10 Benefits of Using a Mobile Wallet
People have been embracing smartphone technology with open arms. Today, they use phones for everything, from shopping, looking for a new place to dine out, paying for movie tickets, and their online purchase with their digital wallets; phones are being used for everything.
With the new normal, emphasis has been put on contactless payment. Many traditional retailers who were hesitant to turn to online payments have also upgraded their payment systems to make it even more convenient for people to make payments using mobile wallets. If you haven’t started using a mobile wallet, we give you ten benefits of using mobile wallets.
But first, let’s talk about mobile wallets in brief.
What are Mobile Wallets?
Mobile wallets are apps that one has to download on smartphones. These wallets store your debit and credit cards so you can make payments easily. They are a convenient way to pay for transactions with a tap of your phone.
According to the Global Payments Report 2021, in 2020, 25.7% of all POS payments were made using mobile wallets. In three years, this figure is expected to jump to 33.4%.
Now, let’s talk about the benefits of mobile wallets.
1. Cut the Clutter
Mobile wallets are a great option for anyone looking to cut down on the clutter because they allow you to go anywhere without carrying your credit or debit cards. With your mobile wallet, you can leave your cards at home and not only slim down your wallet but also lower the risk of your card being stolen.
2. Make Payments Quickly, Saving Time
Mobile payments are super-fast. With a mobile wallet, you can pay quickly by holding your phone over the payment terminal and verifying the purchase. Most transactions can be completed in just a few seconds. Whether it is paying quickly for fast-filling movie tickets before anyone else or just wanting to pay for your purchase in a hurry without fumbling with your wallet or purse, a mobile wallet has got you covered. With the right digital wallet, you can always be ready to step up and check out.
Such mobile apps allow the queues in the stores to move faster since the payment is made in less than a minute. In the case of online shopping, the digital wallet saves a lot of time on entering the credit card details and identification because everything is already stored within the app.
3. Get Discounts, Special Offers and Rewards
Some mobile wallet platforms offer discounts, rewards, special offers, and even cashback to attract new users and promote their apps. It means that with a mobile wallet, you get a chance to pay for your purchases quickly and get exciting perks. If your card offers cashback or other rewards, you’ll still receive those when using that card in a mobile wallet.
4. Makes Paying Back Money Easier
If you’ve ever split the check at dinner, at the grocery store, or even borrowed a few bucks for parking, you know just how frustrating it can be to pay back your friends, especially if you don’t normally carry cash. Many mobile wallets allow people to easily send money to friends and family quickly without any additional fees.
5. Safe and Secure Mode of Payment
Mobile-payments using mobile wallets are extra secure as it encrypts transaction data and utilizes biometric authentication features like fingerprint scans and facial recognition. Also, each transaction on a mobile payment app is tokenized. This involves generating a One-Time Password or OTP by the payment terminal.
The OTP is used to complete the transaction in place of the buyer’s actual payment information. The password cannot be used for any other transaction and is effectively useless if hacked. It means that OTP replaces sensitive account holder information that fraudsters cannot use if intercepted during payment sessions, increasing security for both businesses and consumers. The buyer is thus protected from fraud.
Additionally, all the data you have in your mobile wallet is encrypted and never sent to third-party organizations. So, the online market you shop at will never know the details of your payment. Moreover, the transactions have to be confirmed by you through your fingerprint or by a password. The digital card wallet is also protected by your device’s security system like a Face ID, fingerprints, or passwords. It means that if someone steals or finds your smartphone, it would be hard to get access to your money.
6. Manage Multiple Cards
Most mobile wallets enable you to set up multiple payment options, including both debit and credit cards. If you have multiple accounts and have difficulty managing them, a mobile wallet is convenient to manage your multiple cards.
7. Easily Track Your Monthly Spending
With a mobile wallet, you can say goodbye to a mound of old receipts. Most wallets keep a record of all the transactions that help people keep track of what they’re spending, where, and how often. You can analyze your transactions after each week or month to control the expenses better.
8. Simple to Use
Most wallets for your smartphone are designed with user experience at the top of mind. It means most apps will be intuitive and simple to use. Unlike card payments, where one has to put in card details while using a mobile wallet to make purchases, a user has to do no such thing. Everything you need to make a payment is close at hand, easily managed, and easy to use.
9. Shop Online on the Go
Forget about typing in card numbers when shopping online from your phone. You can pay for some purchases with your mobile wallet by tapping a few times. Using a mobile wallet instead of a card when you shop online means you can reduce the number of places where your card numbers are stored, and that too without sacrificing a speedy checkout.
10. Convenient
One of the biggest and most obvious advantages of mobile wallet is its convenience. Mobile payments seem to be a natural extension of all the daily tasks that users demand of their smartphones. Adding payments to a device already consistently used makes the process easier and more convenient than ever before.
Your Turn to Get Started
You could be just seconds away from being set up for safe, convenient purchases with your phone. What are you waiting for? Get started today!!
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