Mobile wallets are actually more straightforward than you probably suspect. Basically, mobile wallet software transforms a user’s smartphone or compatible mobile device into a digital wallet than can take the place of a physical credit card or debit card.
Mobile wallets are designed to be a convenient and safe way to store and manage all of your banking, loyalty, and rewards cards. Physical cards and traditional wallets are susceptible to loss and theft, while mobile payment can be protected with passwords and encryption software.
Using a mobile wallet, rather than carrying a clunky, traditional wallet, reduces the amount of physical stuff a person needs to carry with them. Not only are mobile wallets convenient, they can also help reduce fraud activity. This is because mobile wallets have built-in fraud protection and encryption software. Not only that, the digital payment information is generally more difficult to steal and copy than a physical plastic card or cash.
While all of this probably sounds great, you most likely still have some questions about what mobile wallets are and how they work. This is why we have provided this handy guide, which will tell you everything you need to know about mobile wallets! We will explain why they are gaining popularity, how they work, and how you can get a mobile wallet for yourself. We will even explain how you can get into the mobile wallet marketing business for yourself!
Why Should People Switch to a Mobile Wallet?
Unsurprisingly, one of the main reasons why so many people are switching to mobile wallets is for convenience purposes. A mobile wallet can be linked to your smartphone, which means you would already be leaving the house with the device anyways.
Not needing to carry around a clunky wallet that is stuffed with a variety of cards you rarely use is a huge advantage, especially for those that like to travel lightly. Many people like the quick accessibility and simplicity of contactless payment for purchases with their smartphone. A mobile wallet is available for Android and iPhone devices, so it’s totally accessible for anyone with a smartphone.
Using mobile wallet payment methods, you would no longer need to worry about losing or misplacing cards. Then, of course, there are the timesaving benefits. Payment transactions take place almost instantaneously. Where credit cards usually have to be inserted into payment machines and passcodes entered manually, mobile wallet transactions take place wirelessly and instantly.
As mentioned above, there is also the security factor. Mobile wallets use encryption software and anti-fraud protections to make sure that the user’s identity, banking information, and money are protected.
So, How Do Mobile Wallets Work?
While the concept of a mobile wallet sounds a little high-tech, they actually operate in a fairly straightforward way.
Essentially, the user downloads a mobile wallet app of their choice onto a compatible and practical device – usually a smartphone, tablet, or smartwatch. From there, the user would upload the relevant card information, which usually includes their debit, credit, and loyalty cards.
Once the mobile wallet app has been installed and the relevant card information has been uploaded, the user can then use their mobile device to make in-store and online purchases.
The purchasing process with a mobile wallet depends on whether the purchase is online or in-store:
Online Purchases Using a Mobile Wallet –Once the user is at the checkout screen,they simply access the mobile wallet app and select the card they would like to pay with. This is all they would need to do to make a purchase on with their smartphone.
In-Store Purchases With a Mobile Wallet –To make an in-person purchase with a mobile wallet, the user simply taps the mobile device containing the wallet to a digital payment enabled terminal. Mobile wallets use what is called a near-field communication (NFC) chip. It is the exact same technology that allows you to do contactless ‘tap’ payments with physical cards.
Where Can You Use a Mobile Wallet?
Retailers everywhere are beginning to adapt to new payment technologies. You will normally see the logos for various mobile wallet apps in the windows of retailers that accept digital payments. In the same way you would see a Visa and MasterCard sticker in most store windows, you will now notice logos like Apple Pay and Samsung Pay.
In the United States alone, over 10 million stores now accept Samsung Pay and roughly the same can take Apple Pay and Google Pay payments. These numbers will continue to grow as retailers realize how many consumers prefer to pay for goods using mobile wallets.
You can almost always pay for goods and services online using a mobile wallet.
What Makes Mobile Wallets Secure?
Any information users upload to their mobile wallet will be encrypted. Given the fact that many smartphones are protected with passwords, face recognition software, and fingerprint detectors, you could argue that accessing a mobile wallet is much more difficult than opening a physical wallet.
The mobile wallet itself will also often use two-step authentication. Between the mobile wallet’s internal security measures and the authentication process required to access most smartphones, mobile wallets are actually difficult for non-authorized users to gain access to.
If a person were to lose their smartphone, it would still be difficult for others to access their mobile wallet. Most mobile wallet users install location-tracking software on their smartphone so they can quickly locate a lost or stolen device. You can also wipe data remotely to prevent thieves from accessing sensitive information stored within your mobile wallet.
If you lose your mobile device or suspect it has been stolen, you can also quickly change your passwords and make your mobile wallet inaccessible. Then you simply transfer your mobile wallet to a new device and you have your wallet back.
How Do You Get Into the Mobile Wallet Business?
Mobile wallets are an emerging technology that is increasing in popularity every day. Not only are mobile wallets a convenient way for consumers to pay, they offer businesses plenty of opportunities to deliver digital marketing material directly to mobile wallet carriers.
Businesses can really benefit from being able to deliver their customers offers, coupons, and more directly to their mobile devices. This is where you can step in.
DealDrip is a turn-key business solution that gives you everything you need to set businesses up with the ability to deliver special offers, deals, coupons, and much more to consumers that use mobile wallets.
You will be able to offer businesses the ability to send push notifications directly to mobile wallet carriers that walk past their business. Businesses could then deliver deals and coupons to consumers, which would increase their conversion rates and help attract new customers.
You get everything you need to start selling mobile wallet marketing to businesses that could greatly benefit from modernized marketing techniques. Best of all, your business will always remain 100% yours!