new digital wallet software Apple can revolutionize the way people pay for things.
Although the concept of digital wallet and various applications have been used for years, few people have really embraced technology. This may be due to the limited number of merchants that accept wallet applications, or technological barriers that prevent seamless integration between applications and networks, or a level of confidence in the safety and security of digital low wallets .
Apple entering the digital wallet market can change all that by capitalizing on its excellent reputation for simplicity and its huge and loyal following. As more people and businesses adopt digital wallet technology, how will the safety and security of the affected?
What is a digital wallet?
To understand the security problems with digital portfolios, it is important to understand exactly how digital wallets are working. Currently, most applications link bank account, debit card, and credit card information to a smartphone application to enable consumers to simply wave or tap their phones to complete a transaction. PayPal is the giant in the market currently, but other companies are trying to chip away from PayPal market. The Google Wallet, MasterCard PayPass Wallet and Square are aggressively marketing their applications.
What is the evolution in technology?
The digital wallet Apple has the shopping experience to the next level by allowing users to combine not only cash and credit accounts, as well as loyalty points and other forms of non-cash currency to let consumers choose different combinations to pay for their purchases. The idea is to let customers buy the things they want the way they want. It is easy to see how digital wallets will become more attractive as the technology evolves. Once these operations become transparent and secure, developers expect using the digital wallet to explode.
What is the extent of use Digital Wallet?
The current state of the digital wallet technology is a bit hit-and-miss, leading probably to its perception as less secure than debit cards and traditional credit. Starbucks, for example, signed a high profile agreement with the hand to accept digital payments via apps on iPhone and Android, and Home Depot partnered with PayPal to offer mobile payments, but most large chains have yet to accept digital wallet payments.
The main obstacle to a more traditional use of digital portfolios is that there is not an application accepted everywhere. Of course, smartphone users can easily upload several different applications of digital wallet to get one that works with all merchants that accept but is confused and awkward and defeats the purpose of a virtual portfolio.
Mobile Access Concerns
Another obstacle to the adoption of universal digital wallet is that mobile coverage high quality is far from exhaustive. Even Verizon 4G network only provides coverage to about 75 percent of the country. Customers shopping in areas with poor service will be out of luck at the time of purchase if they are based on a digital wallet.
Not many people understand or Use Digital Wallets
analytics firm ComScore surveyed more than one million consumers about their knowledge of digital portfolios. While the majority had heard of PayPal, barely half had heard of all other applications as Level Up, Square, V.Me or Google Wallet. A surprisingly low 12 percent had used one of the applications at all. Among those who have used technology, PayPal is the clear favorite, while second place Google Wallet was used by only 8 percent of the subjects of the investigation.
The study found that the primary concern preventing more digital portfolio utilization was the fear of being hacked. A massive 93 percent said that digital portfolios would be safer if they were to be unlocked with a password, even if this feature is available on all digital wallet applications currently on the market. The study revealed a high level of uncertainty on how applications worked and how safe they were.
What are the risks associated with a digital wallet?
The transmission of data through mobile networks is the least secure method, and transactions using a digital portfolio will be subject to risks inherent in any mobile transaction. There is also the risk of having your phone lost or stolen, compromising your personal and financial information.
Perhaps one of the biggest risks with a digital portfolio is the personal liability in case of fraud. Most consumers who use debit or credit cards to pay for purchases have a level of protection of their bank or credit card company. Most do not hold cardholders responsible for fraudulent purchases on their credit cards. This insurance fraud does not currently exist for consumers who use digital portfolios
Bottom Line :. digital wallets may be safer than plastic
There is a physical level of protection inherent in digital portfolios lacking in credit and debit cards. Indeed, digital wallets are locked with a PIN and smart phones can be locked with a PIN as well, provide a level of security that is lacking when someone steals the credit card of a person or identities line. In addition, all credit card and bank details of a consumer are strongly encrypted with digital wallet applications.
fraud costs the credit card banks and credit companies of more than $ 8 billion annually. If fraud decreases as consumers adopt digital portfolios, banks can get behind the technology and promote it as a safe alternative, which would lead to a wider acceptance of the technology.
There are over 135 billion credit and debit card transactions worldwide each year. digital wallet applications hope take a bite of this market and capture a significant share of these transactions. Now that Apple has joined the competition to replace the physical forms of payment, you expect a sea change in the use of electronic wallet. More and more consumers understand and require convenience, more merchants will improve their technology to accept digital payments, which can ultimately - and ironically -. Provide more security and consumer protection
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