Paper money? Metal coins? Plastic credit cards? Who needs those? You’re living in the future — all you need is a mobile wallet! Here’s how to decide if this money tool is right for you.
What Is a Mobile Wallet?
What do you keep in your wallet? You almost certainly have bills and maybe coins in there. And you probably keep cards, such as your credit card, debit card, driver’s license and your “Buy 10 subs, Get 1 Free” loyalty card from your favorite sandwich shop. Well, your mobile wallet can store all your important financial cards — except the sandwich card, unfortunately. (Unless the sandwich shop has its own app, then maybe that one, too!)
A mobile wallet is an app on your cell phone or mobile device. It probably came with the device, so even if you’ve never used a digital wallet before, it may already be on your phone. You can populate it with your credit card, debit card, and other financial documents. You can then use the cards in your mobile wallet just as you use physical cards.
How Do Mobile Wallets Work?
Mobile wallets use near-field communication technology. To pay for something, you open the wallet app on your phone, select the card you want to use and then hold your phone close to the payment terminal near the cash register. Just as with cards that have chip technology, you don’t have to touch the terminal with your phone. You can just hold it an inch or two above the device and that should register the transaction.
What Are the Benefits of a Mobile Wallet?
The main benefit of a mobile wallet is convenience. As long as you have your phone, you’ll always be able to buy things — plus, you don’t have to weigh down your pockets with a physical wallet.
Your mobile wallet can also act as a backup. If you lose your wallet or break your credit or debit card, you can still make purchases.
What Are the Drawbacks of a Mobile Wallet?
Many people are concerned about security. If somebody steals your phone, can they just use your cards to buy whatever they want? It’s highly unlikely.
It’s always wise to lock your phone. Whether you use a passcode, touch ID or face ID, you should be the only person able to open your phone. You can also further protect your digital wallet with a passcode. This makes it nearly impossible for somebody who has stolen your phone to use your mobile wallet.
In terms of someone hacking your data at a compromised payment terminal, that’s also unlikely. Mobile wallets use multiple layers of encryption and security to ensure that transactions are secure.
Go Digital With Vectra
According to Forbes Advisor, 53% of people use mobile wallets more often than traditional payment methods. Digital wallets are secure and easy to use. If you want to learn more about accessing your accounts digitally, please contact a Vectra Bank professional today and we can help!
