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Mobile Payments: A Guide to Paying with Your Mobile Phone

written by Shane "Geek" Lundberg November 13, 2015

Paying with your mobile phone is quick, convenient, and becoming more and more widespread. Customers are incentivized to pay with their phones because of this ease of use. It saves time, which is something we can all appreciate. However, before paying with your phone, make sure you know the facts. Here are several key pointers—consider them a quick guide to paying with your mobile phone.

Advantages over Plastic Cards

Your smartphone links to your card when it comes to paying with your mobile phone. Hackers sometimes will narrow in on a credit card swipe (if the merchant isn’t protected by the Payment Card Industry Data Security Standard the way the software at www.fattmerchant.com ) because it is stored inside the retailer’s database. Mobile payments send a security code that is useless to hackers because it is a one-time deal. The bar code is sent once, making it as unique and inimitable as a fingerprint. Note: this hacking is unlikely if there are credit card protections in place such as those mandated by the PCI DSS.

This industry is expected to grow—A LOT.

According to Forrester Researcher, a market and tech research company, $4 billion was spent by consumers in the form of mobile payments in 2014. Forrester predicts that, in 2019, that $4 billion will increase to $34 billion. That is a huge amount of money in a comparatively small amount of time. This massive growth and expansion are indicative of the fact that paying with your mobile phone is about to become more normative, and companies like Fattmerchant are out in front of the trend with merchant software that allows you to do so. Also, the growth in the industry is likely to be accompanied by increasing benefits, as more companies move into this new paradigm and seek to give consumers advantages and incentives to pay with their mobile phones.

Make Sure Retailers Accept Mobile Payments

Before paying with your mobile phone, you need to make sure that the retailer you are about to purchase from accepts mobile payments. Though it might seem counterintuitive to think that companies would reject the convenience that mobile payments provide, it does happen and it’s important to check up on the company you’re about to purchase from to ensure that they accept mobile payments. Once you know definitively that they do, you can go right ahead.


Safety concerns about any type of burgeoning service are to be expected. According to the Federal Reserve, a little over 10% of consumers paid using a mobile payment processor. With the spotlight that this industry is gaining, there are also questions. Some of these safety concerns can be assuaged by the fact that many mobile payment apps actually have GPS on them, which allows the retailer to know where you are and to look out for any shady payment action (for example, the GPS says you’re in California but someone halfway across the world is making a payment—that’s suspicious). The extra data gleaned from mobile payments isn’t a bad thing. More data does not mean less security, especially in this case when the data can be utilized to protect you and keep your information confidential and secure. Mobile phones can be extremely useful and you can learn more about the numerous things they can do, such as tracking, online.

Hopefully, this quick guide to paying with your mobile phone will assist you in making the switch from plastic, if you decide to. One thing about living in such a technologically-advanced time period is the fact that more information is available and you can understand the benefits of something that may seem novel or foreign to you (i.e. paying with your phone). Mobile payments are changing the consumer game, and as they become more popular, there will certainly be other advances in the industry to accompany them.

Lautaro Martinez is a freelance writer and small business man who enjoys sharing tips and insights into running a company effectively. If you would like to learn more about Lautaro, you can check out his Google+ profile.

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