Payment solutions for physical stores.
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As you’ve probably noticed by now, we spend a lot of time on our phones. In fact, the average adult spends about four hours a day on their mobile device. With that in mind it’s no surprise that our payments are also going mobile. Here are three big reasons why consumers like to pay with their phones.
The big phone manufacturers now offer their own mobile wallets that are built around a technology we already know and love: card payments. The idea behind these wallets is rather simple: solutions like Apple Pay or Samsung Pay simply convert your physical cards into digital ones that you keep on your phone.
But if the mobile wallets are really just card payments with a twist, why should we use them when paying at the store? Here are three good reasons.
One of the biggest benefit of using these mobile wallets is that they offer an extra level of security. New phones use smart ways of authentication, like face-id, fingerprints and passwords, to make sure that only you can use them. That same technology is also used when you make a payment with most wallets, meaning that a thief who steals your phone won’t be able to pay with it.
Another smart security feature that is used by these wallets is tokenization. Tokenization means that the phone doesn’t send your actual card data to the merchant when paying. The wallet instead sends a token, a computer generated number that is only used for that specific transaction and is verified by the bank that issued that card. If a hacker steals that data, it is essentially useless.
The second big benefit of mobile wallets, and perhaps the one that will be most important to users, is speed. Since most of us are already walking around with our phones in our hands, mobile wallets save time. Instead of putting down your phone to pick up your card, you just hold the phone up to a contactless payment terminal. And if you are shopping online, you just click a button on your phone to get your card details filled in automatically. For every transactions you save a few seconds and, as we all know, those seconds are a valuable commodity in today’s world.
The third benefit, which is closely tied to the second one, is convenience. Using a mobile wallet allows you to digitally store all your different payment cards in one place, with no risk of misplacing them somewhere. The wallet can also give you a better overview of your spending by letting you know how much you’ve spent on different types of purchases throughout the month. As mentioned before, the wallets also reduce the number of steps in online checkouts. Instead of requiring you to find your card and type in your card details on a merchant’s checkout page, the data is filled out automatically. As any online merchant will tell you, this reduced friction can lead to more completed purchases.
So why isn’t everyone using their phones to pay? Well, as with any new technology adoption takes time and many people are weary of trying “something new” when it comes to their money. Another obstacle is that your card issuing bank has to be on board, and not all banks support wallets like Apple Pay or Samsung Pay. But as more and more of our lives are handled on the phone, chances are that it’s only a matter of time before banks and consumers start thinking mobile-first when it comes to payments.