With the evolution of technology, our phones are now more advanced than ever. Smartphones now feature a camera, calculator, calendar, a radio and now a digital wallet. Consumers now have the convenience of managing their finances using their mobile device using this feature. In the event a physical wallet is lost the odds of finding it is low. However, if information is stored on the phone, it’s always retrievable. Apps like Apple Pay, Google Wallet and LoopPay, to name a few, make storing and accessing multiple credit cards and gift cards easy and convenient. The user is able store important credit card information in their phones and can trust that their sensitive information is safe and secure. And now that credit card information is on the phone the need to use a physical card to make a transaction is reduced.
How does it work and how safe is your information?
Digital wallets offer consumers both convenience and security. The days of carrying a cumbersome wallet is long gone. Several credit cards can be kept in the device at once but entire credit card information isn’t kept on the device. Often, only the last four digits of the card is visible. And in performing a transaction, Apple Pay gives its users the ability to use biometrics. No transaction can be initiated without a fingerprint.
In a transaction, credit card information is transmitted to a reader by a simple tap or wave of the hand. And this method can process just as easily, if not better than, a usual card swipe. LoopPay works by putting an alternating current through an inductive loop, which can then be received by the magnetic read head of the credit card reader. The signal received from the device emulates the same magnetic field change as a magnetic stripe card when swiped across the same read head. Every transaction undergoes an extra layer of protection called tokenization. Tokenization ensures that each credit card transaction made is secure by incorporating a series of symbols which replaces sensitive data and retains pertinent information about the card. And each series of symbols can only be used once and can never be duplicated.
What’s in it for businesses?
Businesses that choose to upgrade their current POS (point-of-sale) system to accept this type of payment form have a lot to benefit. Owners will begin to see less shopping carts being abandoned because of a missing payment form, transaction time to be cut in half, which means money comes in sooner with less hassle, watch the lines at the checkout counter speed up and increase traffic to their businesses by appealing to tech-savvy shoppers. Owners can stay on the cutting edge of technology by incorporating this payment method into their businesses. It is likely that customers have access to various social media platforms right at their fingertips, and this places a business’ reputation up for scrutiny. Owners that choose not to upgrade their payment systems to accept digital wallets run the risk of losing customers.
The benefits of digital wallets are numerous. The consumer and business owner is seen as trendy and tech savvy, and definitely knowledgeable about the protection digital wallets have to offer as opposed to the physical card. With digital pay there is more to gain than to lose.