Introduction:
What is a wallet? Is it a leather accessory that fits into your pocket? Is it a foldable holder for your cash and credit cards? Most people would say yes; however, the wallet is changing entirely. As technology evolves around us, the things that seem to be an obvious necessity are also evolving into things that once did not seem possible. Recently companies such as Google, Apple, PayPal, and Softcard are working towards the common goal of creating truly electronic transactions (The simple dollar: The 21st century wallet: Will mobile payments go mainstream?, 2015; Sposito, 2013). In order to reach this goal, the digital wallet must be perfected into a form of mobile payment that is accessible to producers and consumer alike (Wallets …show more content…
Digital wallets are no different. There are advantages for both the customers and businesses that participate in this new form of finances. For the customer, digital wallets are supposed to be a simpler way of carrying things such as cash and credit cards. Having all your different account information stored and accessed on one device eliminates the hassle of keeping up with different physical cards and their corresponding accounts (Wallets going digital, 2013). Another benefit for the customer is cashback benefits, because some companies are willing to offer incentives for using their wallet (Singal, 2016). For businesses, digital wallets can be used to increase their customer base. Because transactions can be conducted anytime, anywhere, with anyone, businesses would be able to open up their products and/or services to a wider array of consumers. In addition to increased availability to make purchases, these wallets can also allow stores to find more customers based on the customer’s financial profile. After analyzing past purchases and financial tendencies, stores will be able to offer incentives and promotional deals to their customers through the digital wallet. Another advantage for businesses is they are guaranteed a quick payment because the payment is made immediately once approved by the digital wallet user (Wallets going digital, …show more content…
Consumer-use of these wallets has already sparked competition between banks, credit-card networks, and other companies, such as PayPal and Google, that are trying to create their own digital wallets. While many businesses are profiting from this new tool, some are not yet. Although not yet complete, many digital wallets have plans to be able to tell its user which card, such as a credit card or department store card, is best to use in order to receive maximum benefits. This will cause banks and even some credit-card companies to lose business because users will be encouraged to use other methods of payment that they may not have considered, or used as often, before (A wealth of wallets; mobile payments, 2012). Another problem for society will be the additional hardware that will have to be obtained for optimal use. Stores will have to make sure their systems are up-to-date for the software needed to complete transactions and consumers will have to make sure that they have a phone that is capable of using such software as well (Sposito,
What is a wallet? Is it a leather accessory that fits into your pocket? Is it a foldable holder for your cash and credit cards? Most people would say yes; however, the wallet is changing entirely. As technology evolves around us, the things that seem to be an obvious necessity are also evolving into things that once did not seem possible. Recently companies such as Google, Apple, PayPal, and Softcard are working towards the common goal of creating truly electronic transactions (The simple dollar: The 21st century wallet: Will mobile payments go mainstream?, 2015; Sposito, 2013). In order to reach this goal, the digital wallet must be perfected into a form of mobile payment that is accessible to producers and consumer alike (Wallets …show more content…
Digital wallets are no different. There are advantages for both the customers and businesses that participate in this new form of finances. For the customer, digital wallets are supposed to be a simpler way of carrying things such as cash and credit cards. Having all your different account information stored and accessed on one device eliminates the hassle of keeping up with different physical cards and their corresponding accounts (Wallets going digital, 2013). Another benefit for the customer is cashback benefits, because some companies are willing to offer incentives for using their wallet (Singal, 2016). For businesses, digital wallets can be used to increase their customer base. Because transactions can be conducted anytime, anywhere, with anyone, businesses would be able to open up their products and/or services to a wider array of consumers. In addition to increased availability to make purchases, these wallets can also allow stores to find more customers based on the customer’s financial profile. After analyzing past purchases and financial tendencies, stores will be able to offer incentives and promotional deals to their customers through the digital wallet. Another advantage for businesses is they are guaranteed a quick payment because the payment is made immediately once approved by the digital wallet user (Wallets going digital, …show more content…
Consumer-use of these wallets has already sparked competition between banks, credit-card networks, and other companies, such as PayPal and Google, that are trying to create their own digital wallets. While many businesses are profiting from this new tool, some are not yet. Although not yet complete, many digital wallets have plans to be able to tell its user which card, such as a credit card or department store card, is best to use in order to receive maximum benefits. This will cause banks and even some credit-card companies to lose business because users will be encouraged to use other methods of payment that they may not have considered, or used as often, before (A wealth of wallets; mobile payments, 2012). Another problem for society will be the additional hardware that will have to be obtained for optimal use. Stores will have to make sure their systems are up-to-date for the software needed to complete transactions and consumers will have to make sure that they have a phone that is capable of using such software as well (Sposito,