Published On: Wed, Dec 2nd, 2015

The Mobile Wallet: Another Payment Option or a Passing Fad?

Mobile wallets are becoming more popular than ever. There are many reports in the news of their adoption by more and more people, and their popularity is expected to grow over the coming years.

Use of mobile wallets started off slowly, but now that Apple Pay has launched, it is building momentum. Apple Pay launched in the UK in July 2015, and it is supported by many of the major banks and by thousands of businesses. People can use it to pay for goods and services up to the £30 limit.

Although most people still pay by cards and cash, it is likely that mobile payments are going to become more popular. According to an nVest Ventures survey (reported in IT Portal), paying by cash is inconvenient for many people. One in five respondents said it was inconvenient, and this was even higher (26 per cent) in the 16-24 age group.

Types of Mobile Wallets

A mobile wallet is essentially a way that you can use your mobile phone to make payments. It comes in the form of an app, but there are different solutions available.

The most well known are the mobile wallets that have been created by intermediaries

Including Apple Pay and Google Wallet. These can store a number cards on them so that uses can choose which one they want to use to make the purchase.

Separate financial institutions have also created their own mobile wallets, and then there are other solutions that are created by retailers to function as mobile wallets in their own stores.

photo/ Michael Jarmoluk via pixabay

photo/ Michael Jarmoluk via pixabay

A Great Option for Businesses

The main benefit of mobile wallets for businesses is that they provide customers with more options in how they pay. People in shops who want to make a small purchase can whip out their mobile phones and pay quickly and without cash, and this provides them with a more convenient way to pay.

If you are a retailer, you could benefit from this because providing your customers with more options for how they pay is always a good idea and can encourage more sales.

If you are a start-up and you start researching UK merchant services to get set up accepting credit card payments, you may therefore want to consider mobile wallets as an option.

Security Concerns

The inevitable concern with mobile wallets is the security issue. As with any new technology, security is a concern. Although there have been no significant issues, potential problems are widely reported, and this could put consumers off adopting mobile wallets quicker.

For example, The Telegraph recently reported on a warning from banks about storing multiple fingerprints on iPhones to use with Apple Pay. If someone lets their partner store their fingerprint on their phone, and they are then the victim of fraud, the banks may decide that they have not kept their personal details secure. Such concerns are likely to put at least some people off using mobile wallets for the time being

Mobile Wallets Set to Grow

Despite the security concerns, the fact is that many consumers are embracing mobile wallets as a convenient payment solution, and this means mobile wallets are here to stay. If you want to start accepting mobile wallet payments at your business, compare the credit card machines available and find one that allows mobile payments to be made so that you can make it easier than ever for your customers to pay.

Guest Author :

Laura Potts is a go-to person when it comes to technology options and she also has plenty of retailing experience. She enjoys the chance to share her ideas and insights with an online audience and is a regular writer for several B2B websites.

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Displaying 2 Comments
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  1. Are Mobile Wallets Another Payment Option Or A Passing Fad? says:

    […] And here we have a slightly British take on what’s happening with the mobile wallet overall &#… […]

  2. Kim Stuart says:

    Overall, I tend to agree. In the same way that email, touch screens and almost always available internet connectivity have become mainstays of daily life, people will move to a mobile payment variant – perhaps a slightly different version of the mobile wallet than we see now, or perhaps this iteration will get traction and really start seeing broad adoption. After all, the iPhone had much more dismal adoption rates in year one than Apple Pay has seen…

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