Cardholders can make payments on the go
The UK is soon to have a new payment system launched which will enable small and large businesses alike to accept debit and credit card payments via their mobile phone.
Smartphones can now connect to the mPowa service which has a reader and app which is reached via Bluetooth or plugged in.
Once the reader is connected to the smartphone, it is used to swipe the magnetic strip of the credit or debit card. It can also be used for the chip and pin device as the card is inserted and the customer can then enter their PIN digits.
This system will allow customers to make payments of their choice when on the move.
The mobile phone app can be downloaded for free on any iPad, iPhone, Blackberry, Windows and Android devices.
The app will monitor the different payments made by card, cheque and cash and each transaction will be processed securely.
According to mPowa, the service will benefit businesses, including sole traders, because it allows payments to be made immediately and there is no need to wait for invoices to be paid or issued.
With many businesses struggling because of a number of debts, this device is expected to receive a warm reception among businesses on the brink. In total, £35.5 billion of various debts is owed to SMEs in the UK.
Dan Wagner, chairman and CEO of Powa Technologies, the company behind mPowa, said: “We created mPowa as a response to an age-old problem that needed a solution - a universal payment system that will enable anyone to accept money from customers without excessive costs or waiting times.”
Small and medium businesses were said to have waited an average of 29.6 days longer than agreed payment terms in the second half of last year.
Dan added: “This problem is crippling companies who are already struggling in this difficult economic climate and many are having to close their doors because of this.”
Individuals looking to benefit from this technology should search the market for credit cards that can offer rewarding rates.