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Mobile Payments and the Rise of Payment Links
Mobile Payments and the Rise of Payment Links

February 12, 2024

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Mobile payments have emerged as a major disruptor in the fintech world. Mobile payments have changed the way we transact, conduct business, and carry on trade with international clients. Traditional banks had monopolised most financial offerings, and they were one of the last ones to join the bandwagon of digitisation. 
 

No doubt, digital payments, especially mobile payments have revolutionised the payment landscape for good. With each innovative solution that emerged since the inception of digital payments, the convenience factor improved considerably and the latest in this series of solutions is the payment links.

Payment links are gaining much traction too and are soon emerging as a very efficient payment solution. In this article, we discuss in detail the phenomenal ascend of mobile payments and the rise of payment links as a preferred payment mode.

Evolution of Mobile Payments

Mobile payments have come a long way since its inception in the beginning of 2000. The pioneering technology for innovative mobile payments at the time was NFC or Near Field communication. The NFC technology allowed users to facilitate contactless payments using their smart devices. This method and technology had some inherent drawbacks.

  1. Device compatibility limited its wide-scale adoption and

  2. Another deterrent was infrastructure requirements translating to additional expenses.

This presented the perfect stage for developing mobile wallets. Digital wallets allowed users to store payment information safely in their smart devices. This eliminated the need for repeatedly entering payment details at checkout counters.

The timely and widespread mobile and internet penetration catered to the transition to mobile wallets amply. With the rapid proliferation of mobile payments, the need for robust security protocols was prominent too.

Mobile payments became a stupendous success because

  1. Heightened convenience

  2. Lightning-fast payments

  3. Higher security

  4. Easy to use

  5. Eliminated the need to carry cash around

There is no doubt, mobile wallets became a global superhero in no time. People found that they could shop online, pay rent and other bills, recharge mobiles, all with just a few taps on their mobile.

Evolution of Payment links

Even though mobile wallets successfully catered to a wide range of customers and these solutions enhanced the user experience significantly, the clamor for even better solutions continued.

Payment links have subsequently emerged as a key differentiator in the fintech landscape, pandering to a diverse consumer sector. These links

  1. Can be generated easily

  2. Shared across various social media platforms

  3. Request to pay links to complete transactions securely

  4. Eliminated the need for any additional infrastructure

  5. Quick and easy to collect payments

Businesses can use these links to redirect users to a checkout page where a transaction can be completely in a safe and secure manner.

The biggest advantage of Payment links is its diverse use cases. Whether you are selling a product, or collecting donations, or even invoicing clients across the globe, sharing an easy-to-generate payment link will make the entire payment process a simple and effortless one, eliminate all complex integration's or expensive infrastructure. And the best part is that businesses of any size can leverage it.

Security- a key factor

Security is non-negotiable in the realm of digital payments. Payment links use various sophisticated technologies to address this issue. Data encryption, tokenization technology, multi-factor authentication, etc. are used to ensure safety of user data. At each touch point, customer data must be secure. Privacy must be ensured at all costs and risks mitigated.

Win-Win for all parties

Payment links mean win-win scenario for all parties concerned. As far as a business is concerned, links can be generated and shared effortlessly across social media platforms, email, sms, etc. And any customer appreciates a seamless checkout experience.

In fact most cart abandonment occurs in the last stage at a checkout counter. If you make the payment experience as seamless as possible, chances of cart abandonment is scant.

This means that payment links are

  1. Improving conversion rates.

  2. Enhancing user experience

  3. Offering smooth checkout

  4. Easy to integrate with existing systems

  5. Streamlines payment process

The road ahead

The future looks bright and promising as far as mobile payments and payment links are concerned. With technological advancements, and ever-evolving customer preferences, digital commerce and digital payments are here to stay and innovative payment options are needed to cater to diverse client base.

Every advanced technology can be adopted after keeping in mind a few prerequisites that cannot be jeopardized at any costs

  1. Customer Convenience

  2. Security & Data privacy

  3. Compliance

With all these intact, while also offering a versatile payment option, mobile payments and payment links are a futuristic solution that have revolutionised the way we transact permanently!


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