Starfinancer

THE electronic payments in shops they are becoming more and more popular, but using ATMs or credit cards to shop online or pay for restaurants is also a thing of the past. The pandemic has highlighted the advantages of making purchases without touching money of contactless methods with the smartphone. A simple app is enough to pay and manage money and get additional services such as cashback, installment payments, instant loans and investments.

The success of the electronic payment it is due to the fact that they are much simpler, cheaper and safer than credit cards. The apps to pay take advantage of the recognition of biometric parameters or passwords, and can replace cash transactions simply by bringing the phone close to the pos terminal or with a click. What are the ways to use the smartphone as a wallet or piggy bank?

Index

Electronic payments vs cash

The idea of ​​replacing physical money with i electronic payments for many years it has been discussing and polemicizing traders, politicians and citizens. ATMs, credit cards are traceable and are used to combat tax evasion, while paying with coins and loose change has always been considered more convenient for the elderly and those who do not have access to new technologies. The apps to pay have mixed up the two factions, in the sense that their use appeals to consumers.

As we’ll see pay with your smartphone it is an enormously growing phenomenon also in Italy with the spread of cell phones with NFC technology, but it has already been a reality for several years in countries such as China, Japan, Korea, Philippines, Kenya and the United States. The Chinese were among the first to eliminate cash in transactions. 400 million people use electronic payments in China. Zhifubao Alipay has 54% of the Chinese market, while Weinxin Wechat pay takes the rest of transactions worth over $ 60 billion a year.

All app to pay with your smartphone used in China are based on Qr code. To pay the bill at the bar, restaurant or any shop, just frame a label and press ‘pay’ on your smartphone. Taxis, car and bike sharing rental services and even street market stalls have displayed a QR code and make payments with a portable Pos even for a few cents.

Electronic payments in Italy

According to the Innovative Payments Observatory of the School of Management of the Politecnico di Milano, even in Italy with growth of electronic payments in recent years it has been over 20%. There has even been a 100% increase in the use of apps to pay with the smartphone. Technological innovation based on comfort and safety is the basis of success. At the European level there is a new directive called Psd2 which aims to simplify the system and standardize the rules.

While studying cards with digital sensors and with dynamic CVV (Card verification value) that change over time, the revolution of electronic payments and payment apps involves hi-tech giants and all major credit institutions. Not only does it oblige the elderly to equip themselves with the latest technological tools, but also traditional banks to renew themselves profoundly. Branches and old banks are giving way to web designers and social media managers.

According to an Accenture study, traditional banks’ commission revenues are set to decline. 30% of Italians use smartphones to manage money and go to the bank only to ask for information. Google or Facebook do not compete directly with banks, but offer services to retain users by obtaining their data in exchange. Knowing your spending habits and analyzing shopping behaviors allows you to profile users and propose advertising for ad hoc products and services.

App to pay by card

The app to pay are a further evolution of electronic credit card payments. To use them you need to register your credit or debit cards on the appropriate applications. They work with NTC (Near Field Communication) technology which, through a radiofrequency signal, communicates the phone chip with the label (tag) of the goods or of the Pos (Point of Sale) device in the shop’s cashier.

For pay with your smartphone in contactless mode, the maximum distance between the device and the tag must not exceed 4 cm. For payments over 50 euros, a security pin is required. Mobile Proximity Payment (MPP) systems have hundreds of millions of users around the world. Among the most popular are Google Pay, the Apple Pay service and the Samsung Pay counterpart. Facebook has also developed a payment system, available for now only in America, which also allows you to divide the expenses at the restaurant.

NFC technology for i contactless payments it is not only used by smartphones but also by smartwatches and electronic bracelets. To pay it is necessary to include the user’s credit card in the watch’s e-wallet. Google Pay is a multi-brand used by Mobvoi, Huawei, Amazfit, Fossil or Suunto, while the other devices integrate specific payment platforms. Biometric confirmation or pressing a button on the device on your wrist is required to complete a payment.

Debit on current account

Who does not have credit card or NFC technology on your phone, you can use apps to pay connected to your current account such as Satispay, Paypal or Bancomatpay. By activating the geolocation, they directly show the store in which to make purchases and to pay it is sufficient to frame a QR code. The virtual wallet can be filled with figures ranging from 25 euros to 500 euros. Satispay provides a cashback that reimburses part of the expenses.

Paypal also allows you to pay in three interest-free installments and in the US to pay in cryptocurrency. Bancomat Pay can be associated with a prepaid card. In addition to carrying out transactions of products and services in stores, applications such as N26, Revolut, Hype, Yap, Oval and Vivid, offer the possibility of making investments and withdrawing with the smartphone thanks to agreements with Italian banks.

For withdraw with your smartphone the applications of some credit institutions allow you to select the amount of the cardless withdrawal on the app. Once in an ATM, to collect the banknotes, simply frame the QR code on the screen. Other banks offer the possibility of withdrawing cash with smartphones even in supermarkets and paying in installments, or to make personalized savings programs by setting aside a certain monthly amount.