With technology making it easier for customers and merchants to do business with one another online, new payment methods have been developed that help streamline the process. The days of carrying around multiple credit cards, cash, and checks to stores when you go out shopping are coming to an end as companies and financial institutions introduce the future of payments to the global market. Understanding these new payment options and how to keep them secure and in compliance with Know Your Customer rules will help businesses and customers usher in a new era in our economy.
Google Wallet is a mobile payment system that allows users to store various pieces of payment card information to be accessed by a mobile phone when it is time to pay. The app encrypts all of the user’s account numbers while freeing up space in wallets, purses, and pockets. In addition, it is more secure than carrying around multiple cards that can get lost or stolen. According to Mashable, Google Wallet went live in September, 2011, and is accepted in over 300,000 locations.
Pay with Email
When you link your bank account to your Google Wallet, you are able to send and receive payments using Gmail. It is a fast and free way to transfer money to family members, as well as pay for goods and services. Users are also able to easily send money to those without a Gmail address, using their Google Wallet or Google Wallet prepaid account.
Coin uses the same concept of Google Wallet, with the exception that you still have a physical card to hold onto in your wallet. The Coin Payment System combines up to eight cards, including credit and rewards cards, into one swipe-able Coin card that shoppers can use at the store. This eliminates the need for remembering to bring various forms of payment from home.
Bitcoin and Mobile Payments
Bitcoin is a completely digital currency that does not require the use of banks or middlemen. Users open an account, and can use bitcoins to anonymously and quickly pay for merchandise. In addition, mobile payments apps have been increasing in popularity over the last few years. Typically, mobile systems have safeguards in place for identity proofing to ensure transactions are accurately processed.
Prepaid cards look like a debit or credit card, but they are not linked to a bank account. These cards are commonly used as “pay as you go” payment methods sponsored by credit card companies like Visa and MasterCard, and they are reloadable.
Ensuring Customer Protection
While companies want to stay at the forefront of technology and provide customers with new ways to pay conveniently, it is also important to ensure that private information is not at risk. Identity verification systems allow businesses to establish that they are working with legitimate customers while also deterring fraud. These dynamic systems can be put in place to meet global compliance regulations and ensure that revenue is not lost due to malicious activities.
IDology, Inc. was founded in 2003 and provides innovative technology solutions for identity verification in customer-not-present situations. The IDology platform serves to help monitor and stop fraudulent activity while also driving revenue, decreasing operating costs, and meeting compliance regulations. IDology is based in Atlanta, GA.
“Google Wallet.” Mashable. n.d. Web. 28 Apr. 2014.