You may never have heard the term “mobile wallet” before, but if you are involved in merchant credit card processing, pay attention. This is the wave of the future. Mobile wallets will be one of several ways to process payment no matter where you are in the online gaming credit card processing next few years, and for a business that doesn’t stay in an office, it can make closing the sale much simpler.
Mobile Payment Options
Wireless terminals, SMS payments and mobile wallets are all ways to process payments without being hooked to a telephone line. Each works a bit differently.
* Wireless terminals are the most commonly used mobile payment options at this time. They use WiFi connections or cellular phone signals to process payment from credit cards in a traditional manner. Another choice is a smart phone adaptor which allows merchants to use their Blackberry or iPhone to do the same thing. Barring the smart phone apps, there is nothing particularly new with this technology.
* SMS payments involve a relationship between a particular merchant and the cellular service provider. You can set up such arrangements so that either the merchant initiates contact or the buyer does, but the end result is that when the buyer texts a specific message to a particular number the merchant gets paid. The most common use at this time is for small ticket items such as cell phone ringtones, games or charitable donations. With a charge of 50% per transaction though, it is hard to understand why anyone would bother at this point.
* Mobile wallets aren’t quite here yet. The technology is still in development, but is very promising. Just about everyone has a mobile phone and by providing secure software that will allow people to simply “swipe” their phones in some manner to pay for purchases, the whole process of credit card payment could be abbreviated.
So What is the Hold Up?
There are several features that any mobile wallet must have for it to be successful. First, it must allow the buyer to select which card they wish to use for which purchase. Next, it must work with whatever phone the buyer already has. It must allow for use of current accounts, without requiring the buyer to establish new lines of credit. Security must be extensive so that if a person loses their phone, their credit card information isn’t at risk and finally, a mobile wallet must work as quickly as a regular credit card to replace it.