Tag: mobile payment

This year will make it much easier for consumers in Australia to make purchases using smartphones.

Telcos in Australia are giving a significant kick to their intentions to bring mobile payments to consumers throughout the country so that they will be able to use their smartphones or tablets to pay for products or services at a store’s checkout counter.

This could be the first step toward making credit cards obsolete within the country.

Although mobile payments are a move that has been in the works for several years and very little action has actually been seen until very recently. Even the most recent steps have not been enormous, and the term “contactless payments” remains unknown to the majority of consumers, even among those whose devices are capable of the transactions.

Though the contactless mobile payments concept has great potential, it has been failing to gain traction.

The idea behind mobile payments is quite simple. It involves using a smartphone or tablet that is either waved over an enabled reader at a point of sale in a store, or tapped against it. This automatically transfers the funds necessary for making the purchase from the user’s credit card or bank account, into the account of the store.

The primary barrier faced by this type of mobile payments is the fact that only a small percentage of smartphones are actually enabled with the necessary NFC technology (near field communication) that allow these transactions to occur. This was held back even further by the release of the iPhone 5 by Apple, which shocked the mobile world when those chips were notably absent.

Vodafone and Telstra believe that this year will mark a difference in this trend. They believe that with many more NFC technology enabled devices entering the marketplace, it will represent a brand new opportunity for mobile payments to take off.

According to Dr. Hugh Bradlow, the chief technology officer at Telstra, “It’s been promised for a long time, but by next year many devices on the market will incorporate near field communication.” He went on to explain that in the mobile payments marketplace, “NFC has been a slow burn, but it will likely become entrenched next year and we plan to be a big part of that.”

Taxi drivers are discovering that smartphones may be the opportunity they’ve been waiting for.

Though digital wallets may be struggling and mobile payments in stores might not be taking off at the rate that was anticipated, taxi drivers are seeing the true potential in the technology for adding practical convenience and a new way to pay for the ride.

Cabbies are seeing the benefits in this technology both for themselves and their customers.

It is still rare for taxi drivers to be able to process transactions with credit cards, which means that many of them find themselves missing opportunities to make money every day. They find themselves having to send customers away when they cannot accept their preferred method of paying for the fare. Many complain of animosity from the lost customers, due to the limited options.

However, with mobile payments, this could entirely reverse the problem in a practical way.

There have been two major developments in providing mobile payments options to taxi cab passengers. The first is through an actual physical device that can connect to the driver’s smartphone or tablet. The second is through mobile apps to which both the driver and the passenger have subscribed.

In the first case, a device – often known as a dongle – is attached to the smartphone or table of the taxi driver. This allows mobile payments to be accepted by using the device to swipe credit cards. This is a highly convenient service that is offered by a number of different providers to small businesses and services such as cabs.

The idea has become so popular that there are some cab companies that will be distributing the dongles to all of their drivers so that they will have mobile payments available throughout. The advantage is that the service is quick and easy to use and doesn’t require the passenger to have a either a smartphone or an app installed on their own device to make it work.

However, some people are uncomfortable with making mobile payments on the devices of someone they don’t know. In those circumstances, apps are often available that allow them to not only book the car, but also make the payment for the ride through their own device, using a credit card.

In both cases the mobile payments typically come with a per transaction fee that will usually be in the range of 2 to 3 percent.