Technology companies like Google and Apple are developing ways to make managing finances easier through options such as digital wallets. This new way to pay has taken off in the US, with digital wallets released by Google, newcomer ISIS, Skrill from Moneybookers and even more payment options from online commerce sites like PayPal.
But regardless of the specific option that you use, digital wallets all work on similar foundations.
Basically you store your credit or debit card details online through a secure cloud-based service, then utilise near-field communication technology (NFC) on your smartphone to make payments.
In theory, all you would need in Australia to start using a digital wallet is the right app and MasterCard PayPass or Visa payWave processing machines in stores.
As well as being as quick and easy as using a contactless payment card, digital wallets mean you do not have to carry all your physical cards as well – so if you forget your actual wallet when you go to the shops but still have your phone, you can still buy everything you need.
A World Of Card Convenience
With more and more people using smartphones for everything from talking to emails and music, it makes sense to be able to pay for purchases via phone as well.
In the US, credit card issuers, processors (including MasterCard and Visa) and phone companies like AT&T, Sprint and Virgin have embraced digital wallets as the way of the future.
As the Google Wallet website puts it, you can “use the same wallet whether buying in store or online”, making it easier to keep track of spending and manage your accounts in one place.
But there could be even more benefits for tech savvy smartphone users, with most digital wallets also offering daily deals and promotions.
That means not only could you find it easier to pay for everything from your phone (or a centralised online account), but also more affordable.
While true digital wallets are yet to be embraced in Australia, the popularity overseas, and the now common sight of PayPass and payWave machines could soon change things here.