5 Min. Read

What Is Mobile Payment? Definition, Types & 3 Best Apps

July 7, 2021

Mobile money transfers are so convenient and fast. Learn all there is to know about this new way to pay.

You can do everything with your smartphone nowadays. You can shop, browse, research, navigate, stalk and snap. It stands to reason that your smartphone is now a preferred method of payment.

Mobile payments are fast becoming one of the most popular ways to pay.

They are convenient, fast and secure. This guide will tell you everything you need to know about mobile payments and how they affect you as a business owner.

Here’s What We’ll Cover:

What Is Mobile Payment?

Why Use Mobile Payments?

Best Apps for Mobile Payments

Key Takeaways

What Is Mobile Payment?

Mobile payment is a transfer made using a smartphone or tablet. Digital banks have popularized mobile transfers with innovative app technology.

Now with a few swipes, you can send money to friends or professionals. You can even send international payments using your phone. What an age we live in.

The Different Types of Mobile Payments

Barcode transfers

You scan a barcode on a screen or in person to send money instantly. Usually requires some kind of intermediary pay service that the recipient and payer need to be registered to. This is how brick-and-mortar businesses can leverage mobile wallet technology.
Mobile bank transfers

Digital apps allow you to send money directly from your bank account to another bank account using your bank’s app. Only requires the payee’s bank details. Payor and payee do not need to belong to the same bank for this to work. You don’t need merchant accounts either.
App-to-app transfers

This includes cash apps like Venmo as well as payment processors like PayPal. Both parties need to have the app or use the web version to transfer money.
Contactless payments

You can swipe your smartphone or smartwatch over a PoS terminal to pay with a digital debit card. This is how mobile transfers can work for in person payments.

Why Use Mobile Payments?

Mobile payments are fast

We all want to get paid faster. Accepting mobile payments is a way to receive money in real-time. Depending on the app you use, money can be in your account within seconds. The customer will also feel more at ease as they’ll get an instant notification and receipt once the payment is processed. Win-win!
Mobile payments are secure

Because there is no physical wallet to carry around, the chance of theft is much lower. Smartphone manufacturers have made it their business to make the modern mobile nigh on impenetrable. Many people prefer paying with their smartphones because of the security benefits.

If you have ever been locked out of your phone, you know this to be true (I have!).

They have fingerprint readers, voice recognition, and even face scanners. Smartphones are practically fortresses for your money.
Everyone has a smartphone

Smartphone use is pretty ubiquitous as soon as a pre-teen complains enough to receive one. Pew Research shows that households are 17 percentage points more likely to have a smartphone at home than a laptop or home desktop computer.

So, mobile payments are simply more accessible to all potential customers.

Best Apps for Mobile Payments

1. Cash App (formerly Square cash)

Cash App is the new kid on the block in every sense of the word. It was popularized by social media and is known as Gen Z’s Venmo. You can simply send money from your phone as the app links to your bank account. The recipient doesn’t even need to have a Cash App to be indoctrinated. You can send a text message with a money transfer notification and the recipient downloads the app to receive it. It’s perfect for peer payments.

The vibrant interface and speed make it a game-changer payment app.

2. PayPal

PayPal is the OG payment gateway that most people will already be familiar with. That is the great advantage of PayPal. It’s not new to anyone. Most people will have an account and they have a variety of payment methods you can use.

Through PayPal, clients can pay with major credit cards, debit cards, bank accounts and even PayPal credit.

3. Google Pay

Google Pay is an awesome way of accepting payments because it is user-friendly across platforms. Apple Pay is great but it is only available for iOS users. Whereas Android, iOS and browser users can make mobile payments through Google Pay.

The interface is clean and simple. Payments are fast and your details are secure.

Key Takeaways

If you want to be paid faster than ever before, you might consider mobile payments! Secure, fast and dependable, mobile payment applications could be a great accessible addition to the way you take payment.

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