The Rise of Mobile Wallets

The Rise of Mobile Wallets

Gone are the days when mobile phones were only used to make calls or play games. Nowadays phones have multifarious uses like watching movies, photography, tracking our health or switching on the lights or even as mobile wallets. Recent trends show that consumers worldwide are using mobile wallets to make payments or send money & the global mobile wallet market has risen in value at over US$3 billion.

Prime Web Design Company in Kochi, Cedar Software Technologies sheds some light on this topic.

What are Mobile Wallets?

A mobile wallet or a digital wallet, is nothing but a mobile app that allows you to store cash and make payments without credit cards or online banking. They are becoming increasingly popular as a means for people to pay for goods and services, both online and offline. At first users save their payment details with the digital wallet provider and then when they check-out from merchants that accept that particular wallet, their transaction goes through in a single click.

Apple Pay, Samsung Pay, and Android Pay are a few mobile wallets launched by operating systems which are already popular across the globe. Today brand-specific mobile wallets are on the rise, including Walmart Pay and the Starbucks wallet app etc. Apart from that, social media apps have begun adding peer-to-peer money transfer options, like Facebook Payments and WeChat Wallet. Friends can now transfer money to one another in a breeze!

Digital wallets have become a natural extension of the phone’s functionalities now and the speed and convenience of using digital wallets make them popular than any other payment method, be it a credit card, debit card or cash.

Are Mobile Wallets safe to use?

Yes, as all mobile wallets are under the protection of strong encryption algorithms and financial details of people are hidden from merchants and other third-parties. Digital wallets use multiple levels of encryption and tokenization to ensure your banking information stays secure. Advanced security measures like tokenisation reduces credit card fraud by replacing your bank card information with a randomly generated string of numbers (“token”) so that the true data remains hidden. Also, Mobile phones have their own security set-up which often requires a PIN code or biometric authentication before allowing access to the device.

Will Mobile Wallets replace Plastic debit/credit cards?

The digital wallet will most likely displace all other forms of payment, including cash in the future due to its ease and convenience. The bulky cash and plastic debit/credit cards will become obsolete over time. It is expected that Mobile payments can increase exponentially in the coming years as there is a steady increase of people owning and using their smartphones. With more companies now coming on board to develop brand-specific digital wallets for users & more services and conveniences being integrated into people’s lives, mobile wallets will definitely be on the rise.

We at Cedar, the best Digital Marketing Company in Kochi, hope this insight has been helpful to you. Contact us today to know more.

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