Innovation Radar

Mobile Payment: from a hesitant trend to standard

Mobile Payment comprises all applications which can make payments via a smartphone or wearable, such as a smartwatch. After a hesitant start, this form of payment is constantly gaining momentum, particularly in the retail sector. Many experts consider it to be the ultimate development in the field of digital payments.

70 percent of consumers want to use contactless payments

Until just a few years ago, your retail customers could only make payments using a debit card or in cash. Since 2007, in other words, since the development of the first smartphone, this has gradually changed. Since then, large IT corporations and a number of banks have tried to bring Mobile Payments to the masses. However, there are not yet any consistent standards.

In 2017, an online survey of over 1,000 Swiss people aged between 18 and 65 years showed that debit cards hold the top position for the most frequently used payment methods (37 percent), closely followed by cash (36 percent) and by credit cards (23 percent). The study was commissioned by the ZHAW (Zurich University of Applied Sciences), the University of St. Gallen, the industry association Swiss Payment Association, and the financial services providers Concardis and Six Payment Services.

Even though these figures initially suggest otherwise, contactless payment is on an upward trend in this country – over 70 percent of the respondents could envisage using more contactless payment solutions in the future. This will be determined by the fulfillment of basic requirements, for example, improved security and appropriate services for the resolution of user problems.

The payment process is generally designed so that your customer only requires a smartphone. He or she can then pay the open amount via the payment terminal at the cash desk by, for example, by scanning a QR code. The amount is then automatically debited from the stored bank account and credited to the recipient.

Benefits for customers and companies

The provision of a convenient payment method for your customers can lead to positive results and numerous business advantages. Do not be distracted by bias towards digital payment methods, instead incorporate them into your business and turn it into profit.

Mobile Payment offers your customers the following advantages:

  • quicker than using the standard debit card – no need to wait at the cash desk
  • convenient because no cash or additional debit cards are needed, just the smartphone – which everyone has on them anyway
  • expenditure control, as different useful apps are used to process the transaction which can also be used for recording and managing income and outcome

Mobile Payment offers you the following advantages:

  • you are always up-to-date as you are offering your customers a forward-looking service
  • you can process payments and bills quicker as the process has a leaner design
  • you can deploy your staff in the best way possible and thus increase efficiency and customer satisfaction
  • you have no additional fees and contracts

You see: the benefits of Mobile Payment at the customer cash desk cannot be underestimated. Your customers and staff are not forced to search in their purse or the cash register, to check the amounts and to worry about having change. Everything is processed quickly and digitally.

Security in and around your business is probably a hot topic for you. At the end of the day, maybe a cash register does not balance because no-one is above making errors at work. However, a far greater problem is the resulting suspicion and the lack of trust in the employees – this damages the working environment. Furthermore, handling large amounts of cash increases the security risk. Processing transactions using digital payment methods and, specifically, using Mobile Payment thus has a positive effect on security and the stress level in your working environment!

Mobile payment also important at gas terminals

Mobile Payment is not only used in traditional stores. The demand for mobile payment options is also increasing at gas terminals – particularly in the German market. In rural areas, gas stations are increasingly being converted into terminal stations and gas stations with stores being equipped with terminals for use at night. Therefore, the availability of NFC (Near Field Communication) is becoming increasingly important for electronic payment transactions. The customers expect, particularly with regard to Mobile Payment. that gas station systems can process this NFC functionality.

We have of course paid due attention to this trend and equipped the BiCA systems with NFC functionality. From payments at the POS to Mobile Payment at gas station terminals – we face every challenge!



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