Traditional wallets are slowly being converted to a new method of payment called Mobile Pay, also known as Tokenized Payment, Mobile Money, Mobile Wallet, or P2P. Instead of using traditional cash, check, or credit cards, consumers can use their mobile devices to pay for goods and services.
In 2018 approximately 55 million people in the US used a type of mobile payment. That's expected to jump to around 60 million in 2020. Mobile payment options have become more available as it's become clear that businesses have embraced the payment method. Especially P2P(peer-to-peer)payments available through bank and credit card apps. This allows you to split that dinner ticket between friends or pay your roommate for your half of the rent.
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 and Easy to Lose
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 not to touch it if it’s not necessary.
Not to mention all the times it manages to find a way out of your pocket. Nothing like that $10 you accidentally dropped in the parking lot while juggling your purchases, receipts, and keys.
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.
Written By: Brooke Thomas