Once digital wallets finally claim the hearts and pockets of shoppers, consumers will never again have to shuffle through an overloaded wallet only to find a bunch of maxed out or expired credit cards. They will never again have to worry about forgetting their bankcard at the bar or losing a paper buy-one-get-one-free coupon. Using a digital wallet, consumers can organize all of their accounts on their phone, and soon, they will be able to buy almost anything and everything with a quick swipe, tap, or push of their phone’s screen.
During the past few years, wallets have gotten smaller and smaller. They are no longer home to photographs as those jumped onto smartphones ages ago. An increasing number of smartphone users are already using their phones to save coupons, which can be scanned and redeemed in stores. As mobile wallets rise in popularity, consumers will be able to store all of their credit cards, transit cards, and even gift cards on a convenient smart phone app, reports ABC Local.
Phones, unlike conventional wallets, can be locked in ways that prevent thieves from accessing their information, explains Bloomberg BusinessWeek. Plus, if a digital wallet manager is ever compromised, it should only take a single phone call for the consumer to disable all of their connected accounts. Convenience may be the biggest reason why consumers will eventually embrace this trend, but once consumers are fully armed with digital wallets, they will also have the tools to organize their money better. With everything conveniently located in one spot, it will become easier for consumers to track their balances and their spending habits.
The First Cross-Platform Digital-Wallet Management App
In late June of 2013, Urban Airship released the first cross-platform digital-wallet management app. Able to hold data on all of a user’s accounts, from an AMEX business credit card to your Starbucks gift card, Wallet Studio offers consumers a secure way to keep accounts organized, explains Venturebeat. If an account is approaching its credit limit or if a transit ticket is due to expire, the app reminds consumers so that they can respond to the matter promptly.
This presents a huge change in the way that consumers will pay for products and services, but it will also change how consumers are marketed to. Urban Airship, the creator of Wallet Studio, wants to create new advertising opportunities for marketers. Consumers with digital wallets can expect to see more digital offers and coupons being sent directly to their pocket.
Secure Wallets Versus Cloud-Based Wallets
Mobile app developers lead the pack when it comes to the use and development of mobile wallets. But as the Huffington Post explains, financial institutions and mobile carriers are just behind them in these efforts. As these institutions are preparing for the digital wallet revolution, some of them are looking toward secure mobile wallets like Wallet Studio or Isis, while others are more interested in cloud-based solutions like those created by PayPal, Square or Google Wallet.
With a secure mobile wallet, consumers link their accounts directly to a mobile phone app. With a cloud-based service, on the other hand, consumers link their accounts to a cloud-based server, and their phone simply acts as an intermediary in the process. Ultimately, consumers will get to decide which path is right for their needs, and their choices may play a big role in the evolution of the digital wallet.