There is a common misconception that paying by phone is less safe than paying by card or check. In a 2016 survey by Accenture Consulting, 19% of participants felt that paying with their mobile devices could easily subject them to fraud and 21% didn’t feel comfortable entering their card information into their mobile device.
Fortunately, thanks to the right advertising and security efforts enforced by major mobile carriers, more and more consumers are becoming comfortable with the idea of mobile payments. In fact, the number of those who use secure mobile payments in stores is estimated to grow by 80% and account for more than half of the consumer population by the year 2020.
Secure mobile payments are a great step forward in the world of consumer technology. In this article, we’ll debunk the assumptions that SMS billing is a risky form of payment and give you some insight into why your customers want it.
The Security of Mobile Payments
In contrast to the opinions of the non-believers, experts claim that mobile payments may actually be more secure than using cards, checks, or cash. Here are the facts about mobile security.
Encryptions and Tokenization
Apple Pay, Android Pay, and Samsung Pay are the three major providers of mobile payment technologies. Each of these providers has outfitted their mobile pay capabilities with a series of encryptions and tokenizations to keep users’ information secure. These security measures conceal the actual payment information, such as the card number, by using tokens instead.
Apple, Android, and Samsung have also equipped their mobile payment capabilities with an additional security measure called near-field communication (or NFC). This limits the line of communication to a very small distance between the phone and the reader at the checkout counter. NFC greatly reduces a potential hacker’s ability to steal information from the phone when a payment is in process, which is a common concern when it comes to using your mobile phone to make a payment.
Phone Lock Required
Another common concern with using SMS billing and mobile payments is what may happen if the phone is stolen. Fortunately, mobile payment functionality is only an option on phones that have their phone lock on, and can only be used when the phone is unlocked.
Additional safety measures like wipe controls and remote tracking can also be installed ahead of time to protect information in the event of a stolen phone.
Why Customers Want It
Secure mobile payments through SMS billing is the way of the future. These payment methods are convenient, reliable, and secure, which is what every consumer looks for in any shopping experience. As more and more businesses evolve with mobile payments, customers will begin to expect it and physical cards will become a thing of the past.
There is also an undeniable wow factor that younger consumers like about mobile payments. If your customers are largely comprised of millennials, it is especially important for you to offer mobile payments and SMS billing at your establishment. Without this new form of trending technology, you will soon appear outdated and unable to adapt to the digital world—like businesses which only accept cash or check the last several years.
In an IBM article written by Kevin Beaver, an information security consultant, Beaver expresses his frustration with the number of businesses that are aloof to this technology by writing, “They have no idea what it means to pay with a phone, even when their company supports mobile payment. Many don’t even know which buttons to push on the register when someone asks to pay via mobile.” Some companies are so behind that, when they see a customer paying with their phone, they accuse them of trying to hack into the system, such as with this man who was accused of committing fraud when he paid with his mobile device at a Florida Publix.
Don’t develop a reputation of being unable to evolve as a business. Improve your customer journey and start using secure mobile payment methods in your establishments. Contact Blytz Pay today to keep up with your customers by offering SMS billing.