The Importance of Mobile in Financial Services

Tag: mobile payments

The Importance of Mobile in Financial Services

The Importance of Mobile in Financial Services

The ever-increasing use of mobile phones in day-to-day lives is redefining the landscape of financial services and it is impacting banks, NBFCs, insurance companies and even online stores in various ways.  Today, the digitally aware section of society is using their mobiles to receive messages from financial institutions, pay EMIs, shop online, transfer money and book a restaurant or movie easily. Mobiles are replacing the conventional financial practices and you can now buy anything online without having to use cash or card, thanks to e-wallets.  This is because even smartphones have become cheaper and can be used even by kids and the elderly. Now let’s take a look at how mobile is revolutionizing financial services:

  • Impact on financial lenders – The banking sector as well as NBFCs are embracing mobile technology these days to make their operations smoother, and to reach out to a wider section of the society. Since mobile phones are widely available in rural and suburban areas today, a farmer too can get a loan conveniently with a single phone call or text. A small rural business can get funding even while sitting at home and he or she will receive notifications through the mobile phone as well. Opening an account with a bank has become convenient too this way. So, mobiles have played a huge role in boosting financial inclusion and are encouraging the economically weaker section of the society to use banking services.


  • Impact on insurance – Insurance is something that a lot of people opt for, be it to protect themselves against financial emergencies or accidents or medical emergencies etc. But with the advent of mobile phones, more and more customers research online about various insurances before picking one. They can compare the cost and benefit of choosing different insurances on their mobile phones as well. Hence, it is in the best interest of the insurance companies to use mobile technology to advertise their policies and reel in both new and old policy holders. This way, they can reach out to more target audience than they previously thought was possible.


  • Impact on online businesses – E-stores these days focus on mobile shopping apps as much as they do on their website. This is because most customers use mobile phones or smartphones to shop for fashion apparel, cookware, hardware, medicines, cosmetics and even baby care products. They have less time to spare for physical shopping and are always on the go, which makes it tough for them to use a laptop or desktop all the time. Naturally, online businesses need to ensure that the payment gateway they offer on mobile apps is secure, fast and hassle-free. This will prevent shoppers from abandoning their carts midway because of a slow gateway or one which has many redirections.

Mobile revolution and payment gateways

From buying a pizza to shopping for wedding jewelry to ordering flowers for a birthday – everything happens on mobiles these days. And simple and smart mobile apps are hence popular. But without a proper payment gateway, you will never attract enough customers through mobile marketing and your sales will dip.

Gateways like PayTabs are hence a wise choice for online stores. They deposit funds in merchant accounts fast, protect customer and transaction data, prevent frauds, and are very easy to integrate into your mobile app. Moreover, as they offer a variety of payment options, shoppers can easily pay using their credit and debit cards. The shopping experience cannot get better than this! So, it is time to adopt mobile technology whether you are a business, bank or insurance company, without a second thought, as this technology is here to stay!

5 Emerging Trends In The Mobile Payments Space

Internet was introduced just two decades ago and smartphones ushered just a decade ago marking a new revolution. Smartphones have already become the centre stage of our life today.

People not only communicate using their phones but do so many other things including many of their daily tasks. From shopping to social communication, and from bill payments to online learning, mobile phones have become an indispensable tool in our life.

As a matter of fact, mobile payments were not considered a viable option for financial transactions not very long ago because of the security issues involved. But with advanced technology and secure platforms, mobile payments have become a norm. According to a study, in 2016, 47% people used mobile phones for payment processing in the US.

In a way, innovations in mobile phone technologies have just begun. More and more new trends are expected to emerge in future that our forthcoming generations will use and they might completely eradicate the use of paper money and traditional payment methods.

Among the major trends emerging at present in mobile payments are:

  1. Mobile wallets

Mobile wallets first appeared in the global arena when the Apple Pay app was developed by mobile phone maker Apple. It was soon followed by a flood of such mobile wallet platforms and the prominent ones among those were Microsoft Wallet, Android Pay and Samsung Pay.

It is expected that mobile payment apps would cross a total volume of $500 billion in terms of transactions by 2020. It has seen a whopping 80% compound annual growth rate for the past couple of years. Consumers are also accepting it wholeheartedly. Smartphones are the key for the development of this form of payment technology. With greater mobile phone penetration, this figure is likely to go up.

  1. User experience is king 

User experience is everything when it comes to payment processing through mobile platforms. More and more companies are now targeting audiences by offering a smoother and better user experience in terms of navigation, site layout, load time, and processing.

User experience can be defined on the basis of the following three points:

A. Time saving
People also use their smartphones to save their time while performing a routine task. All they have to do is to take it out from their pocket and start using it for many of their daily tasks. A secure app they can trust for payment processing can save their time and energy. But, the website should be designed in such a way that users can perform their tasks in minimum clicks working on an easy interface.

B. Look, feel, and speed

The look, feel, and speed of a mobile site are extremely important when it comes to payment processing. It helps when the interface is clutter-free and offers a smooth user-experience. More and more customers are prompted to make payment through such sites and apps.

C. Load time
Load time is also an important part of user experience. Make sure that the entire navigation is smooth and fluid. Avoid such stuff on the web page that takes a long time to load.

  1. Advancement technology to ensure security

More and more security options are being introduced, thanks to advancement in technology. MasterCard recently experimented with selfies in place of passwords and biometric authentication is also just around the corner. The other technologies that are expected to be prevalent in near future are voice recognition, cardiac rhythm and facial identification. Since technology is always in the process of advancement, the sky is the limit for such ongoing innovations and possibilities.

