Factors That Influence The Development Of Mobile Payments

As technology advances over the years, we have experienced and noticed that the trend in how payment are received have shift tremendously. Twenty years ago, check was the preferred way of payment. In today’s world, more and more payments are done by credit cards. Credit card transactions are instance that provides a faster payment method.

The future of payments is current shifting to another path with how technology is changing and is currently modifying how we process our payments and how we store data. It is going away from low-tech and paper based tools, expensive and bulky registers, and physical card swipes. And it is introducing and renovating online commerce and online payment. This is happening due to the decrease of money supply and checks in the current market because people are starting to pay more and more there bills online. As the economy improces and corporations and business gets larger they have started a large-scale implementation of processors in electronic payment technology in their business ands services. Also, credit and debit are growing amongst consumers and it has been the highest that it has even been in history.

Mobility has brought a huge difference in the IT industry. Most companies are dependent on doing business via mobile devices. Most individuals with mobile phones, this is their only connection to information and entertainment.(class notes) Every company is now looking to emerge on top by using the latest mobility features that are not only efficient, but also effective. Mobility will allow for easy access of company documentation, easy collaboration and communication between teams both here and also offshore. In this paper today I will write about Mobile payments and how it affects retail competitiveness and operations.

In many developing countries it's common for a person to have a mobile phone but not a bank account. In fact, more than 1 billion people fit this description, and the number is only likely to increase. To that end, many companies are considering how to give residents access to banking services via their handsets. The GSM Association predicts that by 2012, nearly 300 million of the previously "unbanked" will be using some form of mobile banking.

Although major retailers have had credit card breaches, which devastated consumer trust in credit, Mobile payment systems stay efficient, but risk personal and financial data fraud similar to plastic credit card usage theft. Patrons fear merchants can track your shopping habits, location and financial records using a mobile GPS signal. Nevertheless, worries that someone can steal their information when sent wirelessly therefore consumer confidence remains low. Thorough safety measures will help give customers composure and regain assurance. (Busby, 2014) (Sapienza, 2013)

For many years the banking and financial services industry has been developing new methods of cash payments. One of these methods is generally referred to as “cyber payments”. A significant feature of the new cyber payments is that they include a new form of currency. Cyber payments also comprise other payment components, which emulate current payment systems. For example, already in use are cyber-cheques, cyber-credit and cyber debit. Cyber-currency, therefore, includes the attributes of conventional currency, which are: a store of value; a medium of exchange; and ease of use. However, it has one very important added feature – almost instant electronic transfers from point to point[ Available at http://www1.worldbank.org/finance/assets/images/01-chap01-f.qxd.pdf (last visited on 02/03/2016)

. Mobile payment users >190 MM in2012, which is over3 % of total mobile users worldwide a level considered as "mainstream”

Many financial institutions across the world have adapted to the change towards the cashless society by implementing electronic funds transfer via automated teller machines (ATM’s) and of late, the internet. By having a simple plastic card, society could completely eliminate the need for cash. The benefits range from the end user through to the government and the

According to the GMSA, approximately 255 mobile money services were operating across 89 countries in 2014. Sub-Saharan Africa is the region where mobile money services are most widely adopted, followed by Southeast Asia and Latin America. By enabling users to transfer money to each other and make payments directly to businesses and service providers, M-Pesa cuts down on corruption by reducing the need to operate in a cash-only economy. As a result, M-Pesa empowers individuals and supports entrepreneurial creativity in a less constrained financial marketplace. M-Pesa has proven that mobile payments can work in Africa, and other developing regions of the

In this scenario, consumers are recognized by the signals they emit, most likely from their wireless phones or PDAs, and they can purchase goods and services from vending machines and businesses without having to use a checkbook, credit card or cash. But making the wireless wallet a reality will require an evolution of both technology and consumer attitudes that is still far in the distance. Moreover, at the commerce phase, in which consumers should realize that using wireless devices to purchase real goods in the physical world does not necessarily deliver those goods to their wireless device. It will be a challenge to convince consumers to leave their credit cards at home and let their phones do the purchasing. In addition to this, consumers will need easy-to-carry wireless devices that they will always have with them, and terminals will have to be available at stores or in vending machines. Both of these devices must have the necessary infrastructure to enable transactions. Last, and most difficult, there must be a worldwide standards initiatives. However, the most important aspect is to explain to the consumers, what is their bennefit to use the services of m-commerce, instead of the brick-and-mortal

Citibank had designed its own mobile banking software that can be downloaded and installed on more than 100 handsets over any carrier’s network

Mobiles are like a money wallet, credit cards, loyalty cards, coupons offering a world of vast new services to all anywhere at anytime. People without a bank a/c can have their finances to be easily manageable through the smartphones and tabs.

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

Mobile payments are becoming an upcoming new trend when it comes to technology. Mobile payments allow its users to pay for their daily needs with their phone without having to carry cash, let alone, their wallets around. However, the United States has been delaying the adaptation of mobile payments due to the fact that many different retailers have developed their own form of mobile payments as opposed to a universal approach. While many countries in Europe and Asia have successfully adopted mobile payments, United States still are behind in the trend.

Banking cards includes a Debit/Credit/Cash/Travel card which offers enormous flexibility in daily usage. These cards provide consumers more security, convenience and control over their transactions. Payment cards help the people to purchase articles in stores, on the internet and over phone also. These cards are commonly linked with the bank accounts of the customer. And it provides two factors authentication system for securing the transactions. After demonetization, usage of card payments is increasing.