By Ritesh(R) Chugh and Ripan(R) Sethi
RR may be late adopters of mobile wallets but since joining this bandwagon it has changed the way they transact and make payments. And obviously without the need to lug their traditional bulky wallet! In the past, we all had no choice than to carry cash and loads of plastic cards (credit card, debit card, loyalty card, gift card) in our pocket when we were going out. In fact, if you count the cards in your wallet, there will be around 7-11 (pun intended). However, advancement in technology now means we can store details of all our cards in a mobile wallet and also pay using payment mechanisms linked to the mobile wallet.
So, are you tired of carrying that bulky wallet in your purse or pocket? Well, time to consider installing a mobile wallet on your mobile device (smartphone or smartwatch) then. A mobile wallet is an app that allows you to make payments with your mobile device at the point-of-sale, simply by tapping your mobile device. Mobile payment start-ups and larger technology companies are developing mobile wallet platforms, adding features that manage your credit and debit card payment transactions and track customer loyalty programs to replace those plastic cards you carry completely. Although people often use the terms ‘mobile wallet’ and ‘digital wallet’ interchangeably, there is a big difference between the two. Digital wallets are usually accessed via a website, while mobile wallets are accessed via an app on your mobile device.
There is an apparent notion that mobile payments are not secure. However, research indicates that transactions made using mobile wallets are more secure than plastic cards and cash. Apps use tokenisation and encryption technology to make them secure. Nevertheless, no payment mechanism is 100% safe and caution should always be exercised.There are several mobile wallets in the market but some of the most trusted ones for making payments areApple Pay, Google Pay and Samsung Pay. If you are after a mobile wallet that just stores details of your loyalty cards then consider Stocard and Key Ring.
Of course, mobile wallets have their inherent advantages and disadvantages. Some of the pros and cons are outlined in the table.
| Pros | Cons |
| · Safer than using your plastic card | · Not accepted everywhere yet
|
| · Make instant payments without having to look for change
|
· Payment transactions cannot be completed without Internet connectivity
|
| · No need to carry those cards along whenever you are going out to shop.
|
· Dependence on mobile devices |
| · Easy to access and saves you time too
|
· Prone to security vulnerabilities |
As with any industry, we will continue to see the rise of new mobile wallets and the collapse of some. Only the strong ones will remain. Although mobile wallets will dominate the future of mobile payments, there is still much development to be done especially in getting users to embrace it and making the payment process more intuitive. Ultimately, mobile wallets represent the future of payments and payment processing. But users need to recognise the benefits of using mobile wallets and leverage on it. Time to tap!
RR Corner: from sombre to humour!: Mobile Wallets: Pay with your Smartphone added by Indian newspaper Sydney on
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