Mobile Wallet Technology

Among today’s latest advances in technology, mobile banking could possibly be the biggest and fastest breakthrough yet. Mobile wallets work by using communication chips inside smart phones, tablets, and other devices to transmit payments. When making a purchase, you simply open your app on your device, enter your customized PIN, and choose your account you wish to use. By the simple touch of your finger, you have transmitted your payment information! It is almost as if your device acts as a remote control to access your accounts. With more than 500 banks and credit unions utilizing mobile wallets and banking systems, it appears that the ever-evolving mobile wallet space is gaining success, with significance on convenience and security. “Debit cards and credit cards, which significantly reduced the need to carry “real” money around, still hold the disadvantage of theft or loss, which further increases interest in the mobile banking scope” (CHASE Paymentech). Essentially, mobile banking is encouraging financial institutions and mobile network service providers to converge.

Competition within the mobile banking system invention is just getting started. “Currently there are two notable mobile wallet providers that have the potential to dominate the space in the near term – Google Wallet and Softcard™” (CHASE Paymentech). By utilizing mobile banking, you are also saving money. Banks are not charging fees for mobile banking services. Mobile wallets also offer a savings system that lets you set aside money automatically. Many uses can be benefitted when using mobile wallets. “By far, checking financial account balances or transaction inquiries were the most common mobile banking activity, with 90 percent of mobile banking users having performed this function in the past 12 months” (Board of Governors of the Federal Reserve System).

There are several beneficial aspects of using a mobile wallet. Your payment method is much faster when depositing or accepting money via a...