Mobile Wallets: A New Revolution To The Payment Space

Mobile wallets or digital wallets or e-wallets are nothing but similar to the wallets that you keep in your pockets to store your money and cards. The only difference is that it is accessible in a virtual mode through mobile phones. Gone are the days when you had to carry cash in hand carefully every time from going shopping to travelling. Earlier, debit cards and credit cards were used to make the payment process easier. If you did not have cash, you could easily make payments through a swipe of the card. Now, it has become even simpler. All you have to do is a single click and your payment is done, hassle-free within seconds. 

Mobile wallets have revolutionised the way we make payments. Even if we don’t carry cash or credit or debit cards, we still have an option to pay for any purchase anywhere and anytime. In a mobile wallet, you can add your card details and bank account details and make payments through them without having the risk of losing them. Many of you might fear sharing your details with an online app, but a secured mobile app uses high technology which keeps all your details safe and confidential. 

The use of mobile wallets is growing rapidly. The speed, convenience and security it offers, are some of the major reasons for its growth. Further, many mobile payments apps offer great discounts and rewards while making payments through it. This is also a driving factor towards the increased use of mobile wallets.

Even before the pandemic, mobile wallets were widely used as alternative ways of payment, but the pandemic has increased it more. Since mobile payments involve the distance factor, there is no money transferring from one hand to another and hence, it is a safe way of making payments. According to a report, in 2020, 1.5 billion people will have used QR codes for payment to encourage cashless payments and this method of payment has risen by 11% in the United States during the pandemic.

These recent statistics reveal that the mobile wallet revolution has already begun and is achieving a massive growth rate.

  • The number of people using mobile wallets to make payments has expanded from 900 million to 1.48 billion during the pandemic.
  • By 2026, the mobile wallet market is estimated to become as large as $80 billion.
  • 66% of individuals admit that they use mobile wallets for payments regularly because it is more convenient as compared to other modes.
  • Discounts and rewards are the encouraging factors for 70% of millennials to make mobile payments.
  • 44.5% of all eCommerce transactions were done via mobile payments in the last year, which is double of payments done via debit cards and thrice of debit card payments.

Why Should You Use Mobile Wallets?

The above statistics might put you into thoughts about what is compelling this large number of people towards moving into using mobile wallets. Is that they offer something unbelievable? Probably not, but the immense benefits that they offer is worth seeing and opting for them. 

Wondering if you should also use them? Let’s have a look into their surfeit of advantages that might help you to make a clear decision.  

  1. They are convenient:  Mobile wallet transactions assure that the payment process is smooth. With a few clicks, you can pay the exact amount. No more handling cash, going to an ATM and withdrawing money and the stress of taking care of money while travelling.
  1. They are easily accessible: All your card details, account details are stored in one place and you don’t have to enter them every time you make payments. Moreover, you don’t need to carry anything extra except your mobile phone.
  1. They are quick and easy to use: With mobile wallets, your payment process is done in a matter of moments. Just pick up your phone, scan the QR code or enter the recipient’s details and tap the click button. You’re done! It’s that easy. Isn’t it? Once you get habituated with the ease it offers, there is no going back.
  1. Multiple uses: Whether you want to pay for buying groceries, or for making other transactions like paying electricity bills, recharging phones or DTH, booking movie and flight tickets, or transferring money to your family, friends or anyone else, mobile wallets are there to facilitate your process. Its wide range of uses is motivating people towards using it.
  1. Secured method: Your physical wallet can be lost or stolen, but your e-wallet cannot. Even if something happens to your mobile phone, your wallet account is always secured and can be accessed again. We all tend to think of frauds and thefts while considering online payments,  but this isn’t always the case. 

In transactions through mobile wallets, encrypted payment codes are used to maintain security and hence, no one can access your information. Further, during payments, no personal details like account number are shared with whom the payment is made. So, mobile wallets ensure security and fraud-free payments.

  1. Discounts and rewards: This is something that attracts everyone and let’s be honest, we all love getting rewards, however small they may be. Mobile wallets encourage you to use it more by providing exciting rewards, coupons, cash back, gift cards, and a lot more.

What Are Some Mobile Wallets You Can Use?

There is a pool of mobile wallets available in the digital space. You can choose to use any of them depending on your choice and comfort. The mobile wallet market has seen a massive rise in recent years, so let’s have a look at some of the leading options available.

  1. Apple Pay: Made for Apple users, Apple Pay lets users make digital payments. It can be used in iPhones, iPads and Apple watches.
  1. PayPal: It is one of the leading mobile wallet applications that let users make transactions without even the need of storing credit card information. You can store your funds in PayPal’s wallet, or even link your credit card or debit card to your account.
  1. Google Pay: A product of Google, it lets the users make payments in-store or online with their information stored in it. But, it is limited to Indian users only.
  1. Amazon Pay: Customers can make a payment using amazon pay with the help of credit and debit card details stored with Amazon. Every time you make a purchase using it, the e-commerce giant gets a commission.

Now that you have known the ins and outs of mobile wallets, make sure to use them for all your transactions safely. Though they are easy and reliable, they can have their disadvantages too. Make sure you choose an application that is trustworthy and ensures high-security options. You can’t afford to take any risks with your hard-earned money, so do your research before selecting a mobile wallet and maintain your safety to avoid risks and fraud.

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