Perks and Pitfalls of Mobile Payments

Whether it’s for reasons of security or for convenience, a lot of establishments have already started accepting mobile payments. From the credit card processor to the mobile device, a variety of factors affect the whole situation. 

Chances are you’ve made purchases through mobile payments already. How did that go for you? We’d be willing to bet you found it very convenient to make purchases like that. 

The reason mobile payments have been so popular is because of that very reason: Convenience. Plus, they’ve been more accessible for shops to integrate. That’s because most credit card processors have been able to integrate the technology more efficiently as of late. 

But do we really understand what we stand to gain or, otherwise, lose? For shop owners and shoppers alike, some trade-offs will have to be made. Let’s make things simpler by taking the pros and cons and explaining everything in between. 



The Cashless Advantage 

It’s not hard to see why this would be a pro. By opting for mobile payments, users don’t have to carry cash around anymore. For store owners, this means having to think less about securing a large amount of hard cash on your premises. 

Credit card processors have been allowing people to do this for a while now. Thankfully, they were some of the first to include this feature in their services. Instead of having to pay for two different services, stores need only to subscribe to one such service. 

All this is to say that there are simple solutions for better peace of mind. Of course, what methods are available will depend on your credit card processor.

Faster Transactions 

The time of customers and cashiers alike struggling with giving exact amounts is coming to an end. Mobile payments, both physical and online, are some of the fastest transactions. That’s thanks to the developments in mobile technology.

With a few taps on a mobile phone users are able to transfer the exact amount every time. For NFC-enabled devices, all it takes is tapping the device itself on the payment terminal. Again, it’s another win-win situation for everyone. 

This is the main reason why many people are choosing to make the switch and pay this way. For the most part, the steps are similar for both physical and digital payments making things easier for the user. 

More Convenient

What’s one thing most people can’t leave home without? The mobile device has become such a universally important tool that most people would have theirs on them most of the time. Gone are the days of having to bring a collection of credit cards. 

Even at home, this becomes an advantage. ECommerce credit card processors provide service for just that purpose. Mobile payments remove the necessity of swiping a debit or credit card.

Now, anyone can make important purchases with their credit cards while lying down in bed. That’s thanks to the support that most modern mobile devices carry for mobile payments. 

More Secure

We know we mentioned the advantages of cashless transactions, but we’re talking about a different kind of security. That’s because with mobile transactions the user’s important data isn’t stored anywhere. 

Instead of having a record of the actual credit card details, transactions are verified through a token. Simply put, a token is what is saved instead of private information. It’s combined with a one-time code for added security. 

The token is only generated after users input their account information for the first time. That means credit card processors don’t hand out copies of your details with each transaction.

User Incentives

Included with these perks is the bonus of rewards programs. These are programs credit card processors and banks use to incentivize transactions done with mobile payments.

It could come in the forms of:

  • Points earned
  • Free items
  • Cashback percentage

This serves both the customer and the store. Users can benefit from the accumulation of these rewards while stores can benefit from the allure of better prices. 

Similar to how store sales improve units sold, rewards programs are a great way to bring in more customers. The best part is that compared to sales, these rewards programs usually last for a longer period.


Not Universal

The thing is, it is difficult to cater to every single user out there. This makes it hard for stores to offer a complete list of mobile payment services. 

This means the possibility of losing sales because the customer isn’t using the “right” mobile payment app. In the grand scale of things, this might not amount to much. In the long run, you might find that the losses are more than you think.

This is why it is important for store owners to choose the right credit card processor for their business. The tiniest details could be the reason plans don’t follow through as strategized. 

Mobile Phones Don’t Last Forever 

The very fact that mobile payments are done through mobile phones could be considered a pitfall. That’s because mobile devices, no matter how they’re advertised, don’t last forever. 

For some people, this isn’t much of a problem. Did your phone break? Get a new one! After all, accounts could always be transferred. Plus, device insurances exist for this reason. The thing is, not everyone can afford to replace a mobile phone just like that. 

The worst situation would be losing a mobile phone. Instead of worrying about replacing the device, the user instead has to worry about the security of the device and the information on it. 

Technological Limitations

Similarly, the costs of modern phones prevent some users from upgrading to a fully-featured model. That means that your choice of mobile payment terminals might affect mobile payments. This means again having to consider how the target market might see this. 

Say, you opted to focus on NFC, one-touch, payments. NFC, near-field communications, is the technology that allows for such payments. Unfortunately, not all phones carry this feature. 

For store owners, that means limiting the options available to customers. While this may not be the biggest problem it certainly causes a certain amount of reconsideration. 

Security Hasn’t Been Perfected

As far as this technology has developed, certain disadvantages cannot be avoided. The fault is not with anyone here as even the best credit card processor cannot operate beyond what’s available. 

For one thing, even if the actual information isn’t recorded, a record of the sale is still made. While malicious individuals won’t be able to access your account, they will still be able to track your purchase history. 

Considering how fast the technology has developed, we hopefully see a more complete form of confidentiality. As it is now, it would be difficult to find credit card processors with perfect security. 

User Adoption Rates

The fact of the matter is, not everyone has adapted to mobile payments. You could blame comfort zones for this but that wouldn’t be solving the problem.

The thing is, credit card processors, stores, and banks are powerless when it comes to this. There are a couple of reasons why an individual might reject an innovation. Giving them the hard data won’t be enough to convince them.

For now, the best thing to do is to focus on your target audience. If you’re fortunate enough to cater to digitally-inclined customers, then you should be able to accept mobile payments easily. 


Taking the two sides, it is apparent that mobile payment has advanced considerably compared to a few years back. Customer convenience has been the priority of credit card processors from the start and it seems that milestones have been achieved in that respect. 

As of now, the age of technology is still in its infancy. Accessibility, for one, is an issue that needs to be solved if reach is to be an issue. Unfortunately, the only thing left for the industry is to wait and study the data. 

Despite its cons, it could be argued that the current state of mobile payments is enough reason. We aren’t the only ones who see this. The mobile payment market was forecasted by Merchant Savvy to have a value of $3,081 Billion by the year 2024.

At the end of the day, it’ll be up to the business. The important part would be to choose the right credit card processor for your business. 

For the most part, payment technology has evolved an impressive amount in the past few years. It is easily understood then why credit card processors have been able to quickly adapt the method into their services. 

For store owners, this has made it easy to cater to more people at a more efficient pace. Customers, on the other hand, experience a more convenient way to go about their shopping. The situation is ideal for all involved parties. 

Mobile payments are indeed worth looking into especially if you’re looking to branch out into eCommerce. If you’re looking for a credit card processor, you can’t go wrong with Processing Card. Feel free to reach out if you have any questions about the topic!

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