Do you remember when we only used phones to call people? You also needed a computer, camera, calculator, flashlight, compass, and calendar for everyday activities. Now, our mobile devices can do it all, even be a virtual wallet. A mobile wallet is an app that keeps payment card information on a mobile device for purchases instead of using more traditional methods like a physical card, checks, or cash. Mobile wallet use has grown in popularity in recent years for its benefits.

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How Do Mobile Wallets Work?

Using a mobile wallet is as simple as a few taps. When you spot the contactless symbol on a vendor’s payment reader, just open your mobile wallet app, choose a card, and hover your device a few inches above the reader. It's that easy! The contactless symbol, resembling the wi-fi symbol turned on its side, is your cue to a seamless transaction.

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Pros For Using a Mobile Wallet

• Convenient—No more shuffling through a deck of plastic cards, lugging around a bulky wallet, or having loose coins in your pocket. A mobile wallet stores information for your credit and debit cards and coupons, loyalty cards, boarding passes, concert tickets, gift cards, ID cards, healthcare cards, and more. Everything is all in one place.
• Secure—Mobile wallets use encryption, meaning the card number and information are never shared with the merchant. Mobile wallets use a Device Account Number (DAN) instead of actual account or card numbers. If a thief accesses the DAN, it would be useless to them and leave your accounts untouched. Mobile wallets also provide an extra layer of protection that allows access to a personal identification format, such as a PIN, fingerprint, or face recognition.
• Contactless—With illnesses circulating, the health risk of using your device to make payments is reduced.  Mobile Wallets use Near Field Communication (NFC) technology, which is contactless communication between two devices placed within 4 inches of each other. You don’t need to touch anything except your mobile device.

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Cons For Using a Mobile Wallet

Although there can be limitations to using mobile wallets, they are few and far between.  A mobile wallet could have limits on where you can use it, as only some retailers can accept them. Also, you must know how to set up and use your wallet. Since mobile wallets depend on mobile devices, risks and inconveniences could be associated with a lost, stolen, or broken phone or device.

Are you interested in learning about mobile wallets and how they can elevate your business? Contact us today to explore this innovative transaction method!