Business has always evolved, and today’s online businesses are no exception to that rule. Just as credit card payments changed the financial landscape when they were first broadly adopted, today’s mobile payments are looking to become a widespread and highly used shift in the financial world.
What began as simply the creation of a way to do an online mobile payment for website stores has become a whole new approach to purchasing that makes impulse buying a big part of the picture. How retail responds to this shift, and uses it to their advantage, may create a secondary wave of businesses that are created to capture this new buying habit.
From Credit Cards to Virtual Wallets
In many ways, the emergence of this type of online payment system was inevitable once the internet began to develop ways to accept payments through such portals as PayPal. Just as credit cards have gradually made carrying cash an old fashion concept to many young purchasers, virtual payments may eliminate credit cards in time.
The concept of virtual cash is not new, what is new is the way it is employed. With a simple application uploaded to a smartphone, purchases can be made with the swipe of a phone and the input of a PIN. As the security issues are cleared up for this type of payment, we will begin to see a wider acceptance across a variety of merchants for online payment systems. These will include everything from virtual credit cards to virtual wallets with ID and everything else that anyone could have carried around with them.
Setting the Table for Mobile Payments
Of course, the first wave of new businesses is going to the companies that can offer a variety of ways to implement this new payment pattern. Companies such as AltaPay that can offer a wide array of portals from simple online payment shopping carts to actual virtual wallets for smartphone users will lead the charge.
As the availability of new and easier ways to use their smartphone to pay for purchases appear, users will find it easier and easier to simply pay through their phone. In fact, for many of today’s generation of smartphone users, nothing could be more natural than to find one more way to use that one thing they would never dream of leaving their home without, their smartphones. Tethered emotionally and psychologically to their phones, making payments for both online purchases and in person was the next logical step.
Finding the Next Step
Of course, as more smartphone users get comfortable with the use of their phones to make payments for everything from a coffee from Starbucks to a dress from the local boutique, other uses are not far behind. Many of the biggest fintech companies are seeing opportunities to sell everything from short term loans to mortgages for homes and cars. If you can create a virtual signature for your credit card, why not for your home loan?
Companies like Square have created an easy to use application for mobile payment that interacts with a smartphone. It t allows street vendors and festival hosts around the world to collect payments via credit card. Beyond this initial step, more innovation is sure to follow.