Role of Virtual Wallets in Revolutionizing Money Transactions
Google wallet and Apple Pay are services which help you make payments through your mobile device. Even as many of you may not be aware of Google wallet, most of you would have used it if you have bought apps or any in-app purchases you made through the Google play store. The same applies to Apple Pay as well. However, Google wallet is available on iPhone’s app store but the Apple Pay is not available on Google play.
A recent survey in the United States shows only a little more than 1% of retail transactions are made through Apple Pay and about 7.2 percent using Google wallet. While the statistics seem miniscule at first; if you put it differently about 9 % of all retail transactions in the United States have now changed to these revolutionary methods.
How does it work?
These services use a technology which is not quite that new – NFC (Near Field Communication). First, the user has to authenticate their Credit/Debit card or other banking account details with the app. Once authenticated, you can use the account to make payments.
When you have to make payments at a retail store, you have turn on the app, and keep it near the NFC reader of the store at a distance not more than 2 inches. Once detected, the retailer’s reader will initiate transaction and the App user should tap ‘Pay’ – Done! While it makes it convenient and faster, it also makes it safer as you don’t have carry your card if you have a habit of losing them.
Yes! You can do much more; you can link gift cards, cash-in offer coupons and loyalty points and relevant details too to Google wallet. So, it becomes your virtual wallet and it enables you to collect loyalty points, cashes in offer coupons when needed and reminds to use your gift cards before they expire.
Virtual wallets are completely safe, safer than credit/debit cards and are very easy to deactivate in case of phone loss/theft.
Like the move from paper currency to credit cards, money transaction through virtual wallets is the way to go in the future!