What Is a Mobile Payment?

Global Pay is the fastest, simplest way to start accepting online payments in Bangladesh. From signup to receiving real payments can take under 15 minutes. Seriously.

Understanding Mobile Payments

Many banks have recently adopted technology into their banking apps that allow customers to send money instantly to friends and family members directly from their bank accounts. Mobile payments are also made on site at stores by scanning a barcode on an app on your phone, accepting payments from convenience stores to large, multi-national retailers.

The cost of the purchase may be deducted from a pre-loaded value on the account associated with the particular store, or paid by credit or debit card. Payment information is encrypted during transmission, so it is thought of as being a safer payment method than paying with a debit or credit card.

Benefits of Mobile Payments

The most obvious benefit of mobile payments is the elimination of a physical wallet. Not reaching and pulling out cash not only saves time but is safer as well as nobody is able to see the contents of your wallet or purse.

Touch ID in the form of a fingerprint scan or PIN input makes mobile payments more secure than a physical credit card. Since individual security codes are generated by the mobile service for each transaction, this method of payment is significantly safer than using a physical card. Merchants will usually not check identification, so accepting mobile payments is a smart move for them as well, as they will not have to deal with fraudulent activity as much.

An additional benefit—though a minor one for most people—is that when you are with other people they are not able to tell what card you have. Users with low credit scores and credit cards with low limits and high APRs might not want, say, an interviewer or date to know these things, and mobile payments offer an additional level of personal privacy.