When you want to make a purchase, chances are you reach for your wallet. For hundreds of years, consumers have used wallets to store their money. And since 1950, they’ve used them to house their credit cards as well. Chances are that a decade ago, you wouldn’t even think about entering a store without your wallet.
But that may be changing. Just like the landline telephone before it, the wallet may be on its way out the door, with mobile technology replacing it.
But how could a mobile device replace a wallet? With mobile wallet technology! A mobile wallet is a virtual wallet that lives on your mobile device, and stores your credit or debit card information. Instead of using your physical plastic card at a store, you can just pull out your smartphone or smartwatch to make a payment. Mobile wallets are gaining in popularity among retailers. Millions of businesses are now accepting them for payments.
One of the major benefits of using a mobile wallet to store your payment information is that it’s encrypted before it’s stored. That means if your mobile device ever falls into the wrong hands, your information won’t be easily stolen. But even though mobile wallet technology offers greater security than a conventional wallet, you should still always keep your mobile device locked for added protection.
Some of the most popular mobile wallets include Apple Pay, Samsung Pay, and Google Pay (previously Android Pay). Before you set up your mobile wallet, you’ll want to check to see if the financial institution that issues your credit or debit card participates with the mobile wallet provider. BankFive debit cards are compatible with Apple Pay. A full list of banks that support Apple Pay can be found at https://support.apple.com/en-us/HT204916. Likewise, a list of Samsung Pay supported financial institutions can be found at https://www.samsung.com/us/samsung-pay, and a list of Google Pay participating banks can be found at https://pay.google.com/about/banks/.
And although the terms “mobile” and “digital” are often used interchangeably, it’s worth noting that mobile wallets are slightly different than digital wallets. While a mobile wallet is in essence a payment application that is housed on your mobile device and is commonly used for in-person transactions at a store (however, in some cases they can be used for online purchases as well), a digital wallet is typically used for online shopping, and doesn’t require a mobile device. Visa Checkout and PayPal are examples of digital wallets. Like a mobile wallet, a digital wallet securely stores your payment information, and it can store your shipping information as well, making the online checkout process faster and easier.
With the added convenience that comes with a mobile wallet, it’s no wonder that many consumers are using them. In fact, mobile wallet technology could become even more convenient in the near future. According to a recent article by Shopify, Bluetooth technology could become more widely used for mobile wallet transactions. The benefit of this, is that Bluetooth technology has a much wider range than “near-field communication”, which is the most common way stores are currently taking mobile payments. The longer range provided by Bluetooth technology could allow consumers to make mobile payments without even taking out their phones.
If you’re thinking about putting your leather wallet in the storage bin, and trying out a mobile wallet instead, just be sure your smartphone or smartwatch is fully charged before you head out shopping. Pulling out a dead mobile device at the checkout counter is just as embarrassing as grabbing for a conventional wallet with no cash in it!