Our world has evolved, and countries are fast becoming a cashless society. Sweden, Denmark, and Norway have implemented cashless payments using mobile wallets for transactions. In these countries, all financial transactions are done in an electronic format. There is no longer the use of banknotes; money does not exchange hands, as they use mobile wallets and other electronic payment methods.
Payment transactions
Mobile wallets are commonly used to make a payment transaction. Since these apps, also known as e-wallets or digital wallets, are used for this function, the transaction amounts for 2019 have reached over a staggering $500 billion.
E-wallet storage
E-wallets store data, such as debit and credit card information. It may also store vouchers, discounts, and loyalty rewards. When used as a payment method, such as buying food in a place that accepts digital payments, the amount to be paid can be deducted due to the applicable discounts in the app. After the transaction, the loyalty rewards stored to be used on-demand. Due to the functionality of these apps, providing more than payment transactions, mobile wallets are used by over 5 billion people worldwide
A few of the advantages of using a mobile wallet are:
Fraud reduction. The debit/credit card numbers are not visible when using an e-wallet, unlike plastic cards that expose those numbers that can be used for fraudulent transactions. Mobile wallets store encrypted data like credit card information. This security measure transmits the sensitive data in random character strings as payment codes to keep your details safe. All security measures of physical cards are also integrated into e-wallets.
Time-saving. Payment transactions can be completed in less than a minute. When in a store, payments are made by simply holding the mobile device that has the app over a terminal. The app also has the capacity to send and receive money.
Financial organizer. An e-wallet has various functions. It works to hold credit/debit cards, loyalty cards, and vouchers. A mobile wallet may also have payment methods for international and domestic bank-to-bank transactions. The functionality extends to more, such as funding cards, sending money from person-to-person, and using it for bank accounts.
User-experience. The advantages of using a mobile wallet include the user experience. Easy to use, tapping is the key to make transactions. The information needed is stored, so there is no longer any need to keep on keying it in. It is convenient as one no longer has to bring along things like a credit card, as the mobile device has the payment app.
All payment methods
Our mobile devices can contain e-wallet apps that have all payment methods necessary for us to no longer use banknotes. This convenience enables us to have fast transactions and be on top of the situation, as we can see in real-time what is happening to the funds in our accounts.
A cashless society
There might be times that a person cannot complete a transaction because of a connectivity issue or when the app crashes. These concerns can be addressed, and most apps are linked with a website that has the same functions. However, the advantages of mobile wallets far outweigh those concerns. Our global economy is destined to work as a cashless society, and in the future, mobile wallets will be able to perform more functions.