Mobile payment technology may enhance consumers' financial options
May 16, 2013

Small- and medium-sized enterprises that accept mobile credit card payments are set to boost customer satisfaction in the future as the number of consumers utilizing the purchasing method increases. SME payment integration already drives sales, but new research from the United Kingdom found the advantages of mobile payments will only rise for customers and companies utilizing the software. 

Benefits for consumers without bank accounts 
Resent research published by U.K.-based Friends Provident Foundation stated mobile payments will offer customers who prefer not to utilize bank accounts a secure purchasing platform. According to the report, consumers without bank accounts may benefit from using mobile devices to store their financial information instead of reaching for cash at the point of sale.

The report highlighted various ways mobile payment services may advance, one of which is becoming an alternative to a bank account for consumers. Mobile payments may evolve to include cards with contactless technology or portable wallets that offer the security of plastic without requiring users to go through an issuer. While many of these benefits already exist, the potential of mobile payments will seem limitless for consumers and SMEs. 

Currently, mobile payments are among several point of sale transaction options. However, the technology is quickly spreading among consumers and SMEs, and it may start to take on similar elements of traditional bank accounts. Many consumers prefer the security of plastic but may not have access to a bank account or financial services, forcing them to carry cash.

According to the report, consumers who do not to have a bank account often make the choice to use cash because they fear not having control over budgeting incurring unexpected charges if they open a bank account. Some of these people also utilize prepaid cards, but the report suggested mobile payments could offer them an additional alternative to traditional plastic.

Portable devices, such as tablets and smartphones, are decreasing in price. As mobile technology becomes more affordable for consumers and SMEs, it may become an option for those who choose not to have a traditional bank account. The mobile payments industry continues to evolve and companies that accept debit and credit card payments may see significant changes in the near future.

Nexus: G-WEBCD4