How Do Bluetooth Mobile Payments Work?
Mobile payments that use Bluetooth rely on radio waves to transmit data. Retailers who want to accept mobile payments and incorporate in-store advertising and marketing campaigns can do so easily by adapting their current terminals with a small easy-to-install Bluetooth SIM. Mobile payments can also be prompted without adapting terminals. Bluetooth Beacons, small battery-powered devices mounted on surfaces throughout a store, can work together with applications to prompt payments using mobile. Why would retailers bother with giving customers this option? Mobile payments make businesses more successful through value-added services such as mobile loyalty, mobile offers and redemption, big data reporting and analytics. When you can greet customers, send contextual offers based on in-store location, hand out digital coupons, accept survey information, and gamify the shopping experience with loyalty points, all using the same Bluetooth Beacon infrastructure, it’s hard to justify not taking the steps.
Check out Amazon Go – they’ve taken payment automation to the next level, giving us a glimpse into what the future of retail might hold.
Is Bluetooth a Better Mobile Payment Standard?
BLE has advantages over other mobile payment standards. Bluetooth Low Energy, the current standard, has fast processing times. It takes less than 0.003 seconds for a BLE transaction to be processed. For some perspective, near field communication (NFC), a popular mobile payment standard, takes 0.1 second to process payments.
Here is the biggest difference. Bluetooth Low Energy Mobile Payments can eliminate lines. BLE Beacons and sensors are able to form connections with more than one device at a time. Customers who use BLE would not have to wait for an available NFC-enabled terminal to become available.
Commerce-Enablement Using Mobile Devices
The online cloud-platforms which facilitate mobile payments are safe and secure. They ensure that sensitive consumer credit card information is not stored on a merchant’s POS system. As consumers become more comfortable with viewing their phone as not just a phone – but a launchpad to interact with the Internet of Things, retailers will see mobile payments for their true potential – as marketing platforms and effortless avenues for data extraction. Mobile payment systems, especially Bluetooth-powered solutions, create a customer-centric experience which fosters brand loyalty. Mobile Payments and In-Store Applications are the bridge needed for brick-and-mortar retailers to compete with online commerce giants.