A Mobile Wallet, as the name suggests, is a revolutionary concept to overcome the traditional way to pay your bills, send remittances or use it at POS (Point-of-service). Instead of going down your pocket and taking out the cash, digital transactions and commerce were introduced offering more convenience to fasten up the process of the transaction. Right from generating the invoice or bill to calculating the amount of change during a transaction, the motive of digitizing a financial deal was to decrease the total time taken by the former alternative. This concept, although required even the most tech-skeptic individuals to invest some time and understand the technology behind it, other than the intended advantages, it provided more than what the users had expected.
Digging into the History of Wallets
The first ‘Mobile Payment System’ although its patent was filed in 2000, the interoperability and acceptance by different mobile services began in the later period. The concept of micro-payment which was envisioned as a global technique to pay for the content, services, in-game purchases, and information all across the globe could facilitate transactions as small as 1 cent. Multiple venture-capitalist-funded-businesses emerged in the market but the second generation of Mobile Payment System outclassed all of them. During this time, a few models went obsolete, for instance, Zong mobile payment that used to add charges to the user’s mobile bill but then emerged international bill payment services, and what we today know as the 21st century model of mobile bill payment.
As per the data provided by Statista, the global digital exchanges and money transfer value has reached US$3,208,184 million in 2019, and by 2023, it is estimated at a staggering US$6,335,811 million. The reason behind its overwhelming success and its undoubted ability to emerge as a stepping stone for the next level digital exchanges, like the crypto-currency, is the wide range of advantages that it offers to the users, both at the customer and the service provider’s end.
What are the Advantages of Using Mobile Wallets?
Here is a list of all the advantages that mobile money users avail over traditional payment methods or even credit or debit card users.
Irrespective of the Operating System, device, or even country, any user can access mobile wallets and developed further after getting feedback from them. From the data generated by FAZRemit, we noticed that most of our users use their mobile phones to carry out transactions that make up a massive 84.5% of the total devices, among which android users outnumbered IOS users. That being said, it was clearly seen that the diversity among mobile users is boosting the overall growth of the mobile payment system. The reason for that being, the security offered by our platform, or in fact some other legitimate and secure transaction platforms.
Mobile transactions through FAZRemit use encrypted information, along with 2-step authentication, which is better than any cash or credit card. Furthermore, instead of owning and carrying multiple traditional transaction cards which one seldom uses, it is better to integrate all of them into one wallet. This would not only improve the ease of carrying out any transactions for the users but this would also ensure that all the transactions taking place can be easily monitored through legal agencies in case of suspicious transactions.
Also, in case of theft, unlike the cards or cash, one can remotely wipe out all the sensitive data or simply change his or her password or authentication properties.
Financial freedom and convenience
Carrying a bulky wallet in your pocket when you already own a mobile device that you never let go of, could be a subject of discussion among the future generations. In line with that, the mobile wallet provides the users with easy-to-use concise storage.
Right from one’s address proof, driver’s license, social security number to any other personal or professional document, everything is accessible without carrying a physical copy of it. In fact, it is hysterical that when we are already downloading our identification documents from a server and there is no actual need to get a physical authorization by a specific entity; we are still partially relying on digital signature which is not just easy to generate but also economically feasible.
What is the Biggest Challenge of the Mobile Wallet?
Banks across the globe have moved on to use EMV (Europay, MasterCard, Visa) payment that uses chips in debit and credit card payments instead of the past magnetic strips. On the other hand, in NFC payment, a specific QR code, a number code or a user’s face ID is generated as a personal identification format that ensures further security along with ease. Although the mobile payment offers several applications including
- NFC (Near-field-communication) that is capable of facilitating contactless payment(s) at POS (point of service),
- International remittances,
- Online bill payment,
- Global payment transaction data tracking and analysis, and
all of that while saving time, effort and money of the entities involved, it is on its way to becoming a prominent movement in the global financial transaction. At the same time, the biggest challenge mobile money faces is the same as that of any other innovation that affects a massive population, i.e, its acceptance in the market dominated by a majority of the population which is yet to overcome a long hangover of physical money. But the future seems to have a different plan!
Although the mobile POS payment is estimated
to overlap with the overall digital commerce, or in fact, become the new norm, this trend signifies that the future will be cash-less but the bigger question is –
Are we yet prepared to go card-less? If not, then when?
Or is it just another intermediary stage before reaching the ultimate?
And finally, what does the penultimate technology even mean?