There is constantly new technology coming out each and every year. Mobile phones are able to do a lot more now than they were a few years ago. Imagine going to the supermarket and being able to pay with your mobile phone. Well, now that is possible through something called the “mobile wallet.”
The mobile wallet allows customers to pay for their groceries by putting their mobile phone near a NFC (near field communication)-enabled payment terminal. This is the same technology used for contactless credit cards. Starbucks is already using similar technology by allowing customers to pay for their drinks through an application on their phone.
Mobile payments are becoming more popular each day. Forbes expects mobile wallet users to increase to 594 million by 2016. There are certain benefits to using the mobile wallet.
- It could speed up your checkout time, which means less time having to wait in line at the grocery store.
- Not having to carry around your wallet.
- Not having to carry around loose change.
- Allows more purchases to be made in a set time.
- Improve customer experience.
Although there are some good benefits from mobile wallet, there are some concerns that might cause people to be hesitant about using the mobile wallet.
- According to Forbes, security concerns may cause people to be hesitant about using the mobile wallet. Stores could fix this easily by keeping “all sensitive information ‘server-side’ up in the cloud behind multiple layers of protection.” However, the multiple layers of protections would cause transactions to be slower, which would defeat the purpose of having a mobile wallet. Also, a fast and reliable network is needed, which is not obtainable for some people depending on where their store is located.
- Another concern is that mobile wallets don’t really benefit the stores. The stores would need to invest in “new payment terminals, without seeing any reduction in existing elevated transaction fees.”
Now it’s your turn readers, what are your views on the mobile wallet? Leave your comments below, thank you!
I am currently attending the University of California, Riverside. I am also currently interning at IT Retail as an inbound marketer. My tasks as an IT Retail intern are writing blogs, updating our social media accounts, and optimizing our website.
