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Should I or Shouldn't I? Mobile Payment Apps and How to Use Them
Category | Travel Tips
Published: 18/06/2018
| Updated: 04/05/2024
The General Fear About Financial Technology
Despite the convenience it offers, many consumers are hesitant to use online technology to manage their finances. This remains true no matter how safe a given technology has become. Many people are still hesitant to send money online for instance, despite the high level of digital security used by reputable firms. And even as we seem to inch closer and closer to a cashless society, many Brits remain uneasy about using their smartphones to make retail purchases. Even apps that offer something as innocuous as currency services can inspire security fears in a large segment of society, much less using a mobile payment app for everyday purchases. Some of these fears are well founded, but others can be overcome with a little care and knowledge. This will of course become easier with time, as the technology continues to improve and become more available. Let's have a look at the mobile payment app phenomenon.How Mobile Payment Systems Work
If you don't already know, a mobile payment system is a smartphone (or tablet) app that lets consumers execute financial transactions without using cash or credit\debit cards. With just a few taps, the money is deducted from your account and deposited into the merchant's. Mobile payment apps function using a technology called Near Field Communication or NFC. Essentially, NFC allows two devices to exchange small bits of data when they're within a few centimeters of one another. When makings payments, the user unlocks the app with a thumbprint and holds it up to the merchant's NFC receiver. In some ways, a payment app is like a credit/debit card that doesn't require the physical card. Once the transaction is finished, the app deducts the funds from whatever account you've linked to it -- either your debit/credit card or an account that's only used for the specific app. And just like your credit/debit card, the app keeps track of your purchases, so you'll always know where your money goes. Lastly, payment apps allow you to integrate your loyalty cards and vouchers for each separate vendor. This means convenience and less clutter in your purse or wallet. Unfortunately however, both parties -- consumer and merchant-- must be equipped with NFC technology. Most older phones (on both Android and IOS) are not equipped with the necessary technology. And although their numbers are growing, especially among national chains, most retail stores do not have NFC capabilities either. But bear in mind that the technology involved is constantly evolving. Some companies offer non-NFC options as well.An Increasing Variety of Options
There was a time when only heavy hitter corporations like Google, Apple, and PayPal offered mobile payment apps. This has changed in recent years however, as literally dozens of smaller companies now offer them, along with many major banking institutions. The following list is far from exhaustive, but here are some of the most popular options. But remember -- it's absolutely crucial that you do detailed research before deciding whether or not to use these or any mobile payment apps.- Android Play PayPal Mobile Apple Passbook Lemon Wallet Square Wallet Dwolla Samsung Pay
