2016 is almost here! We've never been the type to dwell on the past so, instead of looking back on the trends and breakthroughs of 2015, we're looking to the future. Over the final few weeks of the year, we'll be talking about what to look for in 2016, and what impact these upcoming trends will have on your personal life and business.
You've likely been hearing a lot about the rise of "pay with your phone" technologies. 2016 will be the year mobile payment tech breaks through into the mainstream public.
How does mobile payment technology work?
Mobile phone payments are powered by NFC (near field communication) technology. All of your bank accounts and credit cards are likely already stored in your phone, through various apps. When you pay for your morning coffee and scone, instead of whipping out your debit or credit card, you can simply wave your phone over the card reader at the till. No need to open up your phone and open an app either, your phone will automatically detect the card reader, and process the payment to the card of your choice.
Apple Pay has technically been around for a year but, because many consumers were confused as to which stores offered it as a payment option, user adoption was quite slow. Apple Pay has recently become available at many more large retail stores, including McDonald's, Dominos, and Dunkin Donuts, so look for it to become more popular as availability is more widespread.
Android Pay has a large advantage over Apple Pay. While Apple Pay only works with the latest iPhone models, Android Pay works with any Android device that has NFC and Android 4.4 or later. Many Android phone manufacturers have been including NFC tech in their phones for quite some time, in anticipation for this new boom in mobile payments. This means that more people will have the capability to use Android Pay as soon as it's launched. All they have to do is download the app.
Samsung Pay has an even bigger advantage over both Apple and Android Pay. Samsung Pay uses NFC and works in the same way as both of those other mobile payment solutions, but also has a unique technology called MST (Magnetic Secure Transmission). MST allows Samsung Pay equipped phones to connect to any payment terminal where you can swipe a card, which is virtually every payment terminal in existence. This means that, as a user, you don't have to worry about whether a store accepts mobile payment options. If they take credit cards, they should take Samsung Pay.
More to come...
In addition to these 3 main players in the mobile payment industry, Walmart recently announced their own mobile payment solution, using QR codes as opposed to NFC. While it won't be ready to officially launch nationwide until 2017, it is further evidence that mobile payments are the future, and it's time you prepare to leave your wallet at home in 2016.
About the AuthorFollow on Twitter Follow on Linkedin