These days our world is bearing a striking resemblance to the iconic scenes of Back to the Future. Life-like holograms, motion sensor games, and the famed hoverboard have all become a reality. It seems the future is today.
Quite possibly the most notable area of technical advancement has been the miraculous evolution of the phone. Where have the alarm clocks, watches, music players, and calculators gone? They have conveniently been placed all together in the tremendously small device we know as the smartphone. The most recent item being replaced by the smartphone is your wallet.
Traditional wallets are slowly being converted to a new method of payment called Mobile Pay, also known as Tokenized Payment, Mobile Money or Mobile Wallet. Instead of using the traditional cash, check or credit cards, consumers can use their mobile device to pay for goods and services.
It’s estimated that around 39% of mobile phone consumers have made a mobile payment in 2016 and that percentage is anticipated to jump somewhere in the 70% range in 2017. Even though mobile money isn’t accepted everywhere, it’s clear that businesses are aware of the enormous growth that Mobile Pay presents. While you may not be using this system of payment today, it is likely you will be using it in the coming months or years.
Why Use Mobile Pay?
Easy to Use
Mobile Pay is easier than paying with cash or a card. To use your default card, all you have to do is scan your fingerprint and hold your phone within an inch of the contactless reader until you see “Done” and a checkmark on the display.
It might seem unlikely but Mobile Pay is safer than traditional credit cards. Apple Pay uses tokenization to encrypt your information. That means that even if hackers get a token, it’s completely useless to them because it’s encrypted. If you’re worried about someone stealing your phone and using your card, that’s not possible either because of dual-authentication. Without your PIN or fingerprint scan, they’re not able to get into your Mobile Wallet.
If there somehow is fraudulent use of your card through Mobile Pay, all credit/debit protection applies to mobile transactions.
Money is Dirty
For those of us who are particularly alarmed by germs, this is the most obvious reason. Money has more germs than your toilet so it’s best to not touch it if it’s not necessary.
Keeps You Organized
No more keeping track of paper receipts. Mobile Pay keeps an electronic record of your transactions, meaning all of your receipts are stored on your device.
It’s Going to be BIG
Mobile Pay may not be accepted everywhere quite yet, but it’s going to boom. In 2015 only 39% of smartphone user's made Mobile Pay transactions, but it’s projected that over 70% of smartphone users will be using this method of payment by 2017!
Judging by the rise in Mobile Pay transaction activity in 2016 alone, it appears this is the way of the future. You may not be utilizing this payment system yet, but because of the increased security and easy to use experience for consumers, it’s likely that Mobile Pay will be in your near future.
Written By: Brooke Thomas