What is mobile wallet? You don’t have information about it yet, basically because it is quiet new concept for you. In this article, we will explain about from the concept to how it works, and some famous mobile wallets for you.
1. What is mobile wallet?
Mobile wallet is a virtual wallet that store all information about the payment cards like Debit card, credit card on the phone. So users just take their phone to buy anything in the store or to trade with the accepted locations that accept mobile wallet services.
2. Mobile wallet mechanism
The rapid development of technology increasingly makes transactions between buyers and sellers that become increasingly digital. From the rise of e-commerce platforms to Robo advisor, and smartphones, businesses always have to change the way that they operate to meet their needs.
The development of technology in the financial sector also plays a big part in the spectacular development of the technology field in general with so-called fintech companies.
These companies have been devissing thousands of services and tools that are useful, inexpensive and easy to use for customers. One area in finance that is seeing a lot of changes is the payments segment.
By using mobile technology such as smartphones, tablets, or smart watches, the company and users are adapting to online and offline transactions using devices like mobile wallets.
Mobile wallets are able to be installed on the smartphones or as an available feature on a smartphone. Which means that mobile wallets store credit, debit, coupon, or bonus card information.
Once the app is installed and the users enter payment information, the wallet saves that by associating a personal identifier including a code or key, QR code, or even an owner’s image with each stored card.
When a user makes a payment, the mobile application uses a technology called NFC (Near Field Communication) – is a near field communication technology that uses magnetic induction to make connections between devices when having direct contact or putting close together.
NFC uses a personal identifier created for users to transmit payment information to the merchant’s POS device. Information transmission is usually activated when users swipe the card or use an NFC-enabled mobile device to connect to the NFC reader.
Furthermore, not all smartphones or mobile devices are equipped with NFC technology, including Iphone. For iphone users, there are other ways to use their mobile wallets for in-store payments.
For example, PayPal allows users to make payments using their mobile phone number at checkout. The phone number must be associated with users’ PayPal account for the approved transaction.
While PayPal uses the phone number for payment, other mobile wallets apply different personal features that are able to identify users as LevelUP which uses the QR code that can scan to pay.
Moreover, fraudulent activities are hard to happen with mobile wallets such as identity theft. While a user’s credit card can be easily stolen or copied, smartphones are not easy like that, because it has access to a password or fingerprint check. And mobile wallets on smartphones may also have encryption keys.
Besides, mobile wallets are also useful for retailers doing high volumes of transactions each day as it helps to reduce the waiting time and payments. This is a boon for both customers and businesses.
3. Mobile wallet comparison between digital wallets and mobile wallets
Although digital wallets and mobile wallets can exchange with each other, they have different methods of payment.
Mobile wallets are mainly used for online payment and may unnecessarily be used on mobile wallets. And mobile wallets are used by people who don’t want to take their real wallets, so they need to have a phone for payments.
Taking PayPal as an example, PayPal account is normally a form of e-wallet, but when it is used with a payment service with a phone or a mobile device, its function is a mobile wallet. So now you can understand the boundary between Mobile wallets and digital wallets, it has a little difference when using.
4. Mobile wallet recommendation.
4.1. Apple Pay
This is an NFC-based mobile payment function released by Apple. The payment service can be made at payment machines at stores via NFC. Also, users take the iPhone through NFC and then use Touch ID or Face ID to complete transactions, which will prevent users’ information from being leaked out. And users also add any credit card information and all will be saved to the wallet.
4.2. Samsung Pay
Samsung Pay is an unique service of Samsung, and developed by themselves. Like Apple Pay, this service is also a payment service, but it has more advantages when it supports payments with magnetic card machines, not just NFC because Samsung acquired Magnetic Secure Transmission from Loopay. This is the reason why Samsung Pay can be used at various stores.
4.3. Android Pay
Android Pay is a payment service replacing Google Pay simply because it doesn’t complete with the infrastructure yet. For an open platform, it is available for many devices beside Apple Pay, which means that if your phone must have NFC chip and has installed Android 4.4 above in order to use Android Pay.
Above is a little sharing of BAP that you can understand about mobile wallet that is a part of Blockchain. Besides, we also have deep knowledge of other technologies including Big Data, AI, Web Services, and more that we always want to share with you. So please don’t forget to visit our page to get new articles every week.