Posted in: Money Saving Tips
Mobile banking reached new heights in 2013, accounting for more than $600bn in payments. The market share has increased exponentially over the last 15 years and is quickly becoming the preferred method for banking. Mobile banking offers consumers convenience but is also being lauded for security features that are helping stamp out credit fraud.
Amongst the new technologies offering consumers incredible choice and versatility are near field communications, predicted to account for ½ of transactions over the coming years. With so many new forms of financial communication flooding the market, it can be difficult to decide which methods to take advantage of.
This guide contains all the information on the new forms of mobile payment that have been developed and how they can affect your financial management.
Near Field Communication
Near field communication is one of the latest innovations, and examples can be seen on many modern smartphones. The technology is rather simple: a chip is activated by the close proximity of another chip. Once they are connected small amounts of data can be transferred between the two, such as financial information for transactions, and an exchange takes place. It is an incredibly efficient and convenient system that is gaining traction in the modern consumer society.
While NFC is becoming increasingly popular, predicted to one day overtake contactless debit/credit cards as the preferred payment method, there are many different companies offering competing services and not all are yet accepted nationwide. Also, there are some security creases that are slowly being ironed out. Currently, without adequate security methods in place, anyone can potentially use your smartphone to make a fraudulent transaction. This is something that is inherent with all contactless payment methods, and unauthorised use can be avoided by utilising some simple security features.
Direct Mobile Billing
Direct mobile billing is the preferred method for payments in Asia. It involved paying for good using a mobile account. This is a fast and easy method for making transactions while avoiding banks and third-party banking companies.
As no registration or financial details are required, this method is seen as a very secure method. It usually involves inputting a pin code or password and this allows for the consumers mobile account to be credited.
Cloud Based Mobile Payments
Cloud payments involved online wallets. The cloud payment company pays a vendor with a set amount of funds and the consumer’s bank account is charged to recoup the losses. This is one of the most widely used payment methods, with companies such as eBay and Amazon utilising this method.
While convenient, security leaks from cloud computing servers can make your payment details open to fraud. This is relatively uncommon, but it is certainly something that needs to be taken into account when opting for this payment method.
Banking Apps: The Most Versatile of Payment Methods
Mobile banking apps are possibly the most versatile forms of financial management software available. Not only do they allow the consumer to view and makes changes to their bank account on their smartphone, but they also allow for fast and secure transactions over the internet.
Other forms of payment, such as NFC and mobile payments, are limited in that they can only process transactions, yet banking apps are evolving all the time to include more features, such as applying for overdrafts and loans –with the possibility of instant approval.
High street banks, such as Barclays, have decided to take advantage of this new innovation by signing deals with start-ups. By allowing consumers to check their bank balance before making a transaction and choose what bank account to use, the account holder remains in control of their finances throughout the transaction. Multiple levels of security, which includes the banks own security protections, make the transactions incredibly secure. Digital tokens also ensure that the consumers bank details are never revealed, making it as secure as direct mobile billing.