Fintech Valley presents you how traditional Mobile Payments combined with new Business Models disrupt how consumers pay and what they do with their money via their mobile devices
Opposite to the traditional online payment processing, where the innovation pace has been slow, there are several Fintech companies that are disrupting the way consumers pay and where they pay. As it has happened with other technologies, they help accelerate the acceptance of credit cards and also open the door for users to pay and do whatever they want to do with their money via their mobile devices.
After the invention of the credit card, there was innovation, but it was rather slow: We have Automatic Teller Machines (ATM) or Cashpoints, Points of Sale (POS) stations that accept credit card payments for small merchants in shops, Credit, Debit and Prepaid Cards, etc. This was in the course of around 50 years, when the Credit Card was created. Considering that
in some countries, ATM’s were not a common sight until the late 90s, the pace of the current innovation has no comparison to previous decades.
Fintech companies are pushing innovation forward and creating new business models based on mobile devices, social network services, mobile messaging, credit scoring, bank accounts and / or the mentioned credit card.
The most common business model has its origin in Europe in the early 2000. Mobile Payment via SMS services, or Carrier billing, has been in use for several years. It is quite expensive for the companies accepting it as a payment method, and creates headaches at the time of payouts, VAT, cashflow, etc.
But Fintech companies want to skip an intermediary (or intermediaries) and take advantage of other technologies and features available in Smartphones. One example is the use of the camera and QR codes or the Barcodes. The user has the option to scan a code in order to see the following: availability as well as the price of the product, compare it with other shops, and then order and pay for it. Either online or in the shop premises.
Companies such as Digital Retail in Canada, are offering these services. They brand it as SelfPay. Further information and a video can be found under this link: http://www.digitalretailapps.com/
Another Mobile Payment company that is using the combination of a QR code and a mobile phone is the German company Ipayst. They offer the solution also for restaurants, online shops, and printed media. More info under: http://www.ipayst.com/en
As mentioned previously, innovation in Mobile Payments also takes advantage of other technologies, such as QR codes in previous examples. Fastacash from Singapore, wants to use Social Media, to pay and transfer money between friends. According to their website, the consumer can transfer, not only money, but airtime, coupons, and other items of value. Read more about it at: http://www.fastacash.com/
Companies like Gustpay, incorporate NFC technology, ticketing, payments, event management software and other features to offer a suite that lets its customers to organise great events. Information about this British company is available at: https://www.gustpay.com/
More information about Mobile payments and Fintech in the second part of this post.