Evolution of Mobile Wallet Apps
The basic concept of a mobile wallet is one that many firms have been looking into easy online and secure payment services, banking, credit card payment and others, all are eagerly used as a piece of the pie. While there are various means available to accomplish the mobile wallet concept, through Near Field Communications (NFC) technology to bring ahead its version around, and is already working with different banks to make the service a reality. The exact extent of the Mobile Wallet project is as yet unknown and the last survey report on Mobile Wallet is saying that there is a chance of huge updating will be conducted through various top level innovative IT firms.
The NFC Technology offers many useful functions that can be used on a variety of topics. As previously discussed, many of them have ability to activate a GPS location tag through an NFC signal. Mobile users can activate Navigation, Bluetooth and pair headsets with mobile and other things to get more impressive. When the issue of machine to machine (M2M) connectivity created, the extra technical facilities will attract users.
Using mobile for an online payment purpose must be a surprise before few years ago. But many mobile application development and innovations have been going on in this anticipation. Consumers will have the most benefits as new technology and services must create value. Consumers are seeking unified services that are ubiquitous, work across many countries and result for standardization to ensure effectiveness across the Mobile industry.
The Challenges faced by Mobile Wallet Apps
The lack of proper compliance standards causes a number of varieties of mobile wallet technology’s existence. If a customer has a mobile wallet installed on his mobile device does not mean that the end institution has technology that facilitates that download. If the both technologies won’t match with each other, that means the consumer is unable to use his or her mobile wallet.
From hardware compatibility point, the variations in mobile wallets also need varying components. Some needs a point-of-sale device that consumers use the compatible mobile device in the vicinity of the hardware to buy the same. At this moment, retailers are interested to utilize near field communication (NFC), which provides facilities for contactless payment. Many utilize the QR codes that retail industry users or staffs scan to complete the transactions. Some payment systems consider the opposite approach and need customers to scan a QR code that the merchant produces. These types of different methods create confusion in the market.
Security
The consumers have traditionally used the mobile wallet to store personal information associated with one or more Debit or Credit cards. You will get a pin number for security purpose before any transaction can be completed and protects the payment card information. A latest innovation is the additional support for account-based payments that eliminate the requirement for a linked up payment card. This new idea was useful to revolutionize the commercial software models for mobile payments and may provide the missing benefit for Retailer adoption.
Use of Advanced Technologies for Mobile Wallet
There are mainly two types of advanced technologies introduced to market:
1. Loop
2. Coin
Loop
The Loop technology is transforming the traditional Magnetic Stripe Reader (MSR) device, which buyers use to accept the magnetic credit and debit cards, into the contactless digital reader by reading magnetic stripe card so the card data can be used wirelessly to the same data reader.
Coin
The technology of coin use is useful for replacing several payment cards procedure with a single sophisticated device like a card. The technology behind Coin works exactly the same security concern as the Loop device. Normally, when carders would like to use the data of stolen card for shopping, they have to manufacture the fake plastic card. The same card will be looking like a real credit card and encoded it with the stolen magnetic tracks. But in coin technology, the stolen data will be encoded directly into the coin device and there is no need to produce a fake physical plastic anymore.
The Way Ahead for complete dependence on Mobile Wallets
By 2018, mobile wallets will become the top preferred procedure of in-store and digital payments, as per the latest survey by Elon University, USA. Proponents of Smartphone technology are quick to highlight that this form of payment is one that simplifies transactions, loyalty programs, promotional and discount coupons and other incentives for famous financial organizations, retailers and consumers.
This will have very positive effects on the entire Mobile Wallet payments chain, including: a reduction in unsecure and untraceable payments and the related expenses and management risks and greater customer loyalty and satisfaction.