Payments through mobile payment apps have been gaining popularity day by day, because of the convenience, speed, and security. But paper receipts persist because of the legal and compliance requirements; consumer preferences; technological and accessibility barriers; and marketing and advertisement needs.
Mobile Payment can be defined as the payment of financial expenses that involve the usage of some mobile device, such as a smartphone, tablet, or smartwatch. Mobile Payment allows people to purchase anything, transfer money, and even pay bills, without worrying about physical cash, checks, or debit/credit cards.
How Mobile Payments Work?
Payments through mobile payment apps have been gaining popularity day by day, because of the convenience, speed, and security. Following is the complete detail of how this mobile payment works.
Downloading and Installation of Mobile Payment APP
First of all, download and install any mobile payment app on your mobile device. Because the whole of the transactional process is done within the payment app.
Set up between Payment APP and Bank Account
After signing in to your payment app, link your bank account or debit card to your payment app. So that you do not need to repeat the process again and again whenever you need to do a mobile transaction.
Transactional Process
During the transactional process through the mobile payment app, users can complete their transactions through different technologies such as Near Field Communication (NFC), QR codes, or even via a mobile app or SMS-based system.
Payment Confirmation
Mobile Transactions are often confirmed digitally in the form of email, SMS, or digital receipts generated within the payment app.
Advantages of Mobile Payments
Transactions through the Mobile payment app offer the following advantages.
Convenience
Mobile Payment eliminates the need to carry cash or cards from the lives of its users. Moreover, it supports quick transactions without wasting time.
Security
Mobile payment ensures enough security for users because it supports advanced encryption, tokenization, and biometric authentication.
Moreover, the users do not need to share card details with merchants. In this way, the mobile payment secures the consumers’ data.
Efficiency
By keeping the whole process streamlined between both consumer and merchant, mobile payment is best in its excellent efficiency.
Moreover, mobile payment apps can keep records of all transactions over a long time. And these records can easily be accessed at any time anywhere, you just have an internet connection.
Disadvantages of Using Mobile Payments
Following are some disadvantages of using Mobile payments.
Dependency on Technology
The biggest disadvantage of using mobile payment is that the whole process is entirely dependent on the technology. It requires a smartphone or some other compatible device and internet access to function properly. Moreover, transactions can be failed in case of any technical or outage issues.
Security Concerns
In terms of security, your login details always remain at the risk of hacking. So, be sure to set up difficult and unclue login details so that no one can easily access your account. Moreover, always give your details correctly and carefully. So that, in case of hacking, your account can easily be recovered.
Why Paper Receipts Still Persist?
Although the Mobile Payment system has revolutionized, however, paper receipts persist because of the following reasons.
Legal and Compliance Requirements
Paper receipts persist in fulfilling the legal and compliance requirements. Because many government and regulatory bodies demand that businesses provide the receipts for tax compliance, accounting, and auditing.
Moreover, in some jurisdictions, paper receipts serve as an official legal document to prove a transaction.
Consumers Preferences
Most people still prefer paper receipts because they think that it is a long-standing method of record-keeping
Moreover, everyone can easily access the paper receipt without concern about technical failures or hacking of mobile payment accounts.
Technological and Accessibility Barriers
Unfamiliarity with technology is also a great barrier in the path of mobile payments. Because not everyone has access to digital mobile devices and the internet. So, not everyone is ready to adopt mobile payment.
Moreover, not everyone has an email address and also some are reluctant to provide their personal information to the app.
Marketing and Advertisement Needs
For marketing and advertisement purposes, some businesses are also not ready to adopt a mobile payment system. Because through paper receipts they advertise themselves by printing coupons, surveys, and special offers.
Conclusion
In short, although mobile payment systems have revolutionized and gained more rise over time. But paper receipts still persist in the future because not all consumers of all ages are ready to adopt an advanced technological mobile payment system.