Smartphones have changed how we do things every day. We use them to call rides, order food, shop for groceries, and talk to others. Now, we can even use our smartphones to pay for things at big stores like Target and Walmart. This is because of digital wallets, like Apple Pay, Android Pay, and Samsung Pay. Soon, we might not need credit cards or cash anymore.
Learning about mobile payments, or digital wallets, now will help you stay updated and feel at ease with this new technology.
Digital Wallets, Global Trends
Studies have found that digital wallets are becoming more popular worldwide, from Europe to Asia. Visa European News reported significant changes in how people pay for things in recent years. The number of Europeans using a mobile device for payments has tripled since 2015, from 18% to 54%.
In Britain, 74% of consumers are “Mobile Payments users” who handle their money or make payments using a mobile device. The fastest-growing group adopting mobile banking is people aged 55 to 64.
In China, about 65 percent of smartphone users, or roughly 425 million people, regularly make payments on their phones. According to Mobile World Live, this number has increased by seven points since December 2015.
However, the adoption of mobile payments in the US is slower compared to China. But it’s expected to increase in the future. Unlike in Europe, where older adults are embracing mobile payments, in the US, younger people aged 18 to 32 are the early adopters, rather than the Baby Boomer generation.
Mobile Money Mindset in the US
Why is the US slow to adopt mobile wallets? One reason is the worry about security. However, using mobile payments is actually very safe.
When you pay with your phone, the retailer doesn’t get your card number. Each purchase has a unique transaction number, not your actual card or account number. Plus, your account info isn’t stored on your phone. It’s encrypted and can only be accessed with a passcode or fingerprint, depending on how you set up your phone.
Also, if you lose your credit card or cash, someone could pick them up and use them. But if you lose your phone, your bank account is safer because it’s protected by your fingerprint or passcode. Using a mobile wallet makes it almost impossible to be a victim of fraud or identity theft.
So How Do I Get Started?
To start using mobile payments, first, download payment apps like Apple Wallet, Android Pay, or Samsung Pay, or set up ones already on your phone. Then, add your credit card information by taking a photo of your card. Some credit card companies may need you to call to confirm your card, which the app guides you through. You can add as many credit cards as you want.
When you’re ready to shop, check the symbols at the store’s terminal to see if they accept the mobile payments you’ve set up. If they do, simply hold your phone close to the NFC card terminal and use your fingerprint or enter your passcode on your phone’s touch ID sensor. That’s it! Just tap and pay!
Don’t Be Shy
The cashier can assist you the first time if you’re unsure. Once you realize how simple it is, you might consider using mobile payments more often. However, besides security worries, another reason mobile payments aren’t used more in the US is that not all stores accept them. This is changing fast, but for now, it’s a good idea to keep cash and credit cards with you for smaller shops, tips, and parking fees.
