Over the past few decades, we have seen society's preferred mode of payment shift from physical currency to debit cards and credit cards. As time goes on, other forms of payment have emerged, and are poised to take over as our new preferred method of payment. Proximity payments technology is but one of these technologies, and consists of the use of smartphones in order to transfer funds between businesses and customers in exchange for products and services, transcending industries and finding more nuanced uses every day. According to eMarketer.com, proximity payments in the United States handled $8.7 billion in transactions for the year 2015. For 2016, experts expect this number to climb as high as $27 billion. If this trend continues, this means that this technology will be the main method of financial transaction by 2019.
How Does Proximity Payment Work?
Proximity payment technology consists of an exchange between a smartphone and another compatible device via Bluetooth technology, where the smartphone acts similarly to a debit or credit card, connected to a customer's bank account. Of course, this means that both devices in a proximity payment exchange need to have Bluetooth capabilities, but as time goes on, more and more devices are becoming Bluetooth compatible.
Netclearance vs. Other Proximity Payment Technologies
As proximity payment technologies have become more popular, many companies have tried to jump on this trend, each with varying degrees of success. Examples include Android Pay, ApplePay, and Samsung Pay. While each of these technologies are innovative, they all have their own issues that impede ease of access, including:
- Usable only on phones they manufacture (walled garden effect)
- Credit card based systems
- User data shared with Google and other sites
- No options for customization
- Added fees
- Phone agnostic (supports all smartphones regardless of make and model)
- User data shared only with relevant banks and retailers
- No or low transaction fees
- Customizable (white-label)
With such a stark contrast, it's clear why mBeaconPay available here at Netclearance is more effective than its competitors. Contact us today to find out more!