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The Future of Payment Processing – Mobile Payment Technology
Ian Robinson
/ Categories: Blog

The Future of Payment Processing – Mobile Payment Technology

As we move further towards a cashless society, it becomes exceedingly more important to understand how new payment technologies work. One of the mainstays of going cashless is mobile wallet applications such as Samsung Pay and Apple Pay– technology which has reached $75 billion in volume in 2016 and is expected to reach over $500 billion in 2020. Many believe mobile wallets are the single most significant transformation in payment technology – and it’s already here today. So, how does this technology impact your business? And, if you’re not currently utilizing these platforms, why should you consider making the change? First let’s talk a look at the basics…


What Is A Mobile Wallet?

At a very basic level, mobile wallets allow customers to carry their debit and credit cards in digital form on their smartphone, tablet and smart watches. The most widely used technology which allows users to send mobile payments to merchant’s using an electronic device is known as NFC (Near-Field Communication Technology). NFC payment technology allows two devices (such as a payment terminal and smart device) to link up and transfer small amounts of data when held within a few centimeters from each other – enabling the devices to send payment information securely.


NFC Payment Technology is not alone, two other leading methods of mobile payments include QR code (Quick Response) and Beacons. QR Code technology allows the user to scan a bar code on their device to make purchases. Key benefits of the QR Code include the reduced requirement for new payment terminals as they can be scanned with a mobile phone camera, and the efficiency and speed with which the payment can be processed. In terms of relevance, one of the most popular platforms today, Payment Code (PayPal) utilizes QR code technology for transactions.


Beacons are less common, but worth noting nonetheless. Beacon technology differs from NFC and QR Code (both of which are one-to-one user experiences) as Beacon’s provide a one-to-many option. Beacon devices transmit a signal that communicate with other Bluetooth connected devices within close proximity to the beacon. The benefit of beacons is that once a customer enters the store the beacon alerts the merchant of their presence and can even push promotional notifications to customer devices. Furthermore, at check-out the merchant can post the purchase to the customer’s account. The beacon also offers a unique option whereby customers may scan and pay for items without the involvement of a store cashier – should the retailer so choose. It’s worth noting that Beacons only work if the customer has enabled BLE on their device.


How Do Mobile Payments Help Your Business?

  1. Increases Sales

Customers may choose to not purchase a product if they have insufficient cash on them. Accepting mobile payments reduces this risk as it provides a cashless payment option.

  1. Faster Checkout

Mobile payments take less time than cash, helping your business serve customers efficiently; particularly important during busy periods.

  1. Customer Experience

Customers expect the latest technology from businesses – failing to meet that expectation can create a negative experience.


Which Mobile Wallet Application Is Leading The Way?

% of U.S. Retailers Accepting These Mobile Payment Technology Platforms Today

% of U.S. Retailers Accepting These Mobile Payment Technology Platforms Today

Stats per BRP Consulting’s The Mobile World of Retail Report, 2017.



Apple Pay Logo

Apple Pay – an NFC payment based platform which uses the payment information within the users existing iTunes account to process payments. Apple doesn’t charge users, merchants or developers, but instead collects a fee from participating banks on a per transaction basis. According to Boston Retail Partners (BRP), Apple Pay leads the way with a 36% acceptance rate among retailers.


Pay Pal Logo

Payment Code – released by PayPal in 2013 allowing them to expand from being online-only into physical stores. Unlike Apple Pay, Payment Code actually utilizes QR Code technology and charges a percentage based fee on each transaction. Payment Code utilizes the payment information within the users existing PayPal accounts. PayPal is the second most popular service today with a 34% acceptance rate among retailers.


Master Card Pay Pass Logo

MasterCard Pay Pass – With a 25% acceptance rate among retailers, MasterCard Pay Pass is third in terms of acceptance. Like Apple Pay, Pay Pass uses NFC payment technology to process payments.


Android Pay Logo

Android Pay – Android pay is fourth with 24% acceptance at retailers and works through NFC technology similar to Apple Pay. Customers add their credit, debit, loyalty programs and gift cards to the app and use it in-store for purchases. Android Pay does not take transaction fees from the merchant or customer.


Visa Checkout Logo

Visa Checkout – With 20% acceptance at retailers, Visa Checkout is the fifth most popular mobile payment platform utilizing NFC technology similar to Apply Pay. Like many of the platforms discussed, Visa Checkout does not include additional costs to use.


Samsung Pay Logo

Samsung Pay – another NFC payment based platform, which allows users to scan credit or debit cards with their smartphone camera to add it to the application. Unlike Apple Pay, Samsung doesn’t see Samsung Pay as a revenue stream, and therefore does not collect fees from customers, merchants, or participating banks. Samsung Pay is sixth with 18% adoption rate at retailers.


How Do I Get Started?

Thinking of accepting mobile payments at your business but don’t know where to start? We’re here to help…

Step One - Get your business setup with a MID (Merchant ID Number) which identifies your business and banking institution for authorized transactions and bank deposits. You may contact TEI Payment Solutions at info@teipaymentsolutions.com for assistance.

Step Two - Get an NFC-capable payment terminal, a complete list of TEI Payment Solution’s compatible devices can be found here: http://teipaymentsolutions.com/Devices.

Step Three - Start accepting mobile payments by having customers hold their device near your payment terminal.


Congratulations, you are now accepting the future of payment technology!


For The Boston Retail Partners (BRP) Study, visit: http://www.pcmsdatafit.com/wp-content/uploads/2017/04/Mobile-Technology-Special-Report-%C2%AD-042517-PCMS.pdf

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