Recently mobile phones have been used to pay for goods in stores and supermarkets. One methodof payment involves holding the phone close to a reader in the store. Discuss the advantages and disadvantages of this method of payment compared with other methods of credit/debit card transactions.

The advantages of using mobile phones to pay for goods in stores are;

1) The ability to pay for goods and/or services without having to carry a physical wallet, thereby making payments faster, more convenient, and safer as the contents of a money wallet or purse cannot be seen

2) The generation of security codes for each transactions, the use of PIN input and finger sprint scanning for payment, ensures access to payment authorization is limited and requires definitive authentication and that payment transactions will not need to be scrutinized by merchants to detect fraudulent transactions

3) Paying with the mobile phone increases privacy as the card used for payment will be known only to the person doing the payment, thereby a person can use a credit card with low limit without displaying them

The disadvantages of using mobile phones to pay for goods in stores includes;

1) The possibility of breach in security of the mobile phone during payment. Sensitive information of the mobile phone can be collected during payment and then used in other places without the permission of the owner of the phone

2) Mobile phone payment may not be suitable to people who prefer card or cash payment

3) The different mobile phone payment applications and platforms are not entirely compatible and can lead to payment challenges

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