Mobile wallets are a relatively new payment option (compared to cash and checks) that can offer some serious benefits.
Mobile wallets – smartphone apps where you can store your debit and credit cards – are a convenient way to pay for transactions with a tap of your phone. Thanks to convenience, speed and added security, this mobile payment option continues to grow increasingly popular, with the market estimated to rise to $1.35 trillion in 2017.
If you haven’t jumped on the bandwagon yet, keep reading for five reasons mobile wallets are gaining popularity.
- They may help to reduce fraud. The data stored in mobile wallets is encrypted, meaning your actual card account numbers aren’t transmitted while making a payment. Mobile wallets use random payment codes that cannot be used again and often rely on certain security features, including biometrics, to authorize a payment. Furthermore, your full card account number isn’t displayed anywhere in a mobile wallet, meaning prying eyes won’t be able to capture your card number for future use. In addition, your transactions are covered by the same security and privacy protections as your physical cards.
- They can save you time. With a mobile wallet, you can pay quickly by holding your phone over the payment terminal and verifying the purchase. Most transactions can be completed in just a few seconds.
- You can trim your wallet contents. In addition to credit and debit cards, certain mobile wallets also can store loyalty cards and gift cards, allowing you to have them on hand at all times – without putting a bulge in your wallet.
- You can shop online on the go. Forget about typing in card numbers when shopping online from your phone – you can pay for some purchases with your mobile wallet. Using a mobile wallet instead of a card on file when you shop online means you can reduce the number of places where your card numbers are stored, without sacrificing a speedy checkout.
- You still receive rewards. If your card offers cash back or other rewards, you’ll still receive those when using that card in a mobile wallet. In fact, when you always have your virtual card on-hand, it may even be easier to rack up rewards.