Digital Wallets have gained their place

Mobile payments are rising on an accelerating trajectory, so cash money will soon lose their ‘Kingdom’. We are eased by the digital world that allows us to store everything in a small device, easy to carry around due to its portability. 

Mobile apps that offer contactless payment have become more common and transformed smartphones into digital wallets, thanks to the introduction of Near Field Communication (NFC).

You can easily store all your credit & debit cards, coupons or reward cards in the app, your digital wallet won’t get heavier or thicker like a normal wallet does. It’s easy to buy groceries online from the supermarket, clothes, shoes and accessories from your favorite fashion brands, or even purchase food from famous restaurants like KFC, Burger King or McDonalds. 

A simple payment process with a tap simplifies the lives of so many people who don’t have to search for their classical wallets in their pockets or purses. Every time they need to pay for something, people just enjoy the beauty of mobile payments!

It’s definitely safer to carry your digital wallet than physical cash and all your cards in a wallet everywhere you go. Let’s take a glance and find out more about the best app payment services available worldwide. 

1. Apple Pay

With a huge market penetration of more than 85% of all the US retailers, like Walmart, Starbucks, Walgreens, Best Buy and basically anywhere there is a contactless payment supported, Apple aims to simplify the difficult and so far it has made this possible and accessible to the vast majority of people, through their products and their mobile wallet services. 

The iPhones and Macs already have the app installed, so the new user doesn’t need to download it as it comes standard on their operating systems, ready to help with the online shopping. 

It works likes this: 

• The payment card details are added to the user’s Apple account. 
• Instead of a regular card or cash, the iPhone is used to buy products from a store with the contactless payment method
• It offers higher security for the transactions due to the authentication with Face ID or Touch ID - that are unique for each user

A very nice feature that users love is sending/receiving money to each other through iMessage with the help of Apple’s digital assistant, Siri. When received, the money goes directly into the Apple Pay Cash account, with the possibility to further be sent to the user’s bank account if needed. 

2. Google Pay

Android's popular mobile payment app is Google Pay and it also comes pre-installed on all Android smartphones and devices. It covers the markets of more than 42 countries worldwide and works with lots of retailers such as Nike, Airbnb, Bloomingdale’s, KFC, DoorDash, McDonalds and many more who facilitate this digital payment method.

Just like Apple Pay, Google Pay uses NFC (near field communication) to transmit card info that facilitates money transfers from users to retailers in a very safe and secure environment. Google assures the users claiming that its service is far more safe than using a normal credit card due to the lack of card number used directly at each transaction and thanks to a multi layer security encryption. 

Most of the credit cards available out there are accepted by Google Pay, from issuers such as American Express, Citi, Chase, Discover, Visa, Mastercard and many more. If you cash your salary on a card released by a local bank or credit union with only a few branches available and only in your area, there are small chances to be recognized by Google Pay. But even so, you can directly connect the PayPal account with the Visa cards who benefit from support via Visa Checkout. 

Recently, on May 11, 2022, Google announced at the I/O Keynote that Google Wallet - a comprehensive digital wallet that will replace the Google Pay app - will be able to store items like, concert tickets, transit passes, loyalty cards and even vaccination cards, in addition to the credit cards and it will only be available on smartphones.

3. Samsung Pay

Samsung also has its own mobile wallet service called Samsung Pay, that is available only to the owners of Samsung Galaxy smartphones. It has a compatibility restriction to other smartphone vendors and is compatible with most of Samsung’s recent releases, which definitely is the only catch here.

The Samsung Pay app benefits from universal acceptance and works with various leading credit and debit cards issuers as well as banks. 

What’s interesting here is that Samsung Pay works with both traditional credit card readers using the new and smarter EMV technology or NFC , and the older ones with magnetic stripe technology.

The magnetic secure transmission (MST) allows the credit card details stored on the magnetic stripe to be transmitted by simply holding the device close to the reader.

Samsung Pay’s agility in dealing with the credit card reader can offer genuine replacement of the stack of credit cards in your wallet with the mobile app.

4. PayPal

When it comes to digital transactions, nothing beats the longevity of PayPal who’s been around since forever, actually from 1998. Its rise as the official payment provider and digital wallet for eBay transactions has made it legendary and kept on evolving over the years into one of the strongest names in the online banking industry.

PayPal offers you the possibility to send money from and to any US bank account and extends this possibility for many international accounts as well. You can transfer money to friends or relatives from a PayPal or bank account and this operation is free of charge. Its fees apply only for converting currencies or sending money from a credit card.

What everybody loves about PayPal:

• User-friendly mobile app
• Simplicity in setting up a free PayPal account
• Money transfers remain free of charge
• Account security assured with a super-strong encryption technology

5. Zelle

A modern method to transfer money to your family and straight from your bank account is Zelle. You might have an account with one of Zelle’s partner banks, so this allows you to send money to anyone else with the account from the partner bank and the transfers happen on the same day.

Bank of America, Chase, Citi, Wells Fargo, US Bank, and Capital One or Ally are the main Zelle’s partner banks, and a variety of other banking brands joined their partnerships.

The coolest thing when using Zelle is that sending and receiving money is totally free and this service can be used without downloading the app. Only one bank account at a time can be linked to your Zelle profile, so when you register, make that one your primary.

Nowadays cash and card payments are being replaced by digital wallets like PayPal, Apple Pay, Venmo (acquired by Paypal), Google Pay and more, that turn contactless and fast payments into easy actions. 

When you used to forget your wallet at home, you were blocked from buying something when you needed it. Since we no longer forget our smartphones at home because we communicate and navigate through life by using them all the time, this change is a positive outcome especially when most restaurants and stores accept digital payments. Digital wallets and mobile payments represent the future as we experience it today.

The worldwide users of mobile payment transactions are expected to be at 1.31 billion by 2023.

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