Online payment apps provide digital payment services that are completed via devices like smartphones, laptops, etc. The idea of paying with cash, a check, or using NEFT, is becoming dated. The mobile wallet payment method or mobile money transfer, a modern payment method, has gained wide popularity across the world. Mobile payment has been steadily accepted and used in a variety of ways all around the world. These include utility payments like APSPDCL electricity bill payments, money transfers, online and offline purchases, EMI payments etc.
The first patent specifically defining a “Mobile Payment System” was submitted back in 2000. The system has also been utilized in some developing nations to provide financial services to the underbanked or unbanked. They used to be primarily employed for small payments. But with the wide acceptance of these apps as time progressed, people are now able to transfer considerably large amounts too.
How do payment apps work
Before completing any transaction, money can be added to these online payment apps, or in other circumstances, a person’s bank account can be connected to the app to carry out the transaction, or payments can be made via debit cards, credit cards, UPI, etc. Apps for payments will include a software and data component. Safe and fair online payment systems are an important aspect. The software assists in providing protection and encryption for private data as well as carrying out transactions.
Mobile Payment types
There are five main mobile payment models, and they are :
- Card-based transactions
- Mobile Wallets
- NFC Contactless Payments (Near Field Communication)
- Carrier Billing (Premium SMS or direct carrier billing)
- Direct bank transfers using real-time transactions between the payer and recipient accounts
Benefits of these payment apps
- The main benefit of using a payment app is client convenience, as they will be able to pay with their mobile phones instantaneously by scanning a QR code or using contactless payments.
- One can easily use their phones to make transactions rather than cash or cheques, leaving those items at home. APSPDCL bill payments or any other payments done with mobile wallets online payment apps are typically quicker and simpler than those made by swiping or inserting cards.
A safe method of payment
- In-store purchases can also be made using a mobile phone, thanks to online payment apps like MobiKwik.
- To reduce the risk to the personal data of the users, these apps typically use encryption or protected code.
- In the case of card payments, Instead of storing your actual card number on the phone or with the merchant, the program will mask it by allocating a random number or symbol to it for each purchase.
- If a hacker attempts to access your device or a storage device, they can only obtain meaningless information. E-Wallets provide excellent protection for consumers’ financial information.
- To increase the scope of the monitoring, the user can add a fingerprint, PIN, or password as an extra layer of protection for the phone.
Increases cash flow
The market’s cash flow has improved due to the advent of e-wallets. To begin with, most customers prefer utilizing debit or credit cards compared to normal cash payments when paying their bills. In addition, most mobile payment processors take less than three days to transfer money to a business account.
A quicker method of payment
- Users simply need to tap, pay, and go on.
- The use of e-payments has increased significantly all over the world as a result of the rise in mobile phone usage.
- For an NFC payment, Simply waving or tapping the smartphone before an NFC-compatible terminal is all necessary to authorize the transaction.
- This will help you carry out a contactless transaction faster than using a debit or credit card because they must be placed into the device or swiped.
Discounts, bonuses, and coupons
Users who utilize payment apps like MobiKwik and e-wallets receive coupons, cashback, discounts, incentives, loyalty points, and other benefits. Digital wallet solutions will partner with several businesses that give offers, rewards, and discounts for utilizing payment apps. E-wallets create the perfect setting to offer consumers looking for deals with a wide range of advantages and assist mobile payment apps to stand out in the industry.
Online payment apps have now become a part of the lives of many people. They have revolutionized the payment process and changed how people view financials. The fact that a single payment app can provide varieties of online payment methods in itself is astonishing.