Digital payment methods allow you to pay for things with a card or digital device. This can be convenient and beneficial, but there may also be additional factors to consider. Read on for more information about making digital payments to both businesses and peers.
Paying with a card
Debit, credit and prepaid cards can be used to make purchases at a business in several ways. Online, you can purchase something by inputting your card information (the card number, expiration date, CVC or security code, billing address and your name). In person, these cards are enabled with magnetic strips, microchips and Tap-to-Pay technologies. The magnetic strip is the stripe on the back of your card; it is used by swiping your card through the reader. Newer cards may have a microchip, which can be seen on the front of the card. To use the microchip, you insert the card into the card reader. Microchips were introduced because they are faster and more secure than the magnetic strip.
Some credit, debit and prepaid cards may also have a Tap-to-Pay functionality that is enabled through near field communication. This technology, which is similar to Bluetooth, can also be used in key fobs, mobile phones and smaller cards to enable payments or other exchanges. Tap to Pay can be faster and more hygienic than other payment methods, but it is not always available.
Paying through digital devices
The following mobile payment options can be great if you don’t want to bring your physical wallet with you, but be aware that they are not accepted at every retailer.
- Mobile wallet: You can also make payments using a digital device like a mobile phone or watch. One method, called an e-wallet, involves inputting your card information into your phone. Then, when you need to make a purchase, you can simply tap your phone – using the same technology as Tap to Pay for cards.
- Mobile money: Mobile money is a similar option. This is when money is stored in an account that is linked to a mobile phone number – a service provided by the same company that provides mobile phone service. Mobile money can be accessed, sent or received anywhere there is a phone signal. You can send mobile money payments to businesses or to other people, as long as they have an account.
- QR code: Another way to pay through your digital device is via a QR code. This is like a barcode that a business provides; you can scan it with your device to be taken to a page to input your payment information.
Making person-to-person payments
Gone are the days when you had to rely on cash to make payments to friends and family. Now, there are a variety of online money transfer options that you can use. Most of these technologies involve uploading your card information to fund your digital account. When other people pay you, you can send their payment to your account. Sometimes the service will charge you a small fee, so be sure to monitor your charges. Not all person-to-person payment tools are equal: do research into the security of each platform to see if they have had any security issues. You should also make sure that your password is unique and memorable so that you never get locked out of your account.
Super apps
A super app combines a variety of apps into one mobile app. It serves as an aggregator, so you can access different app functions, such as social media, ecommerce and bill pay, without having to leave the app. Similar to the experience of going to the mall, super apps give you access to many services in one place.