Tuesday, July 03, 2018

Two technology for cashless payments

There are two technologies to operate a cashless payment system:

a) Using mobile phone and QR code
b) Using a smart card, like EZ Link.

The QR code method requires the payer and payee to have a mobile phone. While most adults have a mobile phone, many young children do not have a mobile phone with data. So, this method excludes children and some old people who are not familiar with mobile phone.

The smart card method has a low cost to the customer (payer). It requires the merchant (payee) to have a device that can read the smart card and also handle the transaction. This device needs to be connected to the server.

It is possible to develop a mobile app that can act as the capturing device. The payee enter the amount and the payer taps the card on the device to complete the transaction.

The mobile phone may need to have a NFC reader. Only certain models have this capability.

The smart card method seems to be easier to use and has a lower operating cost. The disadvantage is that the payers are not able to transfer money from one person to another, e.g. if they wish to split the bill for a meal.

Which technology is better? Which is more likely to be used?

I will go for the smart card method. It can be EZ Link (if they are interested to market this service actively to retail outlets) or another company that issues a stored value card similar to EZ Link.

Tan Kin Lian

2 comments:

Yujuan said...

Better to start with both mobile phone with QR code, and smart card like EZ Link.
The former for working adults, the latter for kids and seniors.
Moblie QR is just like handing your kids a supplement credit card at their disposal for quick money transfer payments, may not be mature enough to control larger impulsive payments to dubious payee.

hiren patil said...

It's a great blog about cashless payments which can be done with ease thanks for sharing the blog to know more about Mobile banking..
Mobile banking

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