There have been a range of new mobile developments over the past few months that mean soon we could be dramatically altering the way we use our phones and make payments offline. These big changes are bound to have huge implications for both brands and customers alike, but just how will these new mobile payments work?
Ever since users have been able to access the Internet with their mobile devices, companies have been pioneering ways for them to complete transactions, so you can now buy a dress through a dedicated app or bid on and pay for an item on eBay quickly, easily and securely.
However, these new kinds of mobile transactions are different, as they mean that users can pay for things offline, such as meals, products and even services in regular shops. All of the important information needed to make payments will be stored within the user’s phone, so you simply “swipe” your phone (or use a special code or app stored on your device) in participating stores to buy things instead of solely relying on your debit or credit cards.
It’s no surprise that online giant Google is one of the first companies to pioneer this service and it’s currently working on turning all of its Android mobile devices into ‘mobile wallets’ with the Google Wallet system. According to Google, the new payment system is already being rolled out to select locations across the US and will be coming to other countries over the next year.
However, it’s not just Google that’s been working on allowing users to make these kinds of offline mobile payments, other network providers, tech companies and brands are trying to get in on the action as well. For instance, Paypal has been working with brands both in the UK and the US to pioneer a range of services that work on a similar principle, allowing people to pay for things using their phones in the real world by using their mobile devices and their Paypal accounts. Paypal has already teamed up with Pizza Express here in the UK to create a special app which not only allows users to settle the bill with their mobiles, but they can also reserve tables and browse the menu before their visit!
Although only a few brands and devices are working on implementing this new payment functionality in the near future, when they’re available to a mass audience they could really change the way we all make financial transactions, especially if the system proves to be secure and easy enough for anyone to use.