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Mobile Payment Channels Explained

Convenience is key when you’re looking to attract customers both online and offline. In order to increase your reach and retain as broad an audience as possible, you’ll need to offer a variety of omnichannel payment methods.  From direct bank transfers and major credit cards to EDC/POS terminals and internet payment gateways, there’s a host of payment channels to consider.

The mobile payment channel is one payment channel that shouldn’t be overlooked. A mobile payment channel provides your customers with a quick and easy way to pay you via their mobile banking app or from their mobile digital wallet.

In this post, we’ll discuss the benefits of a mobile payment channel along with examples:

What are the benefits of a mobile channel payment solution?

A mobile channel payment involves an app being linked to a bank account where the money is held. The linked account could be a credit card or debit card connected to a bank account. This method of payment offers several benefits:

  • Security

  • More places to pay

  • Speed of payment 

  • Ease of use

What is mobile channel FT payment and how does it work

Mobile channel FT payment stands for “funds transfer” mobile payment, wherein funds are moved from the account of one party (the remitter) to the account of another (the beneficiary). The reference “mobile channel FT” on a bank statement means that the funds have been made using a mobile banking app.

Banks are now making it easier to transfer funds on mobile phones and many consumers now use their banking app to make deposits, transfer money, pay bills and more. When a customer downloads a payment app to their smartphone, they link their preferred source (e.g., a credit card, debit card or bank account) to send money. Once the information is set up, customers can then use the app for payment, which can be online or at point of sale for contactless payments.

A company can accept payments by installing the same app on their computer or smartphone. Some apps are specific (consumer to merchant or merchant to consumer) while other business payment apps are able to accept payment from multiple types of consumer payment apps. Furthermore, some apps only work for specific devices, e.g., Apple phones.

Example: mobile channel FT payment Barclays

Barclays was the first bank in Europe to offer a person-to-person mobile banking payment channel. Barclays Pingit allowed users to send and receive cash to anyone with a bank account (in the UK) and a mobile phone number without having to share bank details. This made sending payments to friends (i.e., to share the cost of a meal or borrow/repay small amounts of money) easy. The Pingit mobile channel FT payment Barclays has been recently replaced by the Barclays mobile app.

Nowadays, the majority of banks offer a way for customers to pay on their phones via a mobile app. Alternatively customers can pay with other mobile payment systems, including Apple Pay and Google Pay.

Aim to offer omnichannel payment methods

Customers are demanding more convenience when they’re purchasing online, so it’s essential to offer various omnichannel payment solutions. Given its popularity, a mobile channel payment option should be high on your list of payment methods to consider.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.

Over 70,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

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