Mobile payment platforms are apps or services that allow you to make or receive payments using your smartphone or other devices. They can be convenient, fast, and secure, but did you know they can also help you save money? In this article, we'll show you how you can use mobile payment platforms to reduce your fees, earn rewards, and manage your budget.
One of the benefits of mobile payment platforms is that they often charge lower or no fees for transferring money, compared to traditional banks or other methods. For example, if you use PayPal, Venmo, or Zelle, you can send money to friends or family for free, as long as you link your bank account or use your balance. If you use a debit or credit card, you may have to pay a small fee, but it's usually lower than what you would pay for a wire transfer or a check. You can also save money on international transactions, as some platforms offer competitive exchange rates and low fees for sending money abroad.
Another way to save money using mobile payment platforms is to take advantage of their cash back and rewards programs. Many platforms offer incentives for using their services, such as discounts, coupons, or points that you can redeem for gift cards or other perks. For example, if you use Cash App, you can get a boost that gives you instant cash back when you use your Cash Card at certain merchants or categories. If you use Google Pay, you can earn rewards for completing tasks or referrals, and use them to get cash or donate to causes. You can also link your mobile payment platforms to your credit cards or loyalty programs, and stack up your rewards.
Many mobile payment platforms offer cashback rewards on purchases, points for specific brands, or discounts with partner merchants. Look for platforms that align with your spending habits and maximize these features.
A third way to save money using mobile payment platforms is to use their features to manage your budget and spending. Many platforms allow you to track your transactions, set spending limits, or create savings goals. For example, if you use Apple Pay, you can see your spending summary and trends in the Wallet app, and set up Apple Cash Family to control how much your kids can spend. If you use Acorns, you can automatically invest your spare change from your purchases, and grow your savings over time. You can also use apps like Mint or YNAB to connect your mobile payment platforms to your bank accounts and cards, and get a holistic view of your finances.
Mobile payment platforms can be more than just a convenient way to pay or get paid. They can also help you save money by avoiding transaction fees, earning cash back and rewards, and managing your budget and spending. By choosing the right platforms for your needs and preferences, and using them wisely, you can make the most of your money and achieve your financial goals.
Mobile payment platforms aren't only tools for payments but also financial management tools. Some platforms allow you to set spending limits for specific categories or your overall budget. This can help you stay mindful of your spending and avoid overspending.
(a) Implementing mobile payments allows businesses to offer digital receipts, an option that has proven popular among environmentally conscious consumers. This shift not only aligns with a growing societal preference for sustainable practices but also cuts down on the cost of paper and printing. In one case, a boutique I advised transitioned to digital receipts, resulting good annual savings in paper and printer maintenance (b) Mobile payment systems often integrate seamlessly with inventory management software, providing real-time data on stock levels and sales trends. This integration enables businesses to make informed purchasing decisions, reducing the likelihood of overstocking or stockouts.
let's understand this by taking the eg. of Rohit a merchant owning a SuperMarket. [country India, time=Diwali=Crowded] It's Diwali, there are long queues for checkout at Rohit's store. Near his Supermarket there is Rick's Supermarket (assume both supermarkets have similar offerings) Frustrated standing in queues @ Ramesh's store, some customers leave his store to visit Rick's store. This phenomenon is called "Churn of Customers due to queue at POS" At Rick's store checkout is super fast and there is no long queue as the floor agents of his store are carrying a Paytm Mobile POS and checking out customers will full Shopping Trolleys before POS queue. Thus mobile pos reduces loss due to churn of customers and makes cash handling cost = 0
Look for deals and coupons: Some mobile payment platforms partner with merchants to offer exclusive deals and coupons accessible through the app. Be mindful of: Transaction fees: While many everyday transactions are free, some platforms may charge fees for specific transactions like money transfers or peer-to-peer payments. Be aware of these fees and avoid unnecessary transactions that could incur them.