Mobile payments have quickly become a popular method of payment with shoppers. Instead of using cash or credit card, consumers have been utilizing mobile wallets on their smartphones to make their in-store purchases. Here is an informative Q&A that let you better understand one of the most used digital payments – mobile wallet.
Q: What is a mobile wallet?
A: A mobile wallet is a type of payment service through which businesses and individuals can receive and send money via mobile devices.
Q: How does a mobile wallet work?
A: The digitized valuables stored in a mobile wallet can be represented in many different forms. They might take the form of a number, like on a credit card or a password, a digital certificate, a QR code, an image of the owner or something else. These representations are linked to the owner’s sensitive personal information, which means that mobile wallets provide valuable access but also require protection.
Q: What are the most popular examples of mobile wallet?
A: Mobile wallets such as Paypal, Ali Pay and Samsung Pay are some of the popular wallets in the market.
Q: What form of technology enables mobile wallets?
A: Apple Pay, Android Pay and Samsung Pay are all supported by a form of technology called Near-Field Communication (NFC). NFC uses chips embedded in smartphones and functions as a segment of a wireless link. Once initiated by another chip device, the smartphone can transfer small quantities of data by being held just a few centimetres away from the terminal. Merchants can easily accept all mobile wallets with an NFC-enabled terminal.
Q: How do you make a payment with mobile wallet?
A: For instance, Apple Pay requires users to use the Touch ID feature and scan their fingerprint on their device before making a payment. However, users do not have to unlock their phones to do this, cutting down the amount of time it takes to process the transaction.
Q: What keeps mobile wallets secure?
A: Mobile wallets usually will use a tokenization process to keep the user’s financial information safe and secure. Instead of each mobile wallet sending the user’s credit/debit card number to the merchant, a one-time “token” is sent to the merchant’s terminal, protecting the payment details throughout the payment process. The card information instead is only stored on the consumer’s device and is never sent directly to the merchant. If a consumer’s phone is stolen or lost, each mobile wallet has the capability for the user to wipe their device completely clean for added protection.
Mobile wallets are certainly growing in popularity and are continuing to become more pronounced within the payment industry. Many merchants start to accept mobile payments as it is convenient and speedy.
Have you experienced making purchases using a mobile wallet?