Are Mobile Payments Making Traditional Payment Platforms Redundant?

Are Mobile Payments Making Traditional Payment Platforms Redundant?

The world is quickly moving away from being a cash-based society. Advances in technology have allowed for transformative improvements in payment platforms and the emergence of mobile payment methods.

How Do Mobile Payments Work?

Mobile payment technology allows users to pay with the help of their smartphones. The trend started with the introduction of QR codes, which are still a popular method of payment at check-out desks.

The market then shifted to near-field communication (NFC), which made paying at retail stores and grocery shops even easier. With NFC, users just have to touch their mobile devices to a compatible NFC device.

When the phone comes within range of an NFC device, it quickly sends secure payment information to the vendor and completes the purchase. This is hardware-based technology and requires both the vendor and the user to have an NFC-friendly device.

How Mobile Payment Systems Are Made Safe

The basis of these secure payment platforms is the tokenization system which assigns a unique identity to each set of identifiable information. This information may include the user’s name, primary account number (PAN), and expiration date of their card.

Assigning a unique identity to each set of data reduces the risk of privacy breaches. NFC devices also prevent the chance of machines being tampered with to collect information about users and the business itself.

semi-integrated payment systems

Tokenization is also used in credit and debit card payment systems to read the data at point of sale (POS), replacing it with a unique randomly generated code before the payment can reach the vendor. This ensures that only the vendor receives the payment.

How Do Mobile Payment Systems Differ From Traditional Payments?

Mobile payments are easier, and do not require you to carry a plastic card all the time. Moreover, they leave no trace of identifiable information for hackers to track down.

During the transaction, the token is directly transferred to the merchant’s mobile device through appropriate and safe channels—without an actual account being attached to the transaction. This leaves no chances for hackers or thieves to interfere with the payment or enter the database.

Mobile payment systems in the mainstream market are increasing because of their improved security and accessibility. Notable companies like Apple have introduced NFC and mobile payment systems in their latest iPhones to make the technology more accessible.

Here at UIC World, we specialize in developing secure payment solutions that are tailored to fulfill our client’s business goals and requirements.

By offering efficient EV charging payment, semi-integrated payment systems, cashless payment solutions and much more, we intend to make all your transactions hassle-free. Give us a call today at +510-438-6799.

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