What are mobile payments?

Mobile payments are financial transactions that are made digitally through a smartphone or mobile device. 

 

What are digital or mobile wallets?

A digital wallet is an app that stores a digital copy of your debit or credit card information. Giving users the capability to make purchases or transactions digitally. The most common digital wallet apps available are Apple Pay, Samsung Pay and Google Pay. 

Users can download these and other digital wallet apps to their smartphone. Once downloaded the users can then upload their credit card details and store them on their digital wallet to make purchases without their physical credit card present. Some apps also allow users to upload loyalty cards. And just like a physical wallet, some digital wallets allow the user to store multiple cards. 

A digital wallet is sometimes mistaken as a mobile wallet though there is a slight difference between them. Digital wallets can be used online with a range of devices such as a desktop, tablet or a mobile device. Whereas mobile wallets, hence the name, are used on mobile devices like a smartphone or smartwatch. 

 

How do I make a mobile payment?

After downloading a digital wallet app and uploading the digital version of your credit card. Open the app and select the card you wish to pay with. Then enter either your chosen pin number or use thumbprint authorization. Finally, place the back of your device against the terminal or NFC (Near Field Communication) reader to transact. An NFC is a technology that allows to wirelessly share information. 

 

Are digital wallets secure?

Digital wallets are very secure for making payments. They use an encryption and tokenisation payment method that generate token numbers with time limits to process a transaction. This means that every time a transaction is made with your digital card the card information is not shared in the process. 

 

How many Australians use digital wallets?

The results from a released Roy Morgan ‘Digital Payment Solutions Currency Report’ in November 2018 showed that in the last 12 months that 12.6% (2.6 million) were using digital payment systems inclusive of the Fintechs and banks. 

“Digital payment systems outside of the major banks are the Fintechs,( including; Android Pay, Apple Pay, Samsung Pay, and Google Wallet) which were used by 6.8% (1.4 million) over the last 12 months. This was higher than banks own mobile payments systems used by 5.8% or 1.2 million."

Norman Morris, Industry Communications Director, Roy Morgan says: 

“The increasing use of new payment technologies is being aided by the growing proliferation and development of smart phones and wearables with integrated technology such as Apple Pay and Google Pay, and an increasing number of financial institutions enabling their customers to make payments with these devices.

“Consumers will increasingly want simplified and convenient payment systems and the industry will need to adapt to these expectations by providing more innovative solutions. Traditional financial institutions may need to collaborate with Fintechs and other third parties to keep up with the rapidly changing digital payment environment.”

 

Which Australians banks offer Apple Pay with credit cards?

American Express, ANZ, CommBank, HSBC, ING.

Apple Pay app works with devices like the iPhone (version 6 or newer), iPad, Apple Watch and Mac computers. which lets you tap and pay at stores and restaurants with contactless point-of-sales systems. You can make purchases in store, within apps and participating websites. 

 

 

Which Australian banks offer Google Pay with credit cards?

American Express, ANZ, CommBank, Citi, HSBC, Westpac.

Google Pay is the fast, simple way to pay on sites, in apps, and in stores using the cards saved to your Google Account. It protects your payment info with multiple layers of security and makes it easy to send money, store tickets, or cash in on rewards – all from one convenient place to store loyalty cards, gift cards, plane tickets and more. Promotions are also offered to its users within the app, which is on top of the benefits and promotions offered on the credit card itself. 

 

 

Which Australian banks offer Samsung Pay with credit cards?

American Express, ANZ, CommBank, Citi, HSBC, Westpac.

Samsung Pay works on the Samsung Galaxy S6, Galaxy S6 Edge, Galaxy S6 Edge Plus, and Galaxy Note 5, and with Galaxy Watch, Gear. The app allows the user the store eligible debit and credit cards and loyalty cards. Accessing the app is easy just swipe up on your smartphone to activate the app and pay. Every transaction made through Samsung Pay requires the iris, fingerprinting or PIN to authorize the payment.