As our world grows increasingly digital, the way we conduct business, shop for products, and communicate with one another has evolved, particularly through the expanding realm of mobile devices. This widespread adoption of smartphones and tablets has revolutionized the payment landscape, enabling businesses to leverage these devices for seamless transaction experiences. Consequently, this has led to the rise of two distinct types of payments conducted via smartphones and tablets: in-app payments and in-person payments.
In-app payments refer to transactions made within a mobile application to access premium content or services, make purchases, or pay bills. These transactions do not require the customer or the merchant to be physically present, and funds are transferred digitally. On the other hand, in-person payments involve transactions taking place between a customer and a merchant who are physically present at the point of sale (POS).
In this article, we will focus on in-person payments and explore various strategies for making these transactions more efficient by reducing the dependency on multiple devices, ultimately enhancing the experience for both merchants and customers.
Simplifying payments: the delivery example
The growth of mobile apps has transformed the relationship between customers and merchants, making everything from retail to transportation services available with the swipe of a finger. However, receiving payment for in-person transactions has remained relatively inconvenient and inefficient, as exemplified by the parcel delivery business.
In traditional parcel delivery services, customers may prefer to make a payment for the services at the time of delivery, making it crucial for delivery personnel to have an efficient payment processing system in place. However, this process requires two separate devices: one for scanning the parcel's barcode to track its delivery and another to process the payment using a payment terminal. This setup is not only cumbersome and inconvenient, it also increases costs for the business.
Integrating the two functions—payment processing and barcode scanning—into a single device offers a solution to this efficiency challenge. Businesses can then streamline their operations and enhance the overall experience for both their customers and merchants. In the following paragraphs, we will discuss how technologies like mobile POS solutions can address this issue and revolutionize in-person payments.
Payment process description
For merchants who want to integrate in-person card payments into their existing mobile app, it's necessary to understand the payment processing system. When a customer uses a credit card as a payment method during an in-person transaction, the transactional details are sent to a payment processor.
The payment processor validates the data and processes the money transfer. It fetches encrypted data, checking if there is enough money to make the purchase with the issuing bank. Once validated, the transaction data is sent to a credit card network, which checks the transaction against the card details and either approves or denies it. If approved, the credit card network facilitates the transfer of funds from the customer's bank to the merchant's bank account.