The Future Of Mobile Wallets
Mobile wallets are not a new concept as they have been around since the 1960s! And yes- despite their age, they are still one of the most popular payment methods. They stand to benefit from innovations like biometrics and Bluetooth smart technology. Let’s learn more about its history and how new developments will shape the future of mobile wallets!
The History Of Mobile Wallets
Mobile payment systems have existed in one form or another since the 1960s. Even before payments became easier through smartphones, alternative methods were widely used by consumers. The earliest examples of a mobile wallet date back to 1966, when Coca-Cola introduced its RFID-enabled cards that could be used to purchase sodas from vending machines. The idea was successfully implemented in the Netherlands, but it never took off in other regions.
In 1982, Japan’s NTT Docomo introduced the Monaco, which was a mobile phone that could be used to make payments for train tickets and taxis. In 1994, Japan’s Docomo came up with an idea to integrate mobile payment services into its digital wallets, offering the world’s first mobile commerce platform.
Yet, it was not until the early 2000s that mobile payments became a reality in Western markets when companies like PayPal and Google began to roll out their own systems. While these were initially used as digital wallets, it was not until 2007 that the term “mobile wallet” became widely used in the United States.
Google started to roll out mobile payments for Android users in 2010, enabling customers to store credit cards and other information on their phones. PayPal also introduced an app that allowed users to store their details on their phones. This was the moment when mobile wallets really hit the mainstream, with many consumers choosing to opt for this new method of payment. By 2017, there were over 12 million PayPal customers using this system in the U.S alone.
The Future Of Mobile Wallets
It wasn’t until the late 2000s that mobile phones started to become widely used worldwide. In 2007, there were only about 1 billion smartphones in use around the world; by the end of 2016, this number had jumped up to over 2.8 billion, a rise of almost 200%. With more people using their devices to pay for things, mobile wallets are one of the most important aspects of payment technology today.
The future is even more exciting: according to Business Insider— by 2020, there will be over 3 billion smartphones on the planet. This means that a whole lot more customers than ever will have access to payment features through their smartphones. It also means that businesses and financial institutions will have a whole lot more opportunities to provide payment solutions using mobile wallets.
Innovations like Bluetooth connectivity, biometrics, and Near-Field Communication ( NFC ) have made it easier than ever for customers to use their phones as wallets. The future of mobile wallets looks bright as these technologies continue to develop further!
Characteristics Of A Mobile Wallet
A true mobile wallet can be recognized by the following characteristics: it is a physical or digital storage space where consumers can store their payment information, loyalty cards, and other details. A mobile wallet can be used to make payments at retail settings and online stores. It is usually protected by a password, pin, or identification number. A mobile wallet can also store coupons, gift cards, and other special offers from participating retailers.
A whopping 91% of customers claim to be loyal to the brands that offer mobile wallets. As payment methods like mobile wallets and contactless payments become more popular, cash may soon cease to exist or be as mainstream. Research conducted by Juniper Research predicts that by 2027, 75% of retail transactions will be made using either a debit card or a mobile wallet.
It’s not just consumers who are taking advantage of the benefits of mobile payment– businesses are, too! Using innovative new methods like contactless payments and NFC technology allows retailers to increase their sales by offering customers more convenient ways to pay.
Mobile wallets have also been shown to help people save money. This is because people who pay with their mobile wallets tend to spend less on impulse buys because they are able to make more detailed comparisons between the prices of different items online.
A study by the Mobile Marketing Association found that 32% of people use their phones to help them save money. In addition, 60% reported that using mobile banking apps and services helped them get their finances under control.
There’s no need to worry about whether or not you have the right change or cash on hand, because payments can be made immediately and securely with a mobile wallet.
Mobile Wallet Security Issues
Security is always a big issue when it comes to payments, especially mobile payments, and this is why many companies and governments are working on ways to keep people’s information safe. You can also expect them to come out with new strategies for storing data so that people will be encouraged to start using these services. This is especially true for younger people who have the tendency to forget about their passwords and sometimes lose or break their devices.
Mobile Payments Will Continue To Grow
As mobile payments continue to grow there will be new companies that want to join the trend which means even more competition to reach potential customers. This is why you should buy a good wallet right away so that you can benefit from it as soon as possible. You may also want to consider investing in other products that can protect your data or help you keep your information safe in case something happens to your device.
In conclusion, mobile wallets are widely popular around the world, and they stand to benefit from future innovations as well. This is why an increasing number of people are using them each day. In fact, you can use your phone to get cash from an ATM machine or pay for just about anything else you may need.
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