Mobile Wallet – A Future of Retail Banking
If you want to know the future of retail banking then here is the answer – “Mobile Wallet”. Mobile Wallet is the emerging technology that offers convenience in banking and payment transfers for paying retailers bills. In a golden era of mobile technology, people are looking for fast, easy & smart solutions everywhere.
What is Mobile Wallet?The concept of “Mobile Wallet” is derived from traditional wallets. Wallets basically serve the purpose of carrying cash, cards, coupons, identity proofs etc. that you will need to make purchases. Mobile wallets extend the concept to match the digital age needs. At present, start-ups companies are more interested in one of the successful business ideas “Mobile Wallet”. Wallets will gain traction as more merchants come into play. With the introduction of payment banks, prepaid instruments will have higher usage. With the younger lot more comfortable with handheld devices, it may be the only way to grow the retail business, reckoned analysts.
How does a mobile wallet work?Customer will first need to download the smartphone application that offers the “Mobile Wallet” service. With the market growing for Mobile Wallet, many companies have entered into this segment with their own services or apps. In the U.S., they include companies such as Google, Amazon, PayPal, Square, and Apple. Once the wallet is downloaded and installed to the smartphone, the customer can store their credit/debit card details for future use. There is an additional security provided to ensure protection of the details provided here. A customer can utilize all of their stored information simply by opening an app on their phone, entering their PIN/password or verifying using their fingerprints, and then selecting the information they want to access on the app. The app then utilizes information using transfer technology such as Near-Field Communications (NFC) to interact with mobile wallet ready payment terminals. This payment terminal will receive the card information and process the transaction. After successful transaction the amount is being deducted from customer’s account and added into merchant’s account.
Role of Mobile Wallets in Payment Transaction:
- Mobile wallets store your credit or debit card securely
- They may also store your loyalty cards, coupons, tickets, etc.
- They communicate with terminals using a variety of technologies
- Direct mobile billing
- These wallets also enable you to shop online, buy movie tickets, facilitate recharges and pay for other services instantly.
Advantages of Mobile Wallets:
- Business benefits – With the increased number of mobile wallet technology, it helps boost the different businesses of varying sizes
- Reduced fraud – Mobile Wallets are harder to steal or duplicate than physical cards
- Better customer reliability – Built through deals that are sent directly to smartphones
- Reduced payment time – With quick and easy interface the payment time will be reeducated as compare to traditional payment system.
- Lower transaction cost – Processing fees are expected to decrease over time relative to traditional cards.