Article by Total Merchants.
Summary: The rise of digital wallets has provided consumers with a trusted alternate payment method.
Since their birth, digital wallets have exponentially worked there way into becoming a global trend, as well as one of the most convenient ways to pay for goods or services.
What are Digital Wallets?
First of all, if you’re unfamiliar with digital wallets, they are essentially software-engineered platforms that assist in the transfer of money from one account to another – usually vendor or a retailer. They are typically used to pay for goods or services from anywhere in the world and allow for much more flexibility than traditional payment methods. And, with the rise of smartphone usage, expect there to be a substantial rise in digital wallets over wireless credit card processing methods in the future.
High-Tech Security Measures – Slow to Develop or Quick to Act?
With the implementation of microchips on credit cards and debit cards, high-tech security measures are being adopted to prevent thieves and criminals from stealing personal information. However, they also take a notable amount of time for the transaction to complete due to this security wall. This slowdown effectively hurts businesses and consumers in the long run, which is why merchant account providers are becoming more favorable for retailers.
Digital wallets on the other hand, utilize Near Field Communication (NFC), which transfers data using a wireless protocol. Additionally, smartphones are now capable of storing passwords via fingerprint, making the transaction run much smoother and quicker – without compromising security.
Owning a digital wallet comes with a plethora of benefits. For one, you can link the digital wallet to other bank accounts to provide you with a wide array of payment options without having to use a checkbook. You can also designate this as your primary payment method if you prefer.
When it comes to financial technology, digital wallets have taken a giant leap towards becoming the preferred payment method of the future. And, it’s only a matter of time before they start replacing other methods due to their enhanced security, encryption and smartphone capability, and versatility.