Mobile Wallets: What Are They? And Some Of Its Key Features

Traditionally, people used mobile phones to only call people. However, over time, they became internet access devices; we could use them to send and receive emails, click pictures, and calculate; we could use them as a compass, a flashlight, and now as wallets.

You can use a mobile wallet to store your credit, debit, gift cards, loyalty cards, etc., so you can carry out all your payments through your phone instead of using cash or a card. And there is no need for a separate payment app; you can do everything in one place.

At present, many are moving on to a virtual wallet instead of a physical one. Here are some of the key features that make us prefer using a mobile wallet over a virtual one:

1. It’s Convenient

There is no need to shuffle through plastic cards or cash during checkout since we always have our smartphones. All we need to do is scan and pay.

2. There’s Lesser Health Risk

Mobile wallet payments being contactless reduces the risk of contracting COVID-19 or other infectious diseases that may live on payment surfaces.

3. It Offers Better Security

Mobile Wallets offer better security than using a physical debit or credit card. However, while swiping your card, the magnetic stripe is easy to read by magnetic scanners, which could leave it vulnerable to anyone trying to steal the card’s information. Card swipes also transmit your essential information, which leaves it open for hackers attempting to seize that information.

With a Mobile wallet, every transaction is encrypted. Merchants never have access to your account number or card number. Instead, these wallets use a DAN (Device Account Number) instead of an actual account or card number. A hacker can only get access to your DAN through a wallet payment, which would be utterly useless to them.

Mobile wallets add an extra layer of protection: a personal identification format, such as a PIN, fingerprint or face recognition to access it.

4. It Saves Time

The payment between one wallet to another happens within seconds, instead of taking hours or business days. With this, you can make payments from anywhere and at any time. It offers customers a quicker way to complete purchases, thus reducing the lines and getting customers out of their frustrating wait. It also works as a rent payment app through which you can pay your rent quickly.

In today’s cashless society, these methods of payment are becoming inevitable.

5. Seamless to & fro Transfer Between Banks

A mobile wallet allows seamless transfer of money between accounts within the same bank and between two accounts from any different banks available out there. Users also have many other options in sending and receiving personal or business funds with just a few clicks. There is no need to have a different app like a credit card payment app. You can do all of this from the wallet.

6. Easy Bill Payments

Need to recharge your phone? Or pay electricity bill online? You can do it all in one place. One of the essential features of a mobile wallet is paying bills like utilities, mortgages, loans, rent, tuition, etc., online.

With the dawn of digital cash, mobile wallets are becoming a crucial part of our daily lives and provide us with an effortless bill payment experience.