The mobile revolution has taken a sharp turn inching towards payment facilities with the advent of dedicated mobile app development for payment purposes. This is now giving a tough competition to the traditional banking companies and thereby making the payment industry fiercely competitive one. The key feature of mobile payments is the collection of customer’s data thru their mobile devices. Even the merchants’ point-of-sale (POS) is integrated to ensure efficiency. Surely a drastic evolution from the traditional payment methods especially in the area of customer account management and payments which needs an assurance from the risk management programs.

Opportunities
Reaching to rural areas

The interiors of any country will have the majority of the population capable enough to impact economic development in general. Mobile wallets can easily turn people to using such methods that benefit them by simplifying the process of creating bank accounts negating the physicality involved in it. The cheaper availability of data and spike in the number of rural mobile users can broaden the use and implementation of a digital payment solution with the passage of time.

Payments and Loyalty

The United States has customers joining the loyalty program quite considerably – 15 or more. But the amount of participation is just the half of it. The research also reflects the reluctance to join such programs if not accompanied by any mobile application purely because of transparency reasons.

For loyalty to exist the users need more brand engagement and must be able to associate themselves with it. Companies can gain consumer engagement by offering discount and rewards within mobile wallets.

Boost in Users

With more than 2/3rd of the world population owning the smartphone and number still rising, there is a lot to be addressed on reaching the masses. By utilizing the best wallet app development services companies can render the multi-currency transactions instantly for international transactions when permissible by law. The real-time conversion and trading are also simplified with so much reach and availability of the device.

Increased Interest in Mobile Payment among Smartphone Owners

There were reservations against making online payment and transfer when it was introduced. The main concern was of the security of bank and account details. But the younger and educated population are tech-savvy and ready to put their trust on it after putting much of research into it. A survey by Federal Reserve suggests that 3 out of 10 people are willing to embrace the cashless transactions if given a choice to do so.

Introducing Rewards

Just like credit cards have cash back, mobile wallets too can have cash backs which will push users to use m-wallets. There can be coupon codes welcoming more users onboard and also have certain discounts to offer to users on making payments. This is a great opportunity as users find it lucrative to join mobile payments and financial marketers can expect more activation through on-ground activities and publicizing the user benefits.

Challenges

Regulatory Compliance
For the security purpose, the mobile payment services need to follow all the necessary legal requirements and abide by the compliance. Such regulatory compliance is for transaction security and it also has the consumer-based regulations. Therefore, it may pose a problem for someone who is freshly entering this market.

Fraud Risk

The fear of fraud and cases of fraudulent activities in online payment is the biggest concern for a few customers. This is the reason why they are reluctant to adapt to wallet payment. Since the receiver is unknown and difficult to reach in case of discrepancies an unknown risk is always lurking. Wallet companies may build peer to peer app that assures data security, protection against undetected malware, hacking, and other e-wallet vulnerabilities.

Perception of unreliability

There is still a segment of the audience who believes that mobile wallets do not offer a reliable solution. Perhaps, they are not fully aware of them-wallet benefits or how preferring such wallets over cash and credit card are a rather reliable way to make a transaction. That is why most online buyers still root for credit cards and debit cards for online payments.

Low level of trust in the technology

Users have evolved in a commendable manner as they are now ready to make online transactions but then the level of trust in technology is still a concern. To imagine that the mobile device can be used to make payment sounds fraudulent from the word to go. They need to feel a certain level of confidence which the providers can give by assuring a certain level of trust.

Consumers collectively feel that completely depending on mobile wallets may tend to lose control completely as they are way too frequent on mobile. Research by YouGov suggests 43% of mobile users not trusting mobile wallets. More than 1/3rd of the users also feel that losing their mobile devices will stop them to make payments in future.

Conclusion

The new breed of tech-savvy generation is open to trying new methods and acknowledges any technological innovation that simplifies their lives. Since the last couple of years, there are many companies who have turned their fortunes by integrating a comprehensive mobile payment solution with a financial management tool as well. Users are already making the best use of it but going ahead, the security will be a major threat to counter as more and more users will attract hackers to take control of mobile data.

Author – Bio

Shahid Mansuri Co-founded Peerbits, one of the leading Software development company USA, in 2011 which provides Blockchain app development services. His visionary leadership and flamboyant management style have yield fruitful results for the company. He believes in sharing his strong knowledge base with learned concentration on entrepreneurship and business.