Technology is fast replacing the traditional ways of doing things. For generations, people have been carrying wallets around, with cash and credit cards competing for space. Things are fast changing, however, and with the advent of mobile wallets, physical wallets might soon be a thing of the past.

A mobile wallet allows you to make transactions from the safety of your mobile device at designated terminals. Mobile wallets are encrypted, keeping your information safe from hackers. Swiping a card with magnetic strips is becoming riskier as crooks have devised ways to steal your information and subsequently, your money. Why are mobile wallets replacing physical wallets? According to a study, it was estimated that at least 2.1 billion consumers will use mobile wallets in 2019.

Mobile Wallets are Safer

Walking around with a wallet full of cash is risky ­– it could be lost or stolen. A mobile wallet far outweighs a physical wallet in terms of safety. A mobile wallet holds all your payment information but has additional safety measures in place. Smartphones usually have a passocode (or even biometric security) in place, but most mobile wallets also have a feature that allows users to deactivate the wallet in the event that a phone is stolen.

Encryption

When someone loses a physical wallet, it is usually unlikely that they will find it, leaving cards compromised. With a mobile all of your data is encrypted, ensuring that it is safe from hackers. During a transaction, the POS (point of sale) reads the information through NFC (near field communication) which allows devices to communicate within a small distance. A card provider is the only one who can decrypt this information, verify the details of the payment, then dispatch the information to your payment processor. The payment processor then makes payment to the store, and the transaction is complete. This process is much safer than dealing with physical cards, which can be easily intercepted.

Convenience

Imagine not having to carry any of your cards around – or even your driver’s licence or ID. The mobile wallet comes in handy if you happen to lose or forget these documents. If you go to a store registered with a mobile wallet service provider, you can conveniently pay for goods or services. In this tech-savvy generation, very few people forget their phones at home. The mobile wallet saves the hassle of having to search for a wallet in the morning, and keeps all of you cards aggregated into a device you already carry.

Summary

Mobile wallets are slowly gaining traction and the traditional wallet is starting to be a thing of the past. Some people are still, however, holding on to the physical wallet. The mobile wallet is safe to carry around, secure from hackers and convenient. Change is inevitable and in the near future, the mobile wallet may, in fact, replace traditional wallets.