What is a mobile wallet

An Introduction to Mobile Wallets: What they are and How to use Them?

There was a time when the only utility of the phone was to call people. With the advancements in tech and access to the internet, they slowly evolved into fascinating devices. With the addition of so many amazing tools and applications, they have become the ultimate tech tools of the modern world.

Along with the digital revolution that we are already a part of, mobile wallets have also become a revolutionary tool when it comes to financial transactions. We are in the age where smartphones can do much more than just a physical card.

What is a Mobile Wallet?

Compactly put, mobile wallets are a digital way of storing info on credit, debit and gift cards, and making purchases from them. They are a convenient way of storing essential information and making quick financial transactions. 

What Makes a Mobile Wallet Useful?

Easy and Convenient

This can be easily picked as a number-one benefit. Smartphones are with us most of the time. When you can easily make a payment with a few clicks, why would you try shuffling through a full deck of cards? It is an inconvenient hassle. We now live in a time where you can even store a mobile wallet in a smartwatch.

Along with credit, debit and other cards, you can also store tickets, boarding passes and key cards in your mobile wallet. You can easily use it for your online and offline purchases.

Reduction in Health Risk

The covid-19 pandemic may have been itching to its end, but the concerns regarding safety and hygiene are still prominent in the minds of people. Mobile wallets are a contactless technology. 

They significantly reduce the risk of contracting diseases and spreading germs. When you use mobile wallets, you prevent contact and contamination.

Safe Shopping

Mobile wallets allow you to make safe and secure transactions. Swiping the physical cards has its risks. The magnetic strip is easy to read, it can be done by any magnetic scanner. 

Therefore the thieves can steal the card’s information. When you swipe a card, the card’s actual information is transmitted. It can be grabbed by any hacker who’s intercepting that info.

With transactions on a mobile wallet, every single transaction is encrypted. Your card or account information is never shared with the merchant. 

Mobile wallets smartly use Device Account Number (DAN), instead of a card or account number. Even if a thief gets his hand on DAN, it would be useless to him. Your accounts are left untouched.

Time-saving

You can quickly make your purchases with mobile wallets. It provides a hassle-free and seamless shopping experience. When many people start adapting to this, it’ll help in reducing lines at the billing counter, without leaving the customers frustrated.

How to Use Mobile Wallets

First, you have to identify and choose your preferred mobile wallet. It is extremely easy to set it up to start making payments. You can start by downloading the mobile app from the app store. 

You can do it on your phone, tablet or any other compatible device. When the app is launched, you need to carefully add the information to your wallet. That may include info on credit cards, debit cards, coupons, rewards cards or others.

It is possible to store the information of multiple cards in a single app, but you can select one card as the default for making the payments. If you want to make use of a different card, you just need to change the default card.

When you’re purchasing at a retail store, you need to find merchants that accept your preferred payment gateway. Many merchants now accept mobile wallet payments, it can be easily identified through a contactless payment indicator. 

How the Mobile Wallet Works

The mobile wallet makes use of Near-field Communication (NFC) enabled technology. Many have also adopted QR code technology. Latter is more visible and widely used. 

The digitized valuables are securely stored in the wallet. They are represented in many different forms. These representations are linked to the user’s personal information. All the information stored is strongly encrypted and encoded.

A customer can use his smartphone to access the information, by entering the set PIN or passcode. The app makes use of information transformation technology like NFC, to activate the mobile payment terminals.

 Mobile wallets are now widely used. The freedom and flexibility they provide have appealed to many. You can use them not only to pay the bills but also to shop and to make fund transfers to others. 

You can simplify your financial management and make quick transactions whenever you want using mobile wallets.

Read: BNPL v/s Credit Card

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