“There will be a time — I don’t know when, I can’t give you a date — when physical money is just going to cease to exist,” said economist Robert Reich
The days of a completely cashless society are upon us. The year 2020 is an opportunity for mobile wallets. Billions of people are getting familiar with online payment methods. The online payment options have wiped out the necessity to carry cash.
The mobile payment market is penetrating the Asia-Pacific region, as these regions are rapidly adapting the electronic payment models. China is the world’s largest mobile payment market, after encouraging people to use the digital payment system to reduce the Covid-19 infection rate, the mobile payment transactions in China will reach RMB777.5 trillion in 2020.
Also, 25% of transactions in India and 75% of transactions in Australia are contributing to the contactless payment method.
According to the NFC-Forum.org report, the mobile Wallet market in 2020 is said to be worth $1trillion and is growing by 36.5% year-on-year. This trend will continue to raise the wallet market to $2.1trillion. Over 1 Billion people are using money wallets and NFC enabled(Near Field Communication) payment methods which have raised the wireless standards for online banking transfer.
Here are the leading players of the tap and pay market.
1) Google Pay:
It´s a personal banking system for most of the users. Designed for Android mobiles, it lets you do transactions in a secure environment. Sending and receiving money in Android and iOS mobiles is easy using Gmail. The information is encrypted end-to-end which enables secure transactions in any device and revokes the access of the user’s Google account.
Purchasing items through Google Pay is possible thanks to millions of physical stores with NFC contactless payment technology. Hovering over the Google Pay enabled terminal will directly open your Google Pay app for the transaction. It uses credit or debit cards or your linked bank account.
Google has features like find-my-devices that search, erase, and locks the devices that are no longer in possession of their owners or no longer functional, which keeps information always private. Google Pay also links to PayPal accounts.
Its integration with major banks like Chase, Wells Fargo, Citibank, and Bank of America makes using Google Pay a no brainer, it’s also transactions is an additional reason for stores to use Google Pay. The list continues as Google also includes institutions like Stride Bank, First Harrison Bank, Finex Credit Union.
2) Apple Pay:
Known as the mobile Payment service for Apple devices, Apple Pay is available in 24 countries and is accepted in the US by millions of stores. It works on devices like iPhones, iPad, Apple Watch, and even the Mac that is loaded with NFC technology. It is currently the most popular mobile payment platform in the US. The features like one-tap pay, peer-to-peer payments, ease of use thanks to its integration with iMessage, Apple cash, Apple Card, and Apple on the web are reasons why is widely used in the US and across continents.
To secure the transactions Apple uses the tokenization methods that avoid the credit card numbers to be used directly. For confirmation, it uses Touch ID or Face ID recognition on iPhones, whereas continual skin contact with Apple Watch.
Soon you will have Apple wallet replaced with Apple Pay, this will reduce the physical use of credit cards and debit cards and enable a one-step contactless payment process.
PayPal has been a long-player in the online payment game and is best known to transfer the funds across the globe. You can shop using PayPal or enable a simple peer-to-peer transfer. The redesigning of the interface has made it easy to send money by selecting the PayPal account or by using PayPal.me, even scanning a custom QR code. PayPal is reliable and works with any kind of email for payments. The PayPal account connects to your bank account or credit and debit card.
PayPal is more expensive than other apps as it charges a 2.9% fee of the money sent along with 30 cents extra; In exchange, it gives the user money back buyer protection, in case the item the user is buying comes defected, not as described or doesn’t arrive at all. It also allows sending money to friends and family free of charge, without said buyer protection. It ties with Google Pay and Apple Pay to transfer a maximum amount of 10,000 at a time. PayPal allows you to manually transfer your money directly to your bank account in 1-3 working days or instantly for a fee. It is available for Android and iOS mobiles.
4) Samsung Pay:
Samsung Pay works only on Samsung Phone. It is an option for Google Pay as it works will all payment kiosks. It uses MST (Magnetic Secure Transmission) Technology that pushes the magnetic stripe data of your card to the terminal, this is a standard method. This also works on NFC and transmits the data via both at the same time.
It supports multiple cards and initiates a payment from the lock screen with a swipe gesture.
Wave the Samsung smartphone to the terminal for paying products instead of swiping the MasterCard on NFC enabled devices or on older magnetic terminals.
Venmo is similar to PayPal but users can sign-in using their Facebook account. It works on any mobile and links the user’s credit card details or bank account details. The app is used to transfer the money and maintains its cash balance. The Venmo user is paid directly using the authentication of Facebook and email accounts and also provides a physical Venmo debit card. It is similar to the social networking sites that display your friend’s payment activities. The funds are directly transferred to the bank. Venmo is an IOU payment system and documents all your transactions. A virtual ATM enables you to debit cash from your bank accounts.
The money transfer is free of cost and the user usually gets in 3-4 days, it also offers instant transfers that cost 1% of the transferred amount that could range from a minimum of 25 cents to a maximum of $10.
6) Cash App:
Cash App is available on Google Play and Apple Store. It is the easiest way to send peer-to-peer payments, payments, or even donations. An account is created in Cash App with a mobile number and email address; Later the bank details or card details are linked. You can directly send the money to the payee’s Cash app or transfer it directly to their bank account. Using Cash App you can convert the dollars to bitcoin and invest in stocks.
7) Zelle Pay:
With Zelle integrated with your bank’s mobile app, you don’t need to worry about the transactions to your family and friends. Zelle is the quickest way to move money as it accesses bank accounts and does not hold the balance in the user’s Zelle account. Create a Zelle account with a phone number and email address and make your transactions. Zelle partners with 800+ financial institutions. This increases the chances of having Zelle through bank mobile apps.
It is free and does not charge to transfer to your account. There are other features like money requests, split payments which can be used while doing transactions with friends. In the case of a bank mobile app not supporting Zelle, you can download the Zelle app and use it directly through them.
What to choose:
We have seen the best 5 payment apps using NFC technology. Most of them are available on iOS and Android.
For Samsung phones, you can use Samsung pay by inputting your card details, or Google Pay depends on what’s more convenient.
For the iOS system using Apple Pay is a good idea. Apple iPhone, watch, and other similar devices have NFC and security features enabled in them.
For Android systems, Google Pay is the best option. It is fast and works with credit, debit, and bank transfer payment methods.
Global payments can be done using Paypal. It works on Android, iOS, and Web. The credit and Debit fees are high as compared to other payment methods but is reliable and transfers to your bank account in 3-4 working days.
Venmo features are similar to social sites. Using Facebook authentication you can access your bank account through the Venmo app. It uses your credit, debit cards and also does a direct bank transfer. If you are working with social groups, it’s easy to transfer and receive money from them.
If you are an investor or bitcoin user Cash App is the best as a payment wallet.
Zelle has an edge over other payment apps, as it’s integrated with banks’ mobile apps. With no transaction fees, users prefer it over other apps.
The proliferation of NFC technology has just started and soon there will be better payment systems. The software or mobile app developing companies working on payment systems can consider cashless payment methods using NFC technology.
Big Kitty Labs is one of the leading software development companies in Columbus Ohio that has been developing applications, websites, and software for over 10 years. Contact us for free discovery and consultation on your next project!