Mobile wallets are revolutionising the way we live our lives - allowing us to make purchases for goods and services without the need for debit or credit cards.
They software represents a new form of digital payment offering a multitude over traditional methods. Mobile wallets are convenient, easy-to use, and can be accessed from anywhere with an internet connection.
Let's explore some of the bigger advantages of mobile wallets in this article - and prepare say goodbye to plastic cards forever!
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 do they offer?
Advantages of Mobile Wallets
Easily Accessible
Mobile wallet technology is a game changer for consumers. Now, you can make purchases using your phone instead of juggling cards - eliminating unwanted time and stress.
The process couldn't be easier: simply fire up the app on your device (it takes a matter of seconds), tap when prompted on the POS device - then watch your money change hands in a flash. iOS, Android.. mobile wallets are compatible with all the major smartphone players of today.
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!
As well as being free to install, mobile wallets are a great way to save on high fees when withdrawing cash from a physical ATM. And if you ever find yourelf abroad, notice the sky-high fees some cash machines, and banks, charge just to get hold of your money to pay for your next restaurant bill or important or taxi fare. Yep - even taxis around the world are increasingly accepting mobile wallets as a form of payment in 2022!
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.
Are They Safe?
The mobile wallet is a safe and efficient way to pay for goods and services in 2022. It’s supported by additional technology like two-factor authentication, helping to safeguard against fraudulent activity for additional peace of mind.
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.