Here’s how the three forms of mobile payments work, as well as the benefits they can provide to small businesses and their customers:

• Mobile payments with a credit card:

Customers can also pay with a credit card in a firm’s physical storefront, or at remote events such as trade exhibitions, festivals, or even at the client’s home or place of business, using this type of mobile payment option. Despite the conveniences of the point of sale, the customer must still pay with a wallet or card.

• Mobile wallets

Customers who use mobile wallets, on the other hand, can leave their conventional wallets and cards at home. The consumer can use the mobile wallet’s app to pay at the point of sale using a mobile device after establishing a mobile wallet and uploading the forms of payment he or she wants to keep securely kept in it.

• Digital wallets

Digital wallets, like mobile wallets, keep a registered user’s financial and credit card information securely, eliminating the need to enter card information or show a physical card to a merchant. Although digital wallet technology is sometimes referred to as the “forefather” of the mobile payments movement, it is not created specifically for use on mobile devices.