The Mobile Wallet
“What is a ‘mobile’ wallet?!” I heard you say. For those of you who haven’t heard, think mobile wallet as an e-wallet that allows you to pay for everything you need without the need of carrying a physical wallet.
All that the users need to do is tap your phone for payment including when you are using your coupons to pay, then it will automatically update your loyalty card. On top of this, it also stores receipts, boarding passes, gift cards and of course, storing your credit cards digitally.
So the idea for mobile wallet came around out of users acceptance method of contactless payment. Research showed that we did not really care much about whether to swipe or tap our card when paying. Well duh, who does when most of us are busy multi-tasking over the counter whilst we are grocery shopping, tweeting “Massive discount on Tim Tam @ColesAU stores – get them while they last!!!” and checking Facey for any new friend requests, notifications and even... pokes which in my opinion has taken precedence lately as part of a new method to flirt.
To say mobile wallet is the clever ‘new’ way of shopping is an understatement. It is nifty, takes the bulk out of your bag or pants and it avoids wearing you down like a hunchback when walking. So what is not to love about this e-wallet?
Well the biggest concern is mobile wallet security. Despite all the hype and ‘pros’ about mobile wallet, users at this stage are still quite concerned of how secure their cards information can be stored by this new technology and how transactions can be carried out safely through the use of NFC enabled devices.
NFC chips or ‘Near Field Communication’ has already been used widely in credit cards and e-smart cards, now the use of mobile wallet is just a supplement to these cards by including everything that you normally put in your wallet in the electronic version.
Google and Paypal had since jumped on board with the launch of its own wallet earlier last year. While Blackberry had just recently joined the mobile wallet craze by allowing NFC users in Turkey to have access to their mobile wallet for the first time, through Mastercard Paypass terminals which allowed these users to pay for transactions up to US$19; and purchases higher than that will require PIN or signature.
However another drawback is how soon the merchants are willing to invest in new payment terminals when they couldn’t see any reduction in the existing transaction fees? As with new technologies it’d be interesting to see if the hype will catch on with the mass usage. For now, let’s watch this space!
Beatrix Tanuwidjaja
Starcom
About this blog
Beatrix works for Starcom as one of the Digital geeks, who is interested in the latest trends, innovations and developments of online technology which shapes the way we connect, communicate and transact forever. Besides this blog, she could also be found tweeting as @Beatrixtj and on LinkedIn as Beatrix Tanuwidjaja.