Today, technological advances are more relevant than ever, especially in the world of finance. Though the basic principle of using non-coin-based systems has been around for quite some time, it has only been in recent years that the technology to support those ideas has become so widely available. It seems certain, therefore, that the future of mobile bill payment technology is bright.
Also known as mobile money or mobile wallet, mobile bill payment technology allows individuals to make payments with their mobile phone rather than paying with a check, credit card or cash. Mobile bill payment is being adopted worldwide in a variety of ways and by the end of 2013 is expected to reach over $600 billion.
It makes sense that mobile bill payment is taking off; in today’s world of instant gratification, it seems obvious that instant financial transactions are going to be the next step. Reassuringly, this technology also affords consumers some security. Credit cards, debit cards and cash all have the disadvantage of being prone to theft or loss and while a mobile device may also be lost or stolen it can still help protect its owner’s financial accounts.
Advantages of mobile bill payment technology
Mobile bill payment technology has many advantages for both businesses and consumers. For consumers, it offers a convenient and easy way to pay for bills, services and goods with relatively little risk. For businesses, providing customers with yet another payment method can help to improve overall sales and increase customer loyalty.
Implementation is relatively inexpensive and there is no sophisticated technical knowledge for businesses to worry about. Consumers usually just have to download an app to their mobile device, which enables them to begin enjoying the benefits of the system almost instantly. In addition, mobile bill payment capability also gives the individual access to deals and offers and the ability to transfer funds easily. Often, the mobile wallet has cheaper fees than the average credit card interest rate.
Companies are able to accept payments away from their home base and reach a whole new world of customers. Mobile bill payment technology also enables them to effectively brand their image, engage in social marketing and enjoy considerable cost savings.
What’s next for mobile bill payment technologies?
In the past couple of decades online banking has become the norm. In fact online payments now account for a significant proportion of all online financial transactions, especially in developed markets where internet access is not an issue. This trend, which has already spiked among mobile phone users, is likely to continue migrating to the tablet market as the devices become more and more popular.
Industry experts estimate that approximately 200 million mobile users will be paying bills via their mobile devices by 2017. With tablets becoming an even more popular solution for both companies and consumers the interest in, and acceptance of, mobile banking and mobile bill pay is set to surge. In view of this advancement, businesses may have no other choice than to keep up with consumer demand for mobile payments.
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