The technology behind mobile payments continues to improve at a rapid pace. The idea of mobile payments is not a new concept, however.
When Coca Cola first introduced mobile purchasing in 1997, the company set up vending machines that allowed their customers to purchase drinks via text message. This set in motion a series of positive events that have come to change the mobile payment customer experience.
In fact, this concept has a very long history starting with the earliest form of “mobile” payment – livestock. Precious metal coins were used in 700 B.C., paper money was first used in China in 960, the first “charge card” was issued in 1921 and the first modern credit card was issued in 1958.
Since then, mobile payments have evolved even further. Coca Cola first introduced mobile purchasing in 1997. The company set up vending machines that allowed their customers to purchase drinks via text message. That same year, ExxonMobile began offering their customers the option of contactless payment. These events began the early years of text and RFID mobile payment options.
The Evolution of Mobile Payment Customer Experience
What do these developments mean for consumers today? According to the infographic below by emerchantbroker.com, there will be approximately 447.9 million mobile payment users worldwide by 2016. These advances in technology mean that the consumers’ experience is continuing to be even more convenient, faster and efficient.
Mobile Customer Experience Today
Nothing could be more convenient than being able to pay for goods and services all from your mobile device from whatever location you need to do so. As of the second quarter of 2014, the second most popular form of mobile payment was Near Field Communication (NFC) 37% of smartphone users paid for goods using this method while 19% of tablet users used this method.
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Near Field Communication (NFC) has recently begun to be utilized by merchants. This technology not only allows consumers to look up information on producers, but it also allows the consumer to check out at a contactless payment terminal. NFC has a small transmitting range, so it works best for one-one-one interactions and there are other services like Cloudpay that allow clients pay easily online. When a device is enabled, it connects with NFC tags when another device is nearby, but these interactions must first be activated by the consumer.
As NFC continues to evolve, it has the potential to become a one-step payment method that will work for the customer from anywhere that they choose to make a purchase. Looking back through the years, it shows just how far the evolution of mobile payments has come. The continued advancements in technology make mobile payment development seem limitless.