In recent years the ever growing Information Technology solutions have taken a lot of things away from us to give us better, easier and more convenient solutions. IT took away the cables that connected phones then it took away the contact diaries too. A mobile phone could help you make calls and store contacts and yet it was small enough to hold in your hand. New features such as cameras and web browsing were added to mobile phones as technology engulfed more areas of life. The cash and coinage became less important on being replaced mostly by credit cards.
Now, further improvements, inventions and innovations are changing the concept of a wallet altogether. The wallet in 2015 is not made of leather, it is nothing like the conventional wallet. That’s right, your pants will not have a bulky back pocket anymore and the load reduced in terms of pocket weight and mind space will not be replaced by anything. Instead the responsibility of carrying your money around will be taken up by a gadget that is already necessary to carry around, your mobile phone.
Ladies and gentlemen, in 2015 wallets are digital.
The concept or idea that computerizes your wallet is called Mobile Payments. As the name suggests Mobile payments are monetary transactions that are carried out through your cell phones. The concept is not new and has been around for some time. The emergence of a whole new section of e commerce encouraged many companies to join the fray. This means that if you are interested in using mobile payments you already have a lot of options to choose from. There are a number of mobile payment options available and they all have something unique to them. However, before we immediately get down to it we need to ascertain what the system is and how is it above the ordinary cash or credit card system.
What the system is?
As said above, a digital wallet is wholly different from a conventional one even though both have the same purpose. The mobile payments system consists of an application that can be downloaded on a smartphone. This app can then be linked to your bank account and becomes a portal through which you can access your money to make purchases. The system relies on a chip inside the mobile phone that uses the Near Field Communication (NFC) technology, this device has the ability to connect and communicate with other NFC enabled devices on being brought closer together. If you are shopping at a super store your mobile device will act as the credential and the device on the checkout counter will act as the reader. The information stored on your phone’s app will then be accessed by the reader and the required money will be retrieved, a simple and effective process to complete monetary interactions within seconds.
What mobile payments bring you
People are often found complaining about the problems that occur in all exchanges involving cash. Be it torn notes, old coins or unavailability of change all problems are practically non-existent with mobile payments. The greatest benefit is moving around with absolutely no cash. However, the competition mobile payments faces are Credit Cards which also provide the solution to all the problems posed by traditional money. However, Mobile Payments come with enough perks to outstrip Credit Cards easily and I’ll tell you how.
Mobile Payments are much more convenient than Credit Cards. The payment in the latest systems takes place by a simple wave of your smartphone in the face of the reader and you are free to go home with your shopping. In contrast, a transaction through the credit card asks for a swipe usually made by the employee, the machine will then slowly print a receipt and you’ll have to sign it before you leave. Mobile Payments will not delay your departure by printing a bill (it will automatically be stored in the app) and since no signature are needed.
A credit card can be used by a thief anywhere. Once he takes hold of it he can use the card and sign the receipt and be off. That’s where mobile payments win once again. The transaction will require the phone to be unlocked and the app pin code to be entered before the purchase can be made. Many apps come with finger print recognition before paying. The multi layered security is practically unbreakable.
Mobile payments are the latest form of technology designed to make an ordinary man’s life easier. This technology has removed leather wallets from many people’s pockets. Believe me when I say this: they’ve never been better off. The question is why are you still carrying your leather wallet?
About the Author:
Umar Jamshed is an IT expert and a former consultant with The World Bank. He is a graduate of Curtin University, Australia. He works for Boloro which is a mobile payment network.