The mobile wallet is fast becoming the preferred method of doing business, even as credit cards begin evolving. While adoption rates are technically low compared to cash, the technology is very new and there are already many users and retailers utilizing phones at the credit card swipe machine to complete payments. That’s thanks to big players like both Apple and Google, but there are other companies that are helping to facilitate international money transfers.
Those transfers are all happening across mobile devices. Wallets are also pre-loaded, and separate from a bank account. If someone were to gain access to a digital wallet, they would only be able to steal a small amount of money that had been loaded into it.
Companies such as Charge.com are helping consumers and retailers make the transition to digital payments, mostly through e-commerce. However, these benefits trickle down to the register. Investment in POS systems in-store typically feature online components and the ability to connect via smartphone.
This information is also encrypted by the NFC chip inside the phone, making it difficult to someone to steal account data using a wireless connection. In addition, there is a two-factor authentication used during these transactions that helps to verify the exchange took place. The user may receive a text message, or their may be some kind of authorization within the app itself.
Mobile is rising quickly, especially when compared to the rise of credit cards and checks. Mobile payments will soon be the standard once mobile adoption rates rise.