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 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 her smartphone to make a fraudulent transaction. This is something that is inherent with all contactless payment methods, and unauthorized use can be avoided by utilizing some simple security features.
Direct Mobile Billing
Direct mobile billing is the preferred method for payments in Asia. It involved paying for goods 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 consumer’s mobile account to be credited.
Cloud-Based Mobile Payments
Cloud payments involve 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 utilizing this method.
While convenient, cloud computing servers’ security leaks can open your payment details to fraud. This is relatively uncommon, but it is certainly something that needs to be considered 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 make 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 include the bank’s own security protections, make the transactions incredibly secure. Digital tokens also ensure that the consumer’s bank details are never revealed, making it as secure as direct mobile billing.
Four things you can do when mobile banking
Many people are turning to mobile banking as a way to keep track of their finances, monitor their spending, and monitor their savings. Mobile banking is an incredibly useful tool for managing your money, and it’s no wonder that so many people are turning to it. In this blog post, we’ll explore four things you can do when mobile banking to make sure your finances are in order and ensure that you have access to all the tools you need.
1. Transfer Funds Between Accounts
One of the best things about mobile banking is that you can easily transfer funds between accounts. This means that if you have multiple bank accounts, such as a checking account and a savings account, then you can quickly move money between them with just a few clicks. This makes it easy to save money or pay off debts quickly without having to visit the bank in person or wait for checks to clear. You can even set up automatic transfers from one account to another on a regular basis so that you never miss a payment or forget to save money each month.
2. Pay Bills On Time
Another great feature of mobile banking is the ability to pay bills on time without ever leaving your home or office. With most banks offering bill pay options through their apps, it’s easy to set up recurring payments for your rent or mortgage, utility bills, car payments, and more. You can also use mobile banking apps to view upcoming bills and make sure they’re paid before they become due dates — this will help keep your credit score in good standing!
3. Monitor Your Spending Habits
Mobile banking also comes with budgeting tools that allow you to easily view where your money is going each month and identify areas where you may be overspending or under-saving. These tools allow you to see what categories of spending are taking up the most of your income and adjust accordingly if needed — which could help cut costs on unnecessary items or increase savings towards retirement goals!
4. Receive Alerts When Transactions Occur
Finally, another great thing about mobile banking is that some banks offer alerts when transactions occur on an account (such as when something has been purchased). This helps protect against fraudulent activity by alerting customers right away if there’s any suspicious activity taking place on their accounts — so they can address it immediately instead of waiting until later when more damage may have been done!
Mobile banking offers numerous benefits for those who want greater control over their finances while also avoiding time-consuming trips to the bank every time they need something done with their accounts! With features such as transferring funds between accounts, paying bills on time, monitoring spending habits, and getting alerts when transactions occur — there’s no reason why anyone should put off signing up for a mobile banking app today!