Mobile payment platforms have drastically changed the global payment landscape. Now you can pay online for all your needs. Here we have explored the growth of mobile payments from a business model perspective.
Mobile payments have revolutionised the payment structure. Its power has increased a lot during the times of COVID-19 pandemic. No one has expected such a sudden hike in the usage of mobile payments in the times of the COVID-19 pandemic. Whether you want to pay for groceries or you want to pay for your food, you can pay online.
As per Statista, the total transaction value in digital payments will reach $8,170,406 million (approx.) by 2024. So this is the best time for you to build a robust mobile money solution to take the benefit of this digital payments growth.
If you are thinking of developing a robust mobile payment platform for growing your business profits, then you must hire software development company or you can outsource your mobile payment app development to remote developers.
But integrating a mobile payment platform is not that easy as you think. You may have to face some challenges while using a mobile payment platform. Here we will show you six challenges of using a mobile platform.
What are the challenges of mobile payment platforms?
Mobile payment platforms have revolutionised global payment markets by allowing everyone to make online payments. But mobile payment platforms also have their own share of challenges for both the vendor and the customer. Here are a few challenges of mobile payment platforms:
Serious security concern
Payment security is the main challenge of mobile payment platforms. Mobile payment platforms save the card details of the owners to make payments easy. That is why many customers are hesitating to use these platforms.
Data breaches in using the mobile payment platforms made life tougher for banks, customers and payment service providers. Fraudsters have started using innovative tools to get the user’s login information, passwords and other sensitive data.
Currently, the payment businesses are using technologies such as fingerprint sensors, tokenization, end to end encryption, digital signature, etc. to provide a secure payment experience to their customers.
Use of UPI
The introduction of UPI has created a challenge for mobile payment platforms. With UPI, customers can pay from their bank accounts directly. So there is no need to store anything on the app.
In the UPI payment system, there is no need for any kind of POS terminals or QR codes. Thus, more and more businesses have started using UPI as they do not need to spend more for accepting payments.
The vast number of Cross-platform solutions
The increasing number of cross payment platforms and networks have also created a huge competition for mobile payments. Cross payment platforms enable customers to make online payments over any platform.
Many people are using cross payment platforms to make international payments. Cross border payment platforms support all kinds of currencies. Thus the payments become easier for the users.
Payment businesses can use some technological solutions for solving this problem. They can use near field communication, direct mobile billing, SMS based mobile payments, etc.
The slower rate of adoption
Many people still prefer to use cards rather than paying by a mobile payment platform. They are not willing to learn the mobile payment technology. Also, they consider mobile payments insecure due to their lack of knowledge.
To solve this issue, the mobile payment service providers have to educate the customers on mobile payments. They need to earn the trust of their customers and make them familiar with mobile payments. Mobile payment providers need to teach security measures to their users.
By doing the above mentioned things you can increase the user adoption for your mobile payment platform.
Payments businesses are facing some technical issues while using mobile payment platforms. Due to these technical issues, payments businesses may have to lose their customers or incur big losses.
The internet connection speed can also be an issue for mobile payments. Also, the data infrastructure at some places is not up to the mark. All these things have created a demand for a robust payment platform.
The usage of smartphone is low as many people are still using the same old phones that don’t support apps. Mobile payment providers need to fill this gap.
Competition from credit cards and debit cards
Credit cards and debit cards are still giving a tough competition to the mobile payment platforms. The transaction limits on these cards are comparatively higher than the mobile wallets. Also, the cash is still in trend. Many people prefer to pay by cash rather than paying online.
Coping up with this increased competition can be a bit tough for you but you can conquer it by executing a well-planned business strategy.
Mobile payments still have to face many challenges ahead. Increasing security concerns, changing technologies, numerous cross payment platforms, slower adoption, etc. are a few challenges that are faced by mobile payment platforms. However, you can overcome these challenges through a structured marketing strategy, educating customers, and proper planning.
If you think that making a mobile payment platform is challenging for you then you can take help of a payment solution provider. A payment service provider can help you to make a profitable payment solution. Thanks for reading this blog. Follow us for more such wonderful insights.
Author: Nikunj Gundaniya, Product manager Digipay.guru, one of the leading fintech solution providers USA, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.