The technology that took its own time to progress over the past few years now seems to be gaining traction and popularity amongst retailers and consumers. The eco-system is falling into place as successful partnerships are being formed by technology giants, banks and businesses to ensure global acceptance of mobile payment systems.
This innovative technology of Near Field Communication (NFC) enables consumers to make payments by tapping their smartphone on a contactless payment terminal at a participating store – to put it simply, the time for card-less and a cashless transaction is here. As NFC takes swift and long strides towards becoming more and more user friendly, an increasing number of customers are jumping onto this bandwagon.
Payment convenience for consumers
The convenience of making payments using mobile devices is driving the consumers and retailers to accept this technology with enthusiasm. This system sets you free from the hassle of carrying a number of plastics in your wallet like credit cards, debit cards, loyalty cards etc. Not having the pressure to visit an ATM before going shopping is an added bonus. All the details of your cards organised in one device makes online shopping faster as well.
Retailers to install mobile wallet system
The growing mobile payment market promises to cut transaction costs and increase customer loyalty. However, retailers must navigate a host of challenges like upgrading to point of sale (PoS), ensuring data security and, most importantly, encouraging consumers to adopt this form of payment.
According to Reuters, British supermarket Tesco and France’s Auchan hope their “digital wallets” app, which allow users to pay with their smartphones rather than through cash or cards, will also give them more comprehensive data about customers’ shopping habits which will help with targeted advertising.
To attract customers, retailers also have the choice of linking their mobile payment system to their loyalty programs and reward points.
Mobile payment systems and commerce
According to Gartner, the global market for mobile payment systems is expected to grow about threefold by 2017, and show approximately $721 billion worth of transactions with more than 450 million users.
Financial institutions and technology firms are pouring billions of dollars into the development of mobile payment systems and leading retailers like Walmart and Target Corporation are also accepting this new development.
Luxcode’s comprehensive application allows the customers not only to process payments, but also to avail discounts, gifts and loyalty rewards. A technology that is only gaining traction now has already been perfected by Luxcode, and has been available to consumers for use for many months. NFC may be the perfect answer for a number of retailers looking to gain from new technologies.