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5 Things You Need To Know About Paying With Your Mobile Wallet

5 Things You Need To Know About Paying With Your Mobile Wallet

According to the National Retail Federation, this holiday shopping season, consumers are reaching their wallet a lot—spend nearly $656 billion. But while you are muddling around for your cards, you might see the person next to you simply tap their phone on the mobile payment reader and go on their merry way.

According to a Capital One Wallet Survey, almost one in four consumers are making payments via their mobile wallet this holiday. Other studies reveal that 54 percent of shoppers have used their smart phones in some capacity.

Around $27 billion of sales volume is recorded this year in the U.S, which is still small, but adoption by merchants and consumers is on the peak. According to an eMarketer report, mobile payments by the end of 2019, in the U.S are expected to reach $210 billion.

If you are still not sure to register with your mobile wallet, here is what you need to learn about the big three: Android Pay, Apple Pay, and Samsung Pay.

1. Mobile wallet is much safer than swiping a plastic card or online shopping

Unlike Amazon, Android Pay, Apple Pay, and Samsung Pay do not use consumer card information for transactions. But, they generate tokens that work like credit card numbers and become useless if get stolen.

Once your card gets registered with the mobile wallet app, the information gets stored in a token vault and managed by your service provider. Rob Clyde, board director of the international IT governance trade group ISACA says, That “reduces the attack surface to a few players—banks and other organizations where security is their primary job.”

In case if you lose your smart watch or phone, simply deregister your card from the mobile provider account at Find My Mobile Samsung, or icloud, My Account Google and re-register your credit card on another device. Remember, not all apps use tokenization.

2. Mobile wallets are faster than the chip readers

According to a Wall Street Journal report,  it takes maximum 13 seconds to pay with a chip card, on the contrast, while using a mobile wallet it only takes 6 seconds on an   average. To pay with a mobile wallet, you need to hold your device close to the terminal until it beeps, after which type in your PIN code or you may choose to scan your fingerprints to complete the transaction process.

3. Saving money is easier with mobile wallets

You can save good money by using mobile wallets. For instance, they offer you reward points same as credit cards or remind you before your coupon expires. Think of the smarter app which keeps you updated in real time about your coupons, tickets, loyalty cards and boarding passes.

To capture new customers Google, Apple, and Samsung offer exclusive deals this holiday for their mobile wallet users. Between December 19 to 24, Samsung Pay is giving out quadruple points each transaction. In 2015, Android Pay was promoted by Google, which offers “Tap 10” reward program for those who use the application at least 10 times or use Google Play store to make the downloads.

4. Not everyone accepts mobile wallet payments

Many, but not all,  restaurants and retail shops accept wallet payments. Android Pay and Apple Pay both depend on the NFC terminal, whereas, Samsung is compatible with both NFC and traditional card reader. 90% of the top retailers who accepts credit card payments also accept Samsung Pay. On the contrast, 2 million merchants accept Android and Apple Pay.

5. Consumers don’t ditch your physical wallet yet

“If you only shop, eat, and bank at certain brands, you may be able to get by for a while without a physical wallet,” says Rekha Ramesh, head of global IT and digital at ‘Daymon.’ There are certain merchants however, that accept cash only and so you cannot use your mobile wallet.

United Financial Counselors strives  to deliver the best services in Connecticut and Florida offering  services such as budget  and financial freedom counseling,  foreclosure prevention counseling, pre and post-bankruptcy counseling,  credit counseling, and free educational seminars.  Should you have any questions, or want to schedule an appointment, click ‘Contact Us Now’ form and fill the required fields.

Be informed! Raise your level of financial literacy by visiting our website United Counselors. This is an informative blog  that is updated daily for our visitors.

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