
Common Types of Mobile Payment You Should Know of
CIO Review APAC | Wednesday, May 26, 2021

The number of mobile wallet users is increasing as governments worldwide are pushing economies to go cashless to bring transparency and economic growth.
FREMONT, CA :Mobile and internet usage is increasing, which is boosting the growth of mobile payment technology. Most of the businesses worldwide, regardless of size, have initiated accepting mobile payments. The increasing use of Mobile Payment Technology in commercial transactions has transformed the way people purchase and from where.
What are Mobile Payments?
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Mobile payments are frequently related to digital wallets, also known as e-wallets. It is very close to the actual definition of mobile payment. Mobile payment is a broad concept that encompasses payments or fund transfers made or received through mobile devices, digital wallet apps, mobile banking applications, and online payments.
E-wallets, on the other hand, are smartphone applications that can store and maintain virtual money and enable payments for online and offline services using wallet money, bank accounts, and cards. These days, e-wallets also offer users services such as booking travel tickets, movie tickets, mobile recharges, and so on.
How do Mobile Payments work?
Mobile payments can be made both online and in a physical store. Making an online payment can be used to buy goods or services, or it can be used to transfer money to someone. The user can transfer money online by using a digital wallet, banking app, or USSD payments.
To enable payments at physical stores, digital wallet applications employ NFC or QR code technology, allowing users to make contactless payments.
Type of Mobile Payments
Mobile payments are classified into several types based on their usage and methods. Here are a few of the most popular:
Digital Wallets
Mobile phones, tablets, and computers can all be used to access digital wallets. Online payments are made using these mobile payment technologies. Digital wallets collect the user's bank account and credit card information in the application and help the user to make payments using those cards and accounts.
Mobile Wallets
Mobile wallets work in the same way as digital wallets, but the app is only available for smartphones. These wallets can be used to make payments for online and in-store purchases. Customers have a sense of control over their checkout process with mobile wallets because they start the transactions and mode of payment.
USSD based Payments
The payment method based on USSD has increased in popularity in developing countries. The fact that USSD payments can be obtained from any cellular phone is the main reason for their popularity in developing countries. Generally, users enter a unique USSD code that begins with an asterisk and ends with a hash.
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