The mobile phone industry has evolved a great deal. Today, it’s safe to say that high-end smartphones are faster and more efficient than an ‘average’ PC. But one area that is less talked about is mobile phone payments.
The universal presence of smartphones and tablets has seen an upsurge in innovative payment solutions. So, read on to understand the history of mobile payments and how they work.
Although most people feel like they can’t live without their phones, these devices haven’t been around for long. The first hand-held mobile phone was launched not long ago in 1973 by Motorola. Back then, these phones were called 0G or Zero Generation phones. Just think of it as an earlier version of 2G, 3G, 4G, and 5G phones.
But it was in the early 2000s that mobile phones exploded into the scene. That’s after Nokia launched the legendary 3310, which sold over 120 million units. Then, in 2002, the company launched the 6750, becoming the first camera smartphone in Europe. Moreover, the first iPhone and Android were released in 2007 and 2008, respectively.
With that in mind, the first mobile payment was made in 1997 after Coca-Cola introduced SMS purchasing in its vending machines. Then in 1998, PayPal was launched, marking a significant milestone for the online banking industry.
But, it didn’t stop there; Apple introduced Apple Pay in 2014, with Android Pay becoming available in 2015. So, it’s a fair assumption that mobile payments haven’t been around for that long.
Mobile payment wouldn’t be where it is today if not for some crucial technological advancements. First, mobile phone penetration has become so widespread these days. A good example is Sub-Saharan Africa, where traditional banking penetration stands at 25%, whereas mobile reach is more than 60%. In Kenya, a whopping 86% of households use mobile payments. Now, these numbers prove that traditional banking has to go mobile or risk oblivion.
In addition to mobile popularity, widespread internet penetration has helped matters considerably. Currently, 4G internet has become commonplace, with 5G rollout already gathering pace. As if that’s not enough, 6G research is already in the pipeline. These factors ramped up together create the perfect environment for mobile banking to thrive.
There are three main categories of mobile payments. Below is a brief look:
Mobile payments have evolved quickly, allowing players to make quick transactions at the best mobile casinos. Note, however, that the best mobile payments are not only limited to smartphone and tablet use. Payment solutions like e-wallets and Apple Pay allow quick transactions on computers. So, pay and play remotely on your mobile phone or laptop.