Mobile payment: Make your smartphone your wallet

The mobile phone is an evolving product the past decade. It has changed from a medium to make phone calls into a medium for data exchange and more interaction. The mobile phone is becoming one of the most important devices for the people nowadays. The mobile phone is getting more developed with more and more applications and options. Mobile phones allow us access to mobile banking with applications and mobile phones can even allow to pay by phone in case you forgot your wallet for example. This way of paying is a growing development and its popularity is also increasing among customers. Mobile phones are actually becoming some sort of ATM-machines. What can we expect from a development like this?
Payment methods has already been developed a couple of times. It started with cash payments, hereafter the payment cards were developed due to its ease of use and for more security. Nowadays, the technology has come to a point that people are able to make payments by the smartphone. As mentioned, mobile phones can make it possible for the people to use their phone to pay for transactions, also called: ‘Contactless payments’. The mobile phone becomes a device which is able to scan the code and the transaction is completed. Google and apple both already have developed applications to make this way of payments possible.
Mobile payments do have a couple of benefits in comparison with the traditional ways of making payments.
1. Anti-skimming: Payment cards can be skimmed, which is not the case for mobile payments.
2. Time saving: Just with one click on your smartphone and the transaction is completed, which is faster than using cash or payment cards.
3. Simplicity: Just a click on the home button is enough to complete the transaction.
Beside the benefits there are also two major concerns: compatibility and security. While traditional payment methods are globally accepted is the mobile payment method quite new and also not available everywhere. A payment card is accepted and is nowadays almost equal to cash. It will be a challenge to get the smartphone on that same level. The other concern is its security. Due to its ease of use it is also a dangerous method in case of potential threats. What if your smartphone is stolen or if you lose your smartphone? are examples of questions that can confirm the potential threat for this technology.
I think it is a development that will absolutely grow in its popularity. Especially due to the simplicity and the possibility to complete the transaction within a couple of seconds. I think that is possible that mobile payment will be on the same level as the traditional ways of payment, like cash or credit cards. What also will be an interesting development is if the potential threats will have a big impact on mobile payment. Security is an important issue, especially for money transactions and security is also the reason that mobile payment is not as popular as it could be in the future.