Mobile Wallets: What Are They, And Why You Need One
The world of payments and finances is ever-changing, but one thing that hasn’t changed is consumer expectations; people want a fast, easy, and seamless payment/checkout experience, and they want these transactions to be safe. Enter the mobile wallet.
In a 2016 U.S. Consumer Payment Study, only 11 percent of respondents expressed a preference for paying with cash, with the vast majority preferring to pay with credit and debit cards. 44 percent of consumers reported loading card info onto a smartphone or digital wallet–in 2018, this number is even higher.
80 percent of merchants now see mobile payments as a fundamental part of their business strategy, with 92 percent expecting to maintain or increase investment over the next 12 to 18 months. 80 percent of respondents cited consumer demand as one of the main reasons for adopting mobile payments.
This demand is happening worldwide. 67% of Chinese nationals report that they use mobile payments when travelling abroad. In the UK, contactless spending has grown 34% since 2017. In the United States, mobile payments usage is even growing among baby boomers, with a survey showing that 49 percent of boomers who are not currently making person-to-person (P2P) payments using mobile technology offerings planned to do so before the end of 2017.
So what exactly is a mobile wallet, and why has it become so popular?
What Is A Mobile Wallet?
A mobile wallet is an app on your mobile device that stores your payment information. Just like with a regular wallet, a mobile wallet can store your credit, debit, prepaid, and loyalty cards, just in digital form.
How Do I Use A Mobile Wallet To Pay?
Mobile wallets use the same contactless tap technology as today’s debit or credit cards. Instead of having to use your physical plastic card to mark purchases, you open up your mobile wallet app and pay via smartphone, tablet, or smartwatch.
What Are The Benefits?
- You no longer have to carry around a physical wallet or keep multiple cards on your person–simply download a mobile wallet to your device and enter and save your card information
- In-store purchases made easy. Just select which form of payment you want to use and hold up your device to the POS machine to pay.
- Mobile wallets use a NearField Communication (NFC) chip, the same chip technology used in tap purchases on debit/credit cards
- No need to enter your card info with each purchase–it’s saved (and encrypted) in your mobile app
- Receive special offers, rewards, and discounts through your wallet.
Do People Enjoy Using Mobile Wallets?
Yes! 85% of smartphone users who use contactless payment technology have positive perceptions towards the payment method.
Are Mobile Wallets Secure?
Mobile wallets are more secure than carrying around cash or debit/credit cards. According to Consumer Reports, “That’s because information stored in mobile wallets is encrypted. When mobile wallets transmit data to make payments, they never transmit your actual account numbers. Instead, they use encrypted payment codes. And your phone can’t be opened without your fingerprint or a personal identification number, so getting to your data is much tougher than opening up your wallet or pocketbook.”
Mobile wallets also offer 24/7 fraud monitoring and zero liability protection, which means you will be reimbursed for any fraud, loss, or unauthorized card transactions. Additional features include activity alerts, push notifications, and the ability to view your transactions on the go, all of which can help you monitor your account activity.
Are Mobile Wallets The Future?
- It’s estimated that by 2020 almost 1 in every 2 dollars spent online will come from purchases made using mobile devices.
- According to Payments Canada and Leger Marketing, 66% of respondents are willing to let go of cheques and traditional payment methods and are looking at alternative payment options like mobile wallets.
- One in three Canadian smartphone owners has already paid for something with a smartphone.
- 53% of smartphone owners are interested in the ability to pay with their mobile devices so they no longer have to carry around credit cards or cash.
- 51% of consumers expect most people will pay with their smartphones in the next 12 months in order to avoid carrying cash or credit cards.
- 65% of smartphone regular purchasers (those who make a purchase on their smartphones at least once a week) plan to manage their personal accounts and payment information in a single mobile payment system (mobile wallet) in the future.
With the demand for one-click mobile wallet shopping also comes a desire for a top-of-the-line mobile wallet. According to industry executive Amir Wain, “In many ways, a prepaid card is to a mobile wallet what a debit card is to a checking account. Think about how much more accessible debit cards made our checking accounts. Prepaid cards do the same for mobile wallets today.”
The truTap 2.0 mobile app puts your TruCash account at your fingertips, allowing you to access your account on the go and manage your money and rewards. Check your available card balance quickly and easily from anywhere, in real-time. Earn points, send/transfer funds instantaneously, and view your transaction history in the palm of your hand. Manage your account on the go and protect your privacy/account details with the ability to instantly suspend/freeze your card if lost or stolen.
Have questions or want to learn more about mobile wallets? Feel free to contact us by visiting our contact page. DCR offers years of experience and expertise in prepaid and mobile payments—from the launching stage all the way through fulfillment and program management.