  1. mPOS adoption

Mobile Point of Sale is also becoming extremely popular with merchants all around the globe. It offers safety and ease of use. As far as mobile payments are concerned, there are certain other benefits that come with them. It is expected that more than 50 million mPOS devices will be installed by 2019, according to ABI Research.  This is roughly 50% of the POS machines already installed at present. Though mPOS will not completely take over POS, but both are likely to coexist for the convenience of users.

  1. AI to handle routine transactions

Artificial intelligence has introduced many innovative solutions related to mobile payment processing. One of the most common AI application used is “chatbots”.  These chatbots are designed to meet the needs of people making mobile payments. Financial chatbots are designed to transfer funds and print basic financial snapshots on receiving simple voice commands.  Verbal instructions can also be handled by AI. It also helps routing number verification and completing ACH payment processing without having to interact with a call centre agent.

Final thoughts
With mobile payment technologies growing further, more and more consumers are likely to make payment using their mobile phones. With biometric and facial recognition, AI and Internet of Things, mobile payments will likely speed up despite challenges.

Five Things Every eCommerce Entrepreneur Should Be Ready For in 2018

Five Things Every eCommerce Entrepreneur Should Be Ready For in 2018

The world of business is a constantly evolving one, more so when it comes to the eCommerce businesses that have gained immense popularity over the last few years. The increasing number of online consumers and the advancements in technology has worked together in making eCommerce businesses one of the most thriving ones today. Consequently, eCommerce entrepreneurs also realize the fact that the competition is more fierce than it was ever before, which is why, they need to keep evolving and focus on long-term objectives.

Every entrepreneur starts a new year with renewed zeal to achieve maximum success for their business. For doing that in 2018, here are the top 5 things you should be ready for now if you are selling online.

eCommerce Automation –

To let your business enjoy a competitive advantage, you must welcome the eCommerce automation that is expected to make operations easier. Automation will also save time and streamline the tasks. For instance, you can automate your eCommerce platform to detect the medium risk orders and forward them automatically to the finance department for review. For high risk orders, the same can be automated to be cancelled. This is just one aspect where eCommerce automation prevents chances of fraud. There can be several other ways to improve the overall shopping experience of your customers by leveraging automated techniques.

Mobile Payments and Wallet Apps –

Payment gateway is an integral part of eCommerce business and the smoother the checkout process, the better is the experience. In 2018, you should be prepared to embrace mobile payments and wallet apps, which does not require your customers to provide all of their personal information at checkout. This concept can work wonders in preventing customers from dropping off at the last moment, due to lengthy checkout processes.

Social Media –

Social media has been there since a long time now but as an entrepreneur, if you have not yet utilized it properly for your business, 2018 is the time to make the most of it. Social media channels are predicted to be huge drivers of eCommerce so much so that Facebook, Instagram etc. might let customers shop directly from these platforms.

More Subscription Box Models –

Although subscriptions have always been a part of an eCommerce business and eCommerce shopping experience, you should be ready for an increased emphasis on the subscription box models. A subscription mentality with at least a part of your product inventory will be crucial for surviving in the eCommerce industry. More the subscription box models you adapt, the higher will be your chance of a competitive advantage with regards to subscription offerings.

Professional Content Development –

Most entrepreneurs have already realized the importance of content that is developed with the interests of the target customers in mind. Content marketing is going to have a lot of impact in the ecommerce business scenarios. So, in 2018, you should focus more on personalized, engaging and premium content being developed by experts in the field. Whether it is a video about your product and service or targeted ads on the social media apps or perhaps, blogs and articles on emerging trends and so on, content will continue to create an indelible mark.

While these are some of the most important trends and strategies that entrepreneurs should be ready for in the coming year, there will definitely be many more to join them. The best way is to understand your business and its unique requirements to be able to make the most of the advancements in technology and the way internet works. Also, it is advisable to seek the guidance of expert professionals to enable your eCommerce business to move in the right direction.

5 Key Factors Driving Online Payments in UAE

5 Key Factors Driving Online Payments in UAE

The recent surge in global online payments has been pretty evident across the world and the growth has been driven by stupendous growth in e-commerce transactions done in the Middle East. In fact, in one of our earlier posts, when we clearly stated that as per Capgemini’s World Payments Report 2017, the global growth in non-cash transactions has been driven by CEMEA (Central Europe, Middle East and Africa) & Emerging Asia, with UAE paying a leading role as the biggest contributor to growth in e-commerce and online payments.

The following 5 factors are driving the growth of online payments in UAE:

Increased Card Penetration:

The number of cards being used for any transaction has in fact risen to 10% of all transactions in the UAE and most of the transactions are being done online.

Growing Tourism:

UAE attracts a whole host of tourists and they always tend to pay online for most of their services like hotel booking and air ticketing.

Large upwardly mobile expat population:

The UAE has long been a global melting pot which is a testimony to the large expat population who are more tech savvy and purchase online.

Macro-economic scenarios:

The flattening of oil prices has meant that the country is diversifying its economy and focusing more on new age sectors such as e-commerce which has been aided by robust internet and smartphone penetration in the country.

Demographic Dividend:

The UAE has a relatively young population. Roughly about 24% of its 9 million+ population are below 24 years of age. Therefore it comes as no surprise that significant population in the UAE transact and pay online and pay online.

If you are interested in more such insights, feel free to subscribe to our blog alerts. Moreover, do not forget to sign up for a free demo of PayTabs, to understand how PayTabs can add value to your business.