The Importance of Mobile Payments for Your Business

how mobile payments work

In recent years we’ve seen a rise in the popularity and use of digital wallets and mobile payments when it comes to consumer purchases across a number of industries. From large retail stores to small independent companies, the ability to accept mobile payments made via a customer’s digital wallet is now vital to ensuring your business is able to cater to all payment methods. Before you introduce this new technology to your POS system, it is important to understand how this payment method works, and how a reliable company like Millennium Bankcard can keep you protected from any issues that may occur in the future, such as fraud and secure information breaches.

How Mobile Payments Work?

By now, most retail business owners are familiar with the new ways credit card companies, banks and third-party financial institutions like PayPal let consumers manage their money and make purchases in stores and online. Technology like Near Field Communication (NFC) is now commonplace in most POS systems and devices, which is part of the reason why digital wallets found on a person’s smartphone are beginning to increase in use and popularity. A digital wallet essentially stores a consumer’s bank account and/or credit card information on that person’s smartphone, where they can access it to make in-store purchases using their phone. The digital wallet saves a person from having to search through their wallet for the right card, instead of letting them easily select their preferred method of payment right from their phone, which communicates directly with a store’s POS system to complete the purchase.

There are many examples of mobile payment services already on the market for a consumer to choose from. Launched in 2016, Apple Pay is one of the most popular digital wallet services, but there are many others such as Android Pay and Google Wallet that allow purchases to be made via smartphones. Financial institutions like MasterCard and PayPal have also created digital wallet services, all of which work in a relatively similar way using NFC to securely transfer purchase info to a retailer at the Point of Sale.

Security

The initial reluctance to embrace digital wallet and mobile payment services among consumers had a lot to do with concerns over security. For the most part, people were afraid of the thought of having their phones hacked for their financial information. Some consumers were even reluctant to store their bank and credit info on their phones for fear of losing the phone itself. While it is true that new technologies can sometimes be a cause for concern, it may surprise you to learn that mobile payments made via a digital wallet service are more secure than any other electronic payment method in existence!

As most business owners who accept online digital payments are aware, any time bank information is shared digitally it is always encrypted. The same goes for the information transferred during a mobile payment using NFC. At any given point where data is transferred, it is totally encrypted and secure from hackers. Furthermore, many mobile payment services will add an extra layer of protection by tokenizing the pertinent bank info used for purchase. This means that even if a hacker managed to get hold of the data as it is in transit, they would see a token ID number used to represent the credit card info. This not only protects the consumer, it also protects your business from being the victim of fraud.

Business owners can expect an additional layer of security to protect themselves and their customers using digital wallets when they take advantage of the mobile payment solutions from Millennium Bankcard. We provide additional protection against fraud that goes beyond the standard fraud protection from your financial institution. We have a great deal of experience when it comes to working with digital wallet providers, and our friendly customer service agents will be available at all times to discuss any issues or concerns you may have.

Whether you operate a large-scale retail business, or are just getting started with your new small company, Millennium Bankcard can help you stay ahead of the game when it comes to new POS technologies and keeping your payments secure and reliable. Be sure to contact us today to find out more about our mobile payment services, as well as our other top quality merchant account services.