Thanks to the implementation of new technology, the mobile phone has now become the wallet, with all your financial transactions carried out through an app on your smartphone. Now you can go out without having to worry about forgetting your wallet, money, and credit cards.
Mobile payment is becoming more popular
Near Field Communication (NFC) is a relatively new technology that means any electronic item can be used as a payment method. Tap-and-go credit cards are becoming more popular, but the most popular new area of NFC tech is the adoption of mobile wallets, such as Google Pay and Apple Pay, which hold all your financial information, and can be used in conjunction with NFC-enabled terminals to pay for anything from a cup of coffee to car rentals. But this has all produced a paradox surrounding the technology that allows this ease of payment.
Concern over the security of mobile wallets
While many people are getting more used to the idea of using their phone to make payments, and many more want to, there is a lot of concern about the security of payments and what happens if someone loses their phone. Many of these “myths” are pure speculation and have no basis in actual fact, and leading digital security company, Gemalto, have provided some important information that can dispell those myths.
NFC payments are not secure
Payments through NFC-enabled devices use the same technology as chip and PIN cards, and are just as secure as jamming your card into the slot and entering your PIN, or tapping it against the terminal. The technology uses payment applications that require authentication by either Visa or MasterCard, so the certification process makes it more secure than old swipe cards.
The user has full control
When a consumer uses their mobile phone to make a payment, he can choose to enter his code manually each time or have the app auto-authorise all transactions. This gives the app user full control of their payment options, and the apps – which are mobile-based, not server-based – can be locked instantly.
Losing your mobile phone will be a nightmare of cancellations
In actuality, losing your mobile phone is much less troublesome than losing your physical wallet. If your phone is PIN protected, then nobody can open it anyway. However, if it is not, and you actually forgot to lock your wallet app, you have the option of calling your wallet provider, providing them with certain verification details, and then blocking the application and removing your card details from the app. These can be reinstalled once you have a new phone with the wallet provider’s app installed.
Technology is improving
In this technological age, the use of mobile phones and smartphones is constantly increasing. According to the annual Juniper Report, it is estimated that there will be a total of 3.9 billion NFC-enabled devices by the year 2020. And this is expected to keep increasing exponentially towards the next-gen technology.
It is not available locally
According to the very same Juniper report, the spread of mobile payment platforms around the world is on the rise, with more new NFC-enabled terminals being requested every day. The migration to mobile wallets is fully supported by both Visa and MasterCard, as well as China Union Pay. Moreover, international giants like Google, Apple, and Samsung are more involved with the distribution of terminals in developing countries, as well as first-world countries. This is accelerating the spread of mobile payment terminals worldwide.
The mobile wallet will end the use of cash
While it is a nice idea to have a world where cash is a thing of the past, it is never likely to happen. Imagining the market in ten years is hard, but it is definitely clear that contactless cards and mobile wallets will be the predominant payment option. However, mobile wallets are mainly designed for lower-value transactions and are merely a substitute for cash, not a replacement. Cash transaction still make up more than 80 percent of all global transactions.
It hardly seems real using a phone to pay
NFC technology has already been fully deployed in over 70 countries worldwide. It is now being used extensively in North America, South America, Africa, Europe, Asia, and Australasia. And China is one of the major contributors to the increase in use, with billions of Chinese using mobile payments every day.
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