Advancements in science and technology are continually changing the consumer-business relationship and rapidly making it digital. From e-commerce stores to online advisors, the invention of the internet, coupled with smartphones and tablets, is changing how businesses work and operate.
The world is moving toward a cashless system to meet consumers’ evolving needs and make businesses more efficient and convenient. The companies in the Fintech division are swiftly using innovative tools to digitalize the payment sector.
Companies worldwide use smartphones, laptops, tablets, and other smart devices to do online and offline transactions using tools such as Mobile Wallets.
What is a Mobile Wallet?
A Mobile Wallet is a virtual wallet that stores the information of all your debit and credit cards on a mobile device. One can use this wallet to pay online transactions and pay bills at markets and shops.
Moreover, the consumer can also use it to pay for buying things from online e-commerce stores. Thus, the Mobile Wallet is a convenient and efficient way of paying your bills and making other payments.
Some examples of Mobile Wallets are Apple Pay, Google Pay, Samsung Pay, and PayPal. This gives rise to another question: Are Mobile Wallets safe?
Are Mobile Wallets Safe?
The simple answer to this question is yes. Mobile Wallets are a simpler, safer, smarter, and more efficient way to manage your money. The credit card information stored in the mobile phone is secure since the data and information are stored in an encrypted form.
Even the company can’t read or see the credit or debit card details. When the user uploads information in the Mobile Wallet, it tokenizes the 16-digit card number into some randomly generated numbers, making it safer and more secure than traditional payment methods.
What are the Benefits of a Mobile Wallet?
There are several benefits of a Mobile Wallet. Some of its key benefits are that it is secure, accessible, convenient, and less costly.
Safe and Secure: Mobile Wallets are safer and more secure than traditional cards. For instance, if someone loses their traditional card, the person who finds it can tap it at any payment terminal and take the victim’s money; however, this is not the case with a Mobile Wallet. In the case of a Mobile Wallet, the user has to verify the transaction using fingerprints, face recognition, or a password, which makes it super safe.
Accessible and Convenient: Mobile Wallets are more accessible and convenient than traditional payment methods. In the conventional card method, one has to carry physical cards or cash to make payments.
For Mobile Wallets, this is not true. Once the credit data is loaded on the phone, one does not need to carry any physical cards or cash around to pay in-store bills but can make purchases and pay bills with a click of a button from anywhere at any time.
Use a Card of Your Choice: A Mobile Wallet gives you the liberty to choose whatever card you want to complete a transaction seamlessly. For instance, you might want to pay an in-store bill using your debit card to get some cash back, but you also might want to use your credit card to earn a few points. In this context, a Mobile Wallet allows you to choose a card effortlessly and conveniently for any situation.
What are the drawbacks of a Mobile Wallet?
Like every other technology, a Mobile Wallet is like a double-edged sword with advantages and disadvantages. However, the benefits of a Mobile Wallet outweigh its drawbacks. Some of the potential drawbacks of using a Mobile Wallet are discussed below.
May not be accepted everywhere: The biggest drawback of a Mobile Wallet is that it is an emerging payment system, and not every store or merchant uses it. In addition, it may not be compatible with payment-receiving devices everywhere.
Security concern: Although a Mobile Wallet is safe and secure, people are still worried about its security and are resistant to adopting this innovative technology. In addition, the growing number of cyber attacks and hacking has made people more skeptical about using a Mobile Wallet.
To summarize, a Mobile Wallet is a virtual wallet that stores debit and credit card information and can be used to pay bills and make transactions in one go. This process is an easy, secure, and smarter way to manage money and make transactions.
Moreover, it is more accessible, convenient, and safer than traditional payment methods. However, all merchants or stores may not accept it, and some people resist adopting it due to security concerns.
Overall, a Mobile Wallet might be the right choice for you if you want a specific system to manage money and streamline the purchasing process from your mobile device.