We see it all around us; people are at a store, about to pay for something, and they’re pulling out cash, credit cards, and now phones! Mobile payments have been increasing year by year. Will mobile payments be the next big thing in our society? To make that assumption we need to first describe what mobile pay is. According to Investopedia, Mobile Payment is: “Money rendered for a product or service through a portable electronic device such as a cell phone, smartphone or PDA.”(Source).
Many businesses have accepted this form of payment and an increasing number of people have started using this method. This method of payment seems to be most useful when people are paying for their coffee or doughnuts in the morning. Since this new way of payment was introduced, there have been many apps created in order to promote that particular business. Companies that start accepting mobile payments are able to appeal to a much larger client base. Mobile payments have a huge impact on the marketing strategies of certain companies. This payment method is a powerful marketing tool for companies.
This new form of payment is enhancing convenience for costumers through technology-based loyalty programs. When downloading a business’ mobile app, the consumer is able to receive rewards and coupons for being loyal to that company. For example, one of the first of these was The Dunkin’ Donuts app, which was released in 2012 (Source). When you sign up with this app you are automatically part of the DD perks program. The app gives consumers opportunities to make purchases in advance, which allow you to pick up your item faster.
Some of the Pros Are:
• Fewer cards to carry around
As with any product, there will always be advantages and disadvantages. With this new innovative payment method people speculate as to how much better mobile payment is. For some the rewards they earn may not be worth the hassle or risk of this change.
Some of the Cons Are:
• Mobile payment is not available at all stores and restaurants
• For some, it may not be as simple to use as traditional payment methods
• Lose your phone, lose your wallet
• Safety concerns
There are a number of advantages and disadvantages to using this new technology for both businesses and consumers. As technology grows over time the millennials have increased their “power” in the world by being able to adapt to the new technology more quickly than previous generations. People willing to use this new form of payment may be changing the transaction process as we now know it. This “Future of payments” may be coming faster than we think.