How people pay for things is changing fast. What used to be a niche option — tapping a phone instead of pulling out a wallet — has quickly become something customers expect everywhere. For business owners, this shift raises practical questions: which mobile payment options make the most sense, how do they actually work, and what are the real advantages or potential downsides? This guide takes a closer look at mobile payment systems, the technology behind them, and best practices to help you decide which solutions fit your business and your customers.
What are mobile payment solutions?
Mobile payment solutions let people pay with their smartphones or other connected devices instead of cash or physical cards. These systems typically use digital wallets, dedicated payment apps, or bank-backed platforms to process transactions. For businesses, offering mobile payments is a way to meet modern customer expectations, cut down on friction at checkout, and even reach buyers in international markets.
The numbers show how big this shift has become. In the USUnited States, proximity mobile payment transactions hit USD$670.5 billion in 2024 and are projected to top $1 trillion by 2027. On a global scale, more than 4.3 billion people used mobile wallets in 2024, representing over half of the world’s population. By 2029, that figure is expected to climb close to six6 billion users. In other words, mobile payments are no longer a trend — they’re becoming the default.
How mobile payments work
Mobile payments follow a structured process:
- Setup – A user downloads a mobile payment app or wallet, links their cards or bank accounts, and completes authentication.
- Authentication – Payments are verified through biometric data (fingerprint, facial recognition), PIN codes, or one-time passwords.
- Secure transmission – Tokenisation and encryption replace sensitive payment information with secure, one-time identifiers.
- Processing – The mobile payment platform connects to issuers and acquirers for authorisation.
- Completion – The merchant receives confirmation of the transaction.
Types of mobile payment technologies
Different mobile payment systems use varied technologies, each supporting specific types of transactions.
NFC (Near-Field Communication)
NFC enables contactless payments where a customer taps or hovers their phone over a terminal. Popular examples include digital wallets like Apple Pay, Google Pay, and Alipay. These mobile payment platforms typically link to bank cards or wallets, supporting in-store contactless payments with high levels of convenience and security.
QR code
QR code payments are widely used across Asia, Latin America, and increasingly in Europe. Customers scan a QR code to authorise and complete a transaction. Businesses benefit from lower infrastructure costs since they can generate dynamic or static codes without advanced POS hardware.
Bluetooth and beacon technology
Bluetooth-based wireless payment solutions allow a merchant’s terminal and a customer’s phone to connect automatically in proximity. This technology supports both in-store experiences and drive-through or fuel station payments, creating speed and flexibility.
Common types of mobile payment solutions
Mobile wallets
Mobile wallets allow users to store card or bank account details securely on their devices. They are widely used for both contactless payments in-store and for online checkouts.
Mobile banking apps
Banking apps provide direct access to accounts for transfers and payments. Many now include mobile payment features that allow contactless use in-store or integration with QR-based payment systems.
Peer-to-peer (P2P) payments
P2P services such as Venmo, Cash App, and Zelle let users transfer money between individuals using a mobile phone number or email. Increasingly, these P2P platforms are being integrated with merchant services to support small business payments.
Carrier billing
Carrier billing allows charges to be added directly to a mobile phone bill. It is often used for digital content purchases such as apps, music, and games, particularly in regions with lower card penetration.
Buy now, pay later (BNPL) apps
BNPL providers such as Klarna or Afterpay offer deferred or instalment-based mobile payments. These mobile payment options appeal to consumers who want flexibility in managing spending.
QR-based wallets and super apps
In Asia and parts of LATAM, mobile payment systems are often integrated into super apps like Alipay, GrabPay, and Kakao Pay, combining payments, messaging, transport, and commerce in one ecosystem.
