An In-depth Study Of The Speedily Evolving Payment Method - Mobile Wallets

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An In-depth Study Of The Speedily Evolving
Payment Method - Mobile Wallets
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Right from the early stages of civilization, ways
of charging people in exchange for services or
goods have been evolving. Initially, the barter
system was used as a payment system. The
evolution of payment methods throughout the
history of mankind can be represented as
Barter system ? Coins ? Currency Notes ? Credit/
Debit Cards
Card payments have been prevalent for more than
years now. But with the speedily evolving mobile
wallet concept, cards would soon be a talk of the
past.
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Though there are several security concerns that
are raised by users for mobile wallets, our web
application development experts are pretty
optimistic about its onset. According to our
study, mobile wallets seem to be the one that
would succeed plastic currency.
Several users are sceptical about the security
of mobile wallets, but that was the same when the
credit/debit cards were introduced. People tend
to be slower in adapting to changes in payment
systems than their adaption rate to technological
advancements. say our mobile application
specialists while studying the market trends of
smartphone payment methods.
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The rolling out of Android Pay by Google and then
Apple following the lead by launching Apple
Pay marked the start of the era of mobile wallet
trends. With so many businesses already
including outsourcing mobile application
development in their expense planning for the
year 2018, it has become necessary for everyone
to know the journey of how mobile wallets evolved.
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Mobile Wallets - The Evolution
Phase - 1 The Inception
The idea of mobile payments was first implemented
through text messaging. This was first used by
some Coca-Cola vending machines in 1997. The
customer could send a text message to the vending
machine to set up the payment and then vend the
product. This slowly evolved and then there were
many services which were provided through text
messaging and the amount was then included in the
bill of the mobile carrier service that the
customer used.
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Phase - 2 The Exploration
Once the mobile wallet concept gained momentum,
several start-ups realised the true value of the
idea and started working on the idea of going
cashless. Several large companies took up the
challenge of exploring various strategies that
would drive customer adoption. QR codes helped
improve the functionality of the primitive mobile
wallets.
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Phase - 3 The Increasing Popularity
Once the Google Wallet, PayPal, and ISIS were
launched, the mobile wallet started getting
slowly accepted by people. Several high-scale
merchants like Wal-Mart, Kohls, etc. took up the
initiative and launched their own wallets. Then,
after NFC was integrated into m-wallets and that
interested mobile application development
specialists even more. Within that period,
Bitcoin, a cryptocurrency which was created in
2009 by an unknown person gained popularity and
the idea of blockchain was accepted worldwide.
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Phase - 4 Present Scenario
At present, Near Field Communication (NFC) has
been completely integrated into apps like Samsung
Pay, Google Pay and Apple Pay, payments have made
contactless payment methods quite popular. Though
these apps are still in implementation mode in
several countries, they have been successfully
implemented and well-received in the USA, China,
and the UK.
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The complete journey of the mobile wallet concept
can help one to clearly see the influence it
would have on future payment methods. Basically,
there are 3 types of mobile wallets that enable
quick payments directly through smartphones. The
classification will help business owners decide
the type of mobile wallet they need to integrate
into their mobile application development plans.
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Here is how all mobile wallets are classified
1. Open Payment This is the most flexible type
of mobile wallet that enables the user to buy
products as well as transfer funds and even make
cash withdrawals at ATMs. Android Pay, which was
recently renamed as Google Pay is one of the
platform offering open mobile wallet payment.
Apple Pay and Samsung Pay then followed the suit.
Example Google Pay, m-pesa developed by Vodafone
in partnership with ICICI Bank, etc.
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2. Closed Payment This is a payment system
generally used by eCommerce companies or business
set-ups where some amount of money is locked into
the eCommerce application. These kinds of wallets
have to be used specifically for the web
application where the purchase has to be made. In
case of cancellation of the purchase or return,
the refund amount is either locked with the
merchant in the form of a gift card or the refund
is processed into your bank account through net
banking. There are no options provided for cash
withdrawals, third party payments, or settlements.
Example Most eCommerce websites like Amazon,
Flipkart, Wal-Mart, etc.
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3. Semi-closed Payment The structure of
semi-closed payment wallet is somewhat similar to
the closed payment wallet. It also does not
permit cash withdrawal or redemption. The only
difference is that it permits the user to buy
products from merchants that have tied up with
the app for business and also transfer money to
the app users within the app.
Example Paytm, PayPal, freecharge, etc.
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All these wallet types are being constantly
improvised. Most of the wallets are not yet
internationally available. But, constant efforts
are being made by mobile app development
specialists to expand the horizons of all these
apps. Recently, Google launched an app named Tez
in partnership with the Axis Bank that enabled
UPI payments that enabled money transfer directly
into bank accounts.
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Conclusion
The concept of the mobile wallet is still in its
development mode. But the future of mobile
application development is sure to see a huge
impact of mobile wallets and contactless payments
over it. Some technology experts predict that
with the popularity of cryptocurrency and several
banks planning to adopt the blockchain system in
offering their banking services, mobile wallets
will gain a speedy popularity and soon will
become a necessity. Some experts even predict the
extinction of physical wallets within a decade or
two.
Originally Posted On- https//bit.ly/2JGjW79
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