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Following a slow start as an alternate form of payment, mobile wallets, such as those built into Samsung, Google, and Apple phones and watches, have taken off in the U.S. A mobile wallet is simply an app a user installs on their device. It securely holds a customer’s credit card information and can be used for contactless payments.
Contactless Payment
Consumers still rely on credit or debit cards, but the convenience of the mobile wallet means that the physical card is no longer necessary. In a post-COVID world, many customers don’t want to hand over a credit card and let a stranger touch it or swipe at a machine. Contactless payment means the consumer simply taps or holds their contactless card or smartphone near a compatible card reader. In the wake of a new national awareness about safety, and the desire to socially distance and limit contact during transactions, customers are increasingly exercising a preference for contactless payments and mobile wallets.
Ease of Use
Many consumers are already accustomed to a mobile wallet’s convenience and security. E-commerce giants, such as Amazon and eBay, already securely store consumers’ credit information in their version of a mobile wallet. On the consumer side, this simplifies payment and enables the “Buy Now” option, making shopping quicker and easier.
As shopping becomes faster and more convenient across online and brick-and-mortar stores, consumers bring those expectations wherever they go, whether it’s a food truck or the local farmer’s market. Once customers have experienced the ease of paying using a mobile wallet, the old way of paying can feel clunky.
As more consumers discover mobile payments’ convenience, they don’t have an incentive to return to the old ways of paying for things, further increasing the demand for contactless payment options.
Enhanced Security
In addition to ease of use, mobile wallets were designed with security in mind, deploying options such as fingerprint authentication and encrypted one-time-use tokens. Reduced risk of fraud paired with less need for personal contact during the payment process means that the mobile wallet will only continue to gain prominence among consumers, especially younger tech-savvy groups.
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