With the advancement in technology, the modes of payment have transformed drastically from the traditional physical money exchange.
FREMONT, CA: The internet pioneered traditional commerce in the 1990s, followed by e-commerce a few years later. This ground-breaking transaction method enabled retailers to sell products in-store and reach a broader audience, both locally and globally, with a more comprehensive product offering. Along with e-commerce, the smartphone revolution enabled sellers to leverage mobile devices as an additional tool for business growth. Thus, m-commerce is a significant area of focus for the global e-commerce industry today.
Everyday shoppers worldwide opt to pay for their purchases with their mobile devices rather than their wallets' cash and credit cards. Local payments made via mobile devices are experiencing rapid growth worldwide, with no signs of slowing. This growth is being fuelled by improved technology, increased connectivity, and overall convenience.
Below are the different types of mobile commerce commonly used by shoppers across the globe.
Mobile point of sale: Increasingly popular worldwide, mobile point of sale replaces a fixed POS terminal with a phone or tablet and utilises specialised hardware to accept credit or debit card payments.
Remote mobile payments: Whether individuals purchase through an app like Amazon or a website like Nike.com, they make a remote mobile payment.
Mobile proximity payments: They are similar to mobile point-of-sale transactions in that they occur at a point of sale where shoppers pay with a mobile device rather than a credit card or cash. These transactions are particularly convenient for shoppers because they can be completed with just a simple wave, tap, or QR code scan from a mobile device.
Below are the various types of mobile payment apps shoppers are carrying across the globe.
As more shoppers make purchases using their phones, they are reaching for their pocketbooks less frequently. This trend has resulted in the rise of digital wallets as a preferred local payment method for both remote and proximity mobile payments. Much like traditional wallets, mobile wallets come in various shapes and sizes, each with its own unique set of features and benefits. There are two categories of digital wallets available today, both gaining popularity worldwide: closed-loop wallets and open-loop wallets.
Closed-loop wallets: Anyone who purchases their morning coffee through a particular coffee shop app uses a closed-loop wallet. Closed-loop wallets are a popular way for shoppers to pay for items only at a specific store. Retailers offer them to increase loyalty, offer discounts, and learn more about their shoppers.
Open-loop wallets: This type of digital wallet functions more like a traditional wallet, storing bank and credit card information and allowing shoppers to use it anywhere credit or debit cards are accepted.