History of Mobile Payments

Consumers are increasingly demanding new payment methods that do not rely on standard magnetic strip credit cards. The emergence of this demand is a direct result of online payment systems such as PayPal. The next logical step in the online payment system is to develop a payment system that can be used on mobile devices. In recent years, smartphone processing power and memory has increased dramatically, and the device can now fully manage the data required for payment processing. With the advent of the iPhone and the application market, the mobile phone has become a micro personal computer with multiple functions.

The first finance work completed using the mobile phone was mobile banking. Mobile banking is not standardized, but it can run across a variety of mobile devices and operating systems. Later on, shortly after confirming the balance of the bank with the mobile phone, remittance, and other account management, it became common. As part of mobile services, some banks also offer bill payment functions and online payments for checking accounts, debit cards or credit cards.

The next step in mobile payment is to turn mobile devices into virtual credit cards using NFC chips and standardized systems. Both Visa and MasterCard have announced a roadmap (called EMV) detailing how standardization will be implemented next fiscal year.

The mobile banking transaction is the start of the mobile payment system. However, after the mobile banking industry dominated, further development of mobile payment was affected by delays in development and late acceptance. Many applications have been developed to enable mobile payment and other incidental services, such as electronic payment and customer loyalty programs, but far from standardization. Applications differ if stores and situations are different. For example, you may need one app to complete a transaction and another app to track the purchase of a loyalty program.

Some mobile banking systems were developed by specific retailers and received strong customer support. Perhaps the biggest success of retailer-specific mobile payment is Starbucks mobile payment system. Since its launch in 2011, more than 26 million transactions have been completed and totaled $ 110 million by the end of the year. And with the recent announcement with Square, we are ready to keep pushing up mobile payment and mobile commerce

As you know, one of the big achievements of the company was recently welcoming Andy Kleitsch as Vice President of Products. Andy has long been successful in the development of various mobile commerce and payment applications. In just a few weeks of our team Andy helped shape the future vision of the storm market, while playing an important role in bringing strong 'Amazon' strength and organization to team culture. With Andy recently added, the team has worked hard to provide a comprehensive product roadmap to the public over the past few weeks. One thing I learned from the experience of establishing startup is that there are many external market forces that affect the overall itinerary of every company. This can affect changes, bring pivots and even change the business model.

There are many companies offering mobile payment applications. But the most popular are Apple Pay (Apple mobile payment solution), Android Pay (Google mobile payment solution), Samsung Pay (Samsung mobile payment solution). If you have the latest model for iOS or Android devices, you may support mobile payment apps. On the merchant side, Square offers a payment processing system and system that accepts mobile payment. Everything you need to accept Apple Pay, Android Pay, Samsung Pay is Square's mobile payment reader and your mobile device. (Click here to see if your device is compatible - there are most new iOS and Android models)

Mobile money transfers are made to others via your mobile device. Because each party needs the same mobile payment application to process the payment, mobile forwarding can also be referred to as "mobile to mobile" forwarding. As people carry increasingly less cash, inter-mobile transfers are becoming an increasingly attractive form of payment. According to a recent survey by Accenture Consulting, consumers show a high adoption rate for mobile to mobile transfers. Of the people surveyed, 46% said they are using mobile payment applications, 15% said they are paying regularly (at least once a week) 15%.