How the money gets into the mobile
Simply holding the smart phone or smart watch over the payment terminal at the supermarket, confirming the payment with a click and the process is complete. Mobile payment offers clear benefits compared with awkwardly looking for cash. Despite this, the market shares of mobile payment processes are still at a comparably low level. Studies show that this finding applies not only to Germany, but that the situation in the USA is very similar. Many Asians are way ahead, in India and China especially many more people use their smart phone for money transfers. The entry of Google and Apple on the mobile payment market brings hope for change here in Germany. A good opportunity for me to take a closer look at the mobile payment landscape.
Usually, money transfers in smart phones or smart watches are usually made with what we call mobile wallets. Various digital payment methods or a credit balance can be stored in these mobile wallets, and they also enable other applications. These include functions such as authentication of the holder, but also couponing and loyalty programs or ticketing. The communication between the end device and the POS takes place via NFC, the mobile network or Bluetooth. These new technologies are mainly supported by a positive user experience. So they offer money transfers without media discontinuity and at the same time offer high security standards. Digital wallets integrate the payment process into the lifestyles and daily routines of consumers, and also accelerate the check out process at the POS. Due to the user-friendliness, there are already numerous solutions, and the most important providers to date are the Sparkasse and Volksbank banking networks, as well as Payback Pay, Postbank, Deutsche Bank and other providers.