Sometimes, the words ‘mobile wallet’ and ‘digital wallet’ are used interchangeably, but there is a slight and important difference. Mobile apps are installed in apps on mobile devices, and digital wallets may be accessed through the internet on a laptop, desktop, or mobile device. Some of the widely and popularly used mobile wallets are Samsung Pay, Apple pay, and Android Pay. Other popular ones are brand specific including Capital One wallet, Walmart Pay, and many more. Mobile payment startups have entered the mobile wallet action, and they are adding new features to manage debit and credit card transactions.
With these new cards, you can track gift cards and loyalty programs, and they are replacing the plastic as well. The transactions that are made today using the mobile wallet apps offer safe checkout and are more secure compared to the ones made by physically swiping the credit or debit card. These apps use encryption technology that was used once by chip cards. To provide more benefits, mobile payment transactions are completed very quickly compared to chip card transactions. Every time you use a trusted solution, you use a one-time token or password, and your information is not shared with merchants.
The emergence of mobile money
The world economy is growing at a rapid pace, and so, the importance of mobile money cannot be underestimated. The idea of digital wallets can help a bank reach the inaccessible markets. Every person has a financial requirement, but the banks have mostly focused on those markets that have huge savings, as banks can access them easily. Even the sections that are thought as unbankable markets possess huge financial needs. However, nowadays, the banks are focusing a lot on digital currencies because they have several benefits. The transaction costs are much less compared to transactions that are made with credit cards or PayPal.
There is no involvement of borders because digital money is used online. Traditionally, you needed to pay fees to send money abroad but sending a digital currency does not involve cost. You can send your money to any place in the world without any additional fee. Banks mostly charge a fee to their clients every month. Sometimes, banks even charge hidden costs. However, a person can sign up a digital wallet online, but he does not need to pay any hidden charge or fee. Opening a bank account is a difficult job, and you have to provide a lot of personal information including identity proof and address. Besides this, banks carry out background checks too.
Mastercard has created a foundation for trusted and secure digital payments and safe checkout so you can have peace of mind. Whether it’s online, in-store, or mobiles, you can focus on things that matter. Mastercard’s network offers you digital payment security and all your personal details are kept confidential. You can also add your entire debit card, credit card, small and prepaid business cards to the digital wallets. Additionally, you can use this card across several merchants all over the world.