The “Digital Wallet Revolution” seems to be hitting its stride with the recent release of the Apple Watch and the announcement of Apple Pay, the company’s version of a digital wallet.
Well, what is a digital wallet you ask? It is any sort of software or application that facilitates or allows commercial transactions. So anytime you’d like to pay for something, you don’t necessarily have to pull out a bunch of crisp green bills.
The promotion of digital wallets is a great push toward using technology in everyday transactions. The idea of a digital wallet is not a new concept or the sole result of brand new technology. Whether through on-screen barcodes or Near Field Communication technology, digital payments have been fairly common for at least the past several years.
Debit and credit card holders should consider adding a digital wallet to their mobile devices because of the convenience and efficiency of having all of your loyalty cards and other payment methods in one place. Market leaders like Google Wallet, Paypal and Softcard provide the benefit of higher security because none of your actual card information is ever shared with merchants. However, none of these digital wallets are exactly the same; therefore users should consider all of their options.
Of course, Apple, being the glitz and the glam of technology companies, announced their new version Apple Pay, which is sure to cause great excitement due to the millions of people around the world with iPhones and other Apple products. However, users shouldn’t get too excited or just jump at the opportunity when the software is released sometime in 2015 because Apple Pay isn’t as great as it seems.
Apple Pay is said to be the most secure version of a digital wallet because of the iPhone’s Touch ID fingerprint technology, as well as the secure NFC chip and creation of one-time security codes. However, these security measures can already be found in other digital wallet software. There is another problem devout Apple patrons will have to deal with: Apple Pay will only be available on the newest iPhones as well as Apple Watch.
This shouldn’t deter Apple users because most of the other common digital wallet apps are available on both Androids and iPhones and the options of Google Wallet and Paypal are enough to explore the world of digital wallets. Plus, wary users don’t have to link all of their credit cards so it could prove to be a huge value add in the event of an emergency because an increasing number of people always have their smart phones on hand.
Although digital wallets may never completely replace traditional commercial payment methods such as a bank card or hard cash, this doesn’t mean that it shouldn’t be added to a person’s financial profile. Often these apps and the transactions made using them are free. So why wouldn’t you add one? At least the detailed transaction records that all the companies provide will be able to serve as proof in case you aren’t sure of any particular transaction, a clear benefit over cash transactions.
Reach the columnist at kayla.chan@asu.edu or follow her on Twitter @kaylarc214.
Editor’s note: The opinions presented in this column are the author’s and do not imply any endorsement from The State Press or its editors.
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