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When you are at the cash register this holiday season, you can juggle your bags and search your purse or purse for your credit or debit card. You can also use the phone you already have or the new smart watch attached to your wrist. Many stores are now accepting mobile wallets, a technology that allows customers to make payments via a smartphone or by watching.
Mobile wallets come in different digital forms. There are device-specific platforms, such as Apple Pay and Samsung Pay, compatible with Apple and Samsung devices, respectively. Google Pay works with multiple platforms, including Android devices.
There are also merchant apps, such as Starbucks and Walmart, that have mobile wallet features, but can only be used in specific stores. About one-third of smartphone owners who access mobile wallets use those downloaded from specific retailers, explains Karen Augustine, head of primary data services at Mercator Advisory Group, a payment consulting and advisory firm.
Nevertheless, many consumers remain loyal to their cards due to security concerns or the familiarity of the good old plastic. But if you're ready to try mobile wallets, here's what you need to know to get started.
Where mobile portals work best.
Buyers who do not want to wear wallets and physical cards – or who are afraid of losing a card – may find the wallets useful. Many young early adopters are young adults who wear smartwatches or carry a phone almost everywhere and are willing to try new forms of payment, says Augustine.
Those looking for an easier way to track rewards in-store could also benefit from mobile wallets. A mobile wallet can keep track of the rewards program information, making it easier to obtain credits for eligible purchases. Merchants and credit card issuers can also offer bonus rewards for mobile wallet transactions.
HOW MOBILE PORTFOLIOS WORKS
To get started, you need to upload your billing information to your preferred mobile wallet device. This usually involves entering a credit or debit card number and a security code, as well as accepting the terms and conditions of the mobile application.
When it's time to make a payment, show your device at the payline. Generally, you complete the transaction by placing the device near the terminal and scanning a barcode or using a biometric reader that can, for example, scan your fingerprint to validate your purchase.
THE ADOPTION OF THE MOBILE PORTFOLIO HAS BEEN FIXED.
Despite the ease of use of mobile wallets, less than half of smartphone owners use this technology, and their adoption has not progressed in the past three years, according to Augustine. One problem may be that some do not consider this to be much more convenient than using a regular credit or debit card, she says.
Concerns about collateral are another problem. Many consumers are more concerned about the security of mobile wallet payments than traditional card payments, said Ryan Grogman, senior vice president and chief practice officer at Boston Retail Partners, a leading business consulting firm. detail. However, mobile wallets offer some security benefits over ordinary credit and debit cards.
HOW IS BANKING INFORMATION SECURE?
Mobile wallets rely on Near Field Communication, or NFC, which uses a chip in the mobile device to communicate wirelessly with the merchant's payment terminal. The devices communicate using short-term special codes to verify the identity of customers and do not reveal credit card numbers.
In addition to NFC technology, smartphones usually add their own layer of security. You may need to use a fingerprint reader or enter a code to unlock a screen, for example, to access the device and its digital wallet.
If a consumer loses a smartphone or watch, he knows that his information probably lives behind a locked screen and that his sensitive content can be erased remotely. With a physical card, a criminal could steal it and start making fraudulent purchases even before the consumer knows the card is gone.
Most people have a multitude of payment choices, and they do not hesitate to juggle and pick up their plastic at the checkout counter. But this material in their hand or on their wrist can also be another way to pay for their holiday purchases.
This article was provided to The Associated Press by the NerdWallet Personal Finance website. Margarette Burnette is a writer at NerdWallet. Email: [email protected]. Twitter: @margarette.
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