What Are Mobile Payments?

EMV mobile payment at food truck

Smartphones and tablets enable us to manage our day-to-day tasks and business operations easily on the go. Whether you sell online, in-store, or offsite, implementing mobile payments is essential in offering a frictionless buying experience for your customers.

Using either an Android or Apple smartphone, tablet, or wearable device, you can stay connected to your customers, drive up revenues, and secure sensitive payment data anytime, anywhere.

The Basics of Mobile Payment Solutions

With mobile payments, all major credit, debit and gift cards, or even bank account information (ACH), can be used to pay for goods or services. Mobile payments can be interpreted in several different ways.

  • Mobile Wallet: A near-field communication-enabled (NFC) mobile device can be turned into a secure virtual wallet that allows customers to store payment information, loyalty rewards, and coupons. Popular mobile wallet apps include Apple PayTM, Samsung PayTM, and Google PayTM. Customers can use mobile wallets to:
    • Make In-Store Payments: Customers can leave their physical credit cards and cash at home if they have their smartphone, tablet, or wearable device.
    • Make eCommerce Payments: Customers can checkout online using a mobile wallet wherever the preferred app is accepted.
  • Mobile eCommerce: Customers don’t necessarily need to have a virtual wallet to make an online purchase on their mobile devices. They can simply enter payment details into the mCommerce site’s checkout form.
  • Mobile Peer-to-Peer (P2P): Mobile device users can send money to family, friends, or merchants through a mobile app like PayPal, Venmo, or Zelle.
  • SMS Payments: Customers can easily pay for an item or service, or donate to a charitable cause, by simply sending a text message to a specified number. The service carrier clears the transaction, and the amount is added to the user’s monthly phone bill.
  • mPOS: Merchants can turn their smartphone or tablet into a powerful point-of-sale system anywhere with a data connection. If you provide a service that takes you out of the office or brick and mortar environment, being able to accept credit cards on the go is essential for business growth. We can help you set up a mobile payment environment with a portable EMV chip card reader and a user-friendly app.

How Mobile Payments Work

Mobile payments work in a number of ways. If your customer is using a mobile wallet, they can simply hold or wave their phone over an NFC-enabled payments terminal. The technology embedded within the phone and the terminal allows the two devices to pass encrypted payment information between each other through radio-frequency identification (RFID). Not only does First Data have the expertise and connections to offer mobile wallet technology, we also offer a complete line of NFC-enabled devices for more secure, contactless payments.

If you’re a merchant needing an mPOS system, you can do this quickly in a few steps. All you need to do is:

  • Download an app or open a web-based virtual terminal on your smartphone or tablet
  • Pair the optional card reader with your device using a Bluetooth® connection
  • Dip, swipe, or wave the card or mobile wallet over the reader. Or, manually enter the information if a reader is not being used.
  • Capture a signature right on your phone or tablet and send a receipt via email.

It’s that simple!

Solutions That Tie to Mobile Credit Card Processing

Over three-quarters of the American population own a smartphone, which for many can be considered their lifeline.* From digital wallets to mobile credit card processing, below are some of First Data’s PCI-compliant mobile payment solutions that can help you maintain a competitive edge and offer the convenience your customers need.

NFC-Enabled Credit Card Readers

From our full lineup of Clover point-of-sale systems to our countertop terminals, like the FD130, our credit card machines can support all of the most popular payment options available. That includes purchases made with mobile wallets using NFC-enabled smartphones, tablets, and wearables. Customers simply tap or wave their devices over the credit card reader, and the transaction is quickly and securely completed!

Clover Go mPOS

The Clover Go mobile payment solution allows merchants to leverage EMV chip card processing and NFC payments directly through your mobile device. Clover Go only requires an Android or iOS app and a Bluetooth® connection that pairs with your smartphone or tablet. The minimalist mPOS system, works right out of the box so you can begin accepting payments wherever your business takes you.

SourceConnectSM Trusted Service Management (TSM)

With SourceConnectSM, we help you turn an NFC-enabled device into a secure mobile wallet. Using our expertise in the mobile payments ecosystem, we work with the network operators and smartphone and tablet manufacturers to establish the agreements and technical connections your business needs to deliver a timely and consistent mobile experience.

PayEdge® Mobile Solution

Some consumers prefer to pay with bank account information rather than a credit or debit card. First Data’s PayEdge® is a cloud-based mobile payment solution which is ACH-based and facilitates secure, low-cost payments for merchants. The flexibility of this solution helps you stay competitive in an evolving mobile payment environment.

Universal Commerce (uCom)

First Data’s Universal Commerce (uCom) solution provides consumers with a seamless experience throughout a full transaction from any purchasing channel - in store, online, mobile, connected car or IOT. By combining shopping, payment, marketing, loyalty, and money management into one interface, this solution speeds the payment process, while providing value-added services that can provide additional revenue streams and streamline operational efficiency.

Why Do You Need Mobile Payment Solutions?

Adopting a mobile payment solution can help take your business to the next level. It enhances customer convenience, which leads to increased sales and improved retention.

An mPOS system is also a strategic way to reduce your operational costs. Credit and debit cards can be easily and securely accepted right from your phone or tablet without the need for a pricey, bulky POS system.

Integration is the key to creating operational efficiencies for your business, and our solutions help you accomplish this when implementing payments within an app or a wallet. Additionally, by processing payments on the go, all of your transactions are integrated with a payment gateway for centralized reporting and easy reconciliation.

Payment security is always at the forefront of our solutions, and this is no exception when it comes to mobile payments. Mobile payments may be even more secure when you factor in the use of tokenization, biometrics, and multi-factor authentication.

Our professional team is here to assist you! Get started with a mobile payment solution for your: