Mobile wallets have become the modern trend of online payment. rather than doing the tedious job of putting card information every single time for online payment now users can easily pay through their mobile wallets which are completely easy and time-saving.
Like credit and debit cards had allowed us to go cashless, mobile wallets have allowed us to go card-less. It has many advantages and some disadvantages associated with it.
Let’s go through them to understand how we can optimize the use of mobile wallet in our favor :
Security is the biggest feature of mobile wallet technology. It does not require your card number, CVV, pin number, or mobile number. It is independent of such information and that is why it cannot be manipulated or hacked.Every bank pays a hefty amount of money to its different clients every year because of debit/credit card fraud and it costs too much for banks to maintain the privacy of its client information.
Having a mobile wallet with you means you will not need to show your card’s information to a stranger person and if somebody hacks your information he would still need your phone or in some cases ( Google wallet) your fingerprint to deduct the amount.
2. Secrecy of data
Mobile wallets have been accepted by the users as they don’t save your data for further use and remain just a platform to make your transactions.When apple launched its wallet it said that it does not know that what did you purchase or paid. Your transaction is between you, your vendor and your bank. It was a pretty impressive statement with a business point of view as the customer feels safe using such wallets.
3. Better user experience
Apart from security, these mobile wallets emphasize on user experience so that user could easily follow the steps and make the payment. Many mobile wallets support layered protection means from conducting the transaction user has to input a security password or a 4-digit pin information into it.
4. Lighter pockets
Using a single mobile wallet user can save multiple credit/debit/bank account’s information in it. So it gives you an opportunity to travel with lighter pockets and lesser tension to carry cash and cards.
5. Time saving
Whenever we go shopping and pay with our debit and credit cards, vendor inputs the card details in the machine and till then we wait standing. Mobile wallet has saved us this time as we need not wait to make our payment through it.
Many times there are cash-back or discount rewards for people who use a mobile wallet to purchase some stuff or paying the bills. These rewards are also one of the coolest features of mobile wallets.
1. Mobile wallets are not universal
A majority of the people don’t use smartphones, in that too many people don’t have an Internet connection and those who have Internet connection merely a handful of people use mobile wallets. So we can say that only a small number of people use the mobile wallet as a payment option and depend heavily on cash and cards to make the transaction. Basically, mobile wallets have been limited to urban areas only where people are much aware of such technologies.
2. Internet Connectivity
Internet connectivity remains a bigger problem for a great number of people. If you are going to a hill station which does not have enough mobile towers to support the signal then Internet speed would be quite slow to perform a transaction. Many developing countries to don’t have a decent infrastructure to support a proper Internet connection to a large number of people.
3. No mobile no wallet
If your mobile has been lost then mobile wallet is also lost and you will have to wait till you don’t purchase a new mobile, download the mobile wallet app and insert all your information again.
4. Device failure
Smartphones are known for their hardware and software problems. If there is not enough storage on mobile then the user could not download the app, lower battery problems exists too, software compatibility always remains, etc. These device failures limit the use of mobile wallets.
It requires the quite large capital amount to start a mobile wallet business. There will be cost required for the development of the app and its implementation. Later there would be a requirement for hardware and network support for the smooth functioning of the app.
6. Compatibility issue
If you are using a windows smartphone, on an old version of android OS, or even iPhone 5 or iPhone 5S then there is a possibility that some mobile wallets will not support your mobile and you cannot enjoy its services.
Mobile wallets are quite new technology in the scene and many people are still skeptical about its usage and we will have to wait a little more to see mobile wallet becoming the primary payment option among the masses.