The internet has taken the world by storm in this era of the 21st century. Gone are the days when you had to physically go to the bank to either check your bank balance or make a financial transaction. Almost everything, especially in relation to everyday activities, is now conducted online. In this era of the 21st century, mobile phone apps have made most traditional activities obsolete. There are fitness apps which can check your blood pressure, temperature, the steps you take in a day, etc. But two of the greatest advancements in applications are mobile payment apps and mobile wallets (also known as digital wallets).
Difference between Mobile Payment Apps and Mobile Wallets
The primary disparity between a mobile payment app and mobile wallet is that the former is used by the customer to make transactions via online payment app while the latter is used to make payments at retail points such as shops, restaurants, etc.
Advantages to both Customers and Businesses of using Mobile Wallets
Mobile payment apps save customers the trouble of carrying credit and debit cards, and money, around them at all times. So, if you are a small business looking to grow then you need a mobile payment solution. Although, when these mobile payment apps were introduced tech experts were skeptical that they would be able to replace the traditional transaction systems. But worldwide, and especially in the United States of America and the United Arab Emirates, mobile payment apps are slowly overtaking card and cash transactions. Main reasons for this include majority of mobile payment app users being millennial, the requirement for a swift transaction system, a shift in lifestyle, and of course, advancement in technology. Mobile payment apps and mobile wallets are also safer in the sense that cash and credit/debit cards are not always safe when carried by people in tangible wallets. Mobile payment apps also help the user make transactions at shops, diners, etc., when they haven’t carried enough money with themselves.
There are many advantages for a small business to grow using mobile payment solutions. As mentioned earlier, mobile payment app usage is highest with the youth so small businesses will be able to capture this market. Secondly, it inspires customers to come back and avail your services again if your mobile payment solution is secure, swift, and flexible. Thirdly, you can obtain a lot of information about your customer after they have made a mobile payment. This data can be used to market your business better to consumers, by targeting ads in a superior way and also offering deals which are more user-specific. Lastly, small businesses can attract the largest number of consumers by increasing mobile payment security as safety is the major reason that users switch to mobile payments away from traditional methods of payment.
There are many advantages for a small business to grow using mobile payment solutions. As mentioned earlier, mobile payment app usage is highest with the youth so small businesses will be able to capture this market. Secondly, it inspires customers to come back and avail your services again if your mobile payment solution is secure, swift, and flexible. Thirdly, you can obtain a lot of information about your customer after they have made a mobile payment. This data can be used to market your business better to consumers, by targeting ads in a superior way and also offering deals which are more user-specific. Lastly, small businesses can attract the largest number of consumers by increasing mobile payment security as safety is the major reason that users switch to mobile payments away from traditional methods of payment.
How to Compare the Features of Mobile Payment Apps
- Fees: For each transaction on a mobile payment app, a fee is charged, so you should be able to compare rates charged by each app.
- Rewards: Even if one mobile app’s rate is higher than another one’s, it might not matter if the reward system is good. E.g., for each transaction on Samsung Pay, you gain 5 points, so after accumulating 2000 points you attain a $5 reward.
- Safety: Security is one of the main reasons why people switch to mobile apps instead of utilizing the traditional modes of payment. Not only should the app be well known among users, it should also have advanced safety features such as biometric identification, facial recognition, etc.
4 Mobile Payment Solutions to Grow Your Micro Businesses in the UAE
- AliPay: Along with the local and expat population of the UAE reveling in the usage of mobile payment apps, so are tourists. In 2017, there was a 41% rise in Chinese tourists in the Middle Eastern region. Chinese visitors opted to use AliPay instead of Apple Pay and Google Pay. As of 2019, AliPay has already overtaken popular applications like PayPal and Apple Pay in America. Alipay has its own escrow account which serves as a major advantage over its competitors. This allows customers the chance to examine the product that they have ordered and not verify payment until they are satisfied with what they have purchased. So, if you want your small business to appeal to residents and tourists alike then AliPay will be worth the investment.
- Google Pay: Google Pay fits much of the criteria for a mobile payment solution. The brand name is recognizable (Google is considered one of the Big Four tech firms along with Amazon, Apple, and Facebook), it is secure, and it also offers awesome deals after you’ve reached a payment threshold.
- Apple Pay: Compatible on Apple devices such as the iPhone, Mac, iPad, and Apple Watch, Apple Pay can digitize and substitute a credit card or debit card and PIN transaction to make NFC contactless payments. Similar to Google Pay, Apple Pay has brand recognition as the company is among the Big Four of technology. Dissimilar to Google Pay, Apple Pay has biometric security compatibility, making it one of the safest mobile payment apps out there. However, it also has the disadvantage of only being able to conduct transactions between users of Apple devices.
- Samsung Pay: Not only does Samsung Pay hail from an established company, it also works on Samsung’s non-mobile devices as well such as the Samsung Gear S3. Its reward system is also quite top-notch.