepreneur, certified inbound marketing and author. He blogs at Inbound.zone about inbound marketing, financial freedom and productivity

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