The value of transactions made using mobile wallets is set to surpass $3.5 trillion globally by 2024, up from $1.8 trillion in 2019. It's official - mobile wallets have revolutionised the way consumers make purchases.
Whether we're talking about big-name apps like PayPal or Alipay, or more niche products like Apple Pay and Samsung Pay, mobile wallets are now an integral part of modern life. One of the key reasons behind mobile wallet adoption is the growing trend of consumers using their smartphones as their primary device for all kinds of activities, including making payments.
What is a Mobile Wallet?
Simply put, a mobile wallet is an electronic purse that stores information on all your different payment cards in one place: your mobile device.
These wallets represent a quick and easy way to make POS (point-of-sale) payments in-store and also online at a verified merchant. Above all, mobile wallets eliminate the need to carry cash or physical cards - a boon for users with a tendency to lose things!
What other benefits they do provide users?
Advantages of Mobile Wallets
Easily Accessible
Accessibility is one of the main benefits to mobile wallet usage. No longer do you need to whip out a specific card for a specific payment. Simply load up the relevant app on your phone (which takes no more than a few seconds), tap, and watch your payment go through near-instantly. In the case of online payments, the process is equally as seamless.
Convenient
The convenience factor is another major upside. Gone are the days of figuring out precisely how much cash you need for the day - or scoping out a working ATM, for that matter. Keeping all your card information in one central location means you seldom need to worry about problems associated with cashflow, or wallets stuffed with banknotes and debit/credit cards.
Safe and Secure
Mobile wallets also mitigate the risks associated with fraudulent card payments for various reasons. To illustrate, data uploaded to your virtual wallet undergoes encryption to ensure its security - making it that much harder for wannabe fraudsters and thieves to assume your identity or attempt fraudulent payments.
What's more, most newer portable devices come password or biometric-protected, deterring any potential thief while making it almost impossible for them to gain access to your mobile wallet. Two-factor authentication supports the utility of mobile wallets further. This technology is purposefully designed to add an extra layer of security for total piece of mind should your phone go out of sight.
You can pretty confidently kiss goodbye to any physical cash that leaves your possession. Lose a mobile phone, however, and your finances should remain unharmed provided you take the necessary safeguards.
They're Free!
With a digital wallet, you can say goodbye to those pesky fees and manage your money the way you want to. Contrast this with some ATMs, which still demand a withdrawal fee. Additionally, online wallets make it easy to keep track of your spending and budgeting - two essential keys to financial success. So why not ditch the old-fashioned methods and switch to a digital wallet today? Your bank account will thank you for it!
Widespread Adoption
In the early days of mobile wallets, take-up by retailers was threadbare. Fast-forward to the present day, and adoption of the technology has exploded right across the globe. Like everything else in business, those enterprises that fail to adapt risk getting left behind and losing custom to a competing business rival.
Quick Payments
Either online or in-store, payments made via mobile wallets are typically processed at lightning speed - taking a weight off your shoulders while freeing up valuable leisure time. Your balance gets updated in real-time, too, unlike some transactions that can take an age to show in your account and leave you guessing.
How to Pay with a Mobile Wallet
Mobile wallets leverage technology labelled NFC (Near-field Communication). The chances are most of you have made payments in this way without even realising it. It's the exact same technology used by contactless payments, which rely on radio frequencies to facilitate information exchange between mobile devices and POS terminals.
Before a payment can be made by NFC, all your debit/credit card information must belong to a digital account linked directly to your mobile device - normally accomplished by installing the respective provider's mobile wallet app onto your phone.
Then simply hover/tap your phone over the receiving NFC reader to make the payment like you would via contactless. If you're shopping online, simply enter the credit/debit card credentials stored in your mobile wallet to the merchant's website.
Though many new mobile phones come with mobile wallets pre-installed, the world's eminent technological firms boast their own versions. The more familiar products include the likes of Google Pay, Apple Pay, Samsung and PayPal, each built around the varying needs of their consumers.
How Safe are Mobile Wallets?
Mobile wallets are one of the safest modes of payments available today. Supported by additional technology like two-factor authentication, they let you pay for goods and services swiftly in complete confidence.
If you forget to protect your mobile device through the use of passwords or any other measure, though, you risk compromising your safety. Ensure you keep up-to-date with the latest security features of your own device, as well as your mobile wallet/s. Keeping your phone safe and protected is key to ensuring mobile wallet security.
In Conclusion
Mobile wallets are leading the charge for a cashless society. Built on state-of-the-art technology, the payment options present a multitude of benefits for consumer and businesses alike, principally speed, safety, security and convenience.