Proximity vs remote mobile payments
Mobile payments can be grouped into two broad categories:
|
Proximity payments |
Remote/online payments |
|
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Location |
Buyer and merchant are in the same place |
Buyer and merchant are in different locations |
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Examples |
Apple Pay, Google Pay, Samsung Pay, Antom Entry Code, Order Code, User-Presented Code |
Mobile checkout, subscription billing, Scan to Link, Auto Debit, EasySafePay |
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Technology |
NFC, QR codes, Bluetooth, barcodes |
APIs, SDKs, tokenisation, digital wallets, recurring billing tools |
|
Use cases |
Retail checkout, self-service kiosks, restaurants, transport |
E-commerce sites, apps, streaming services, SaaS platforms |
|
Authentication |
Typically biometric, PIN, or OTP at POS |
One-time authorisation, recurring tokens, password-free flows |
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Speed |
Instant transaction confirmation in-store |
Instant or near-instant, depending on method and network |
Benefits of mobile payment solutions for businesses
Enhanced UX
Mobile payments shorten the payment process, reduce cart abandonment, and support localised options. In 2024, digital wallets already accounted for 39% of North American online payments, surpassing credit cards, and are expected to represent more than half of online payments by 2030.
Cost efficiency
Mobile payment processing can lower fraud exposure, reduce cash handling, and decrease operational complexity. Local acquiring and wallet adoption also reduce cross-border transaction costs.
Revenue optimisation
Mobile wallets and related solutions support loyalty features and retries. Antom’s Revenue Booster, for example, automatically retries failed transactions at optimal times to recover lost revenue.
Security and compliance
Mobile payment systems use tokenisation, PCI DSS compliance, and advanced risk controls. Providers like Antom offer layered protection via Antom Shield, which includes fraud detection, rule-based screening, and risk scoring.
Omnichannel enablement
Mobile payment platforms make it easier for businesses to unify online, mobile, and in-store sales. That consistency helps create a seamless brand experience, no matter where a customer decides to pay.
Global reach and inclusion
With support for multiple currencies and hundreds of wallet integrations, mobile payments open doors to customers in Asia, LATAM, and Europe. Adoption is growing quickly — in Western Europe, more than 20% of consumers were already using mobile wallets weekly in 2024 — and the trend shows no signs of slowing.
Challenges and risks of mobile payment systems
Security threats
Cyberattacks, phishing scams, and data breaches remain a constant concern in digital payments. Beyond the direct financial loss, a single fraudulent transaction can weaken customer trust and damage a brand’s reputation.
Compliance burdens
From Europe’s upcoming PSD3 regulations to Asia’s strict data-localisation requirements, businesses often face a patchwork of compliance standards that demand ongoing attention.
Integration complexity
Offering more than one mobile payment option can be tricky. It means coordinating wallets, APIs, and banking systems — each with its own technical requirements — which can strain IT resources.
Adoption barriers
Not every customer is eager to switch. Some face device limitations, while others stick to old habits or get turned off by clunky app experiences. In fact, only about 16% of US consumers used smartphones for in-store purchases between 2023 and 2024.
ROI considerations
The business case for mobile payments isn’t just about convenience. Companies need to balance upfront integration costs against long-term benefits, often weighing both CapEx and OpEx before moving forward.
Privacy and data governance
Customer data is at the heart of mobile payments. Mishandling it can trigger legal issues and destroy trust, which is why clear policies on storage, sharing, and transparency are critical.
Best practices for optimising mobile payment integration
Prioritise UX and accessibility
Keep payment flows simple, responsive, and available in local languages. Offer a wide range of payment options.
Support multiple platforms
Ensure compatibility with Android, iOS, and mobile web to reach the broadest base.
Maintain strong compliance hygiene
Adopt solutions that are certified and keep pace with changing regulations like PSD3.
Manage ROI and cost-to-serve
Use analytics to monitor payment performance, approval rates, and cost of processing across markets.
Vet your provider carefully
Select providers with SLA-backed performance, proven reliability, and regional expertise.
Conclusion
Customers now expect to move seamlessly between online shops, apps, and physical stores without stopping to think about how they pay. For businesses, keeping up means more than adding another payment button. It’s about building systems that are secure, adaptable, and ready for the next wave of consumer habits.
That’s why the partners you choose matter. Global payment service providers such as Antom show how integrated platforms can bring mobile, in-store, and online payments together under one roof. The result is more than smoother checkouts. It’s a payment infrastructure designed to grow with your business and earn customer trust over time.
