The revolution in mobile payment transactions

Just the other day, I parked in a metered spot and after digging through every nook and cranny of my car, discovered that the meter actually accepted major credit cards instead of those elusive little dimes I always seem to lose.
This is just one example of how credit card technology is transforming mundane daily transactions, making them more convenient than ever before.
Now imagine how much more convenient transactions would be if they could be made using one’s mobile phone.
Take PAYware Mobile for instance: using only a slip on encryption sleeve and an easily downloadable app, iPhone 3G or 3GS users can accept payments by swiping a credit card to their phone. The set also includes a built-in stylus for signature-required transactions.

Using PAYware Mobile eliminates the need for cash registers and allows the merchant to accept payment virtually anywhere. The firm also apparently has plans to bring its wares to Blackberry, Windows Mobile, and Android in the near future, which means most anyone armed with a smartphone could potentially use it.
PAYware Mobile isn’t necessarily a pioneer in using handheld technology to accept credit card transactions, but it does appear to be the current frontrunner. The kit is even being sold in all Apple retail stores and online at Apple.com.
On a recent visit to an Apple Store, I noticed no registers; instead, the sales associates swipe your card using their iPhone and a receipt is emailed almost instantly.

While this may sound a little scary, questioning the quality of PAYware Mobile’s security is a futile effort.
After all, like every VeriFone product, PAYware Mobile is tested and validated by a third party to insure it meets the regulations set by the PCI Security Standards Council.
The card information is encrypted upon delivery to the credit card company and no information is ever actually obtained by the iPhone or its user.
Security? Check. Ease of use? Check. From a consumer’s standpoint, PAYware Mobile is flawless in offering the full package in transactional convenience.
But what about the merchants who will actually need to decide whether or not PAYware Mobile makes fiscal sense to them?
After all, time is money and if somehow less time at the transaction stage costs merchants more money, one would have to assume quality needs to take precedence over convenience.
Fortunately for merchants with PAYware Mobile accounts, that may not be the case.
PAYware Mobile allegedly reduces costs of accepting credit cards by 30% and can apparently increase purchase amounts by up to 16% by offering customers a preferred payment method. Compare that to what PAYware Mobile charges – a fee as little as 2% of the total sale – and it would appear merchants are getting a rather sweet deal. Of course, users should note that there is a $49 activation fee, but that’s just a one off payment.
With more and more people carrying smartphones around, the move towards mobile payments makes perfect sense.
Retail stores like Apple are making the change already, but they aren’t alone in this transition. Taxicab companies and even small businesses are relying on credit card transactions as their primary source of income and using technology like PAYware Mobile should help them cut costs while maintaining consumer security.
Indeed, it may only be a matter of time before your high school-aged neighbor accepts payments this way after mowing your lawn.