Back in the days our phones were only used for calling others ( friends , family , colleagues, boss ), but with the technology advances smartphones started getting created. Smartphones are much more superior than the old phones that we used to have because of the features that we get with them.We can call , we can take photos, we can even use our phones to PAY.
History
Digital wallets or so called E-Wallets were originally created back in the 1980's by the American cryptographer David Chaum.After time passed and technology kept evolving there were possibilities for experts to create digital wallets.One of the most popular digital wallets "Google Wallet" was created in 2011 and 3 years later "Apple Pay" was introduced.One of the most important moments in the history of mobile payments and digital wallets was the moment when Bitcoin got created.Many other cryptocurrencies were created afterwards and e-wallets together with them.
Types of Mobile Payments
- Direct Carrier Billing
- Closed Loop Payments
- Mobile as The Point of Sale
- Mobile Wallet
- Mobile Payment Platform
- Direct Carrier Billing
In game purchases.People buy something for their favorite games and the charge is set on the bill of the phone.Such payments are called Direct Carrier Billing.
- Closed Loop Payments
Method which is commonly used by companies, restaurants.They build applications which allow payments called Closed Loop Payments.
- Mobile as The Point of Sale
When merchants use their mobile phone in order to process payments.
- Mobile Wallet
This method is possible with the help of BLE and NFC ( Bluetooth Low Energy , Near Field Communication ) .
- Mobile Payment Platform
Companies such as PayPal, Payza and other are using this method.How it works is you have money on their platforms and you can use that money in order to shop online or send payments to friends.
Advantages
You might be asking yourself... What are the advantages of using a phone to pay ? What's the good in mobile payments and E-Wallets.
- Faster
- Promotions
- Cash Back Rewards
- Easier Accounting
- Fee Avoidance
- Real Time Data for Businesses
Popular Wallets and Payment Platforms
- Google Wallet
- Android Pay
- Apple Wallet
- Apple Pay
- Microsoft Wallet
- PayPal
- Skrill
- Payza
Security and Risks
All of this is fine, there are great advantages and we see no reason to not get involved but one important question is .. Is it safe/secure enough ?
Security of digital payments has always been really important.The technology advances that are happening are forcing the companies which offer payment services to keep looking and implementing the newest technology security trends in order for people's money to be safe and secure.Something which is very good with digital wallets is that you can have a PIN code, two factor authentication,etc and on top of that you can also have a PIN code on your phone for additional protection.
Potential risks:
- Having your phone lost
- Fraud when using digital wallets
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Thanks for reading.Your support means a lot !
If you wanna see other articles similar to this one , you should visit :
The Way Bitcoin Transactions Work
What TO do and NOT TO do when implementing Blockchain in your business
Cryptocurrency - Advantages, Risks and Problems
Cryptocurrency and Blockchain Uses
Ways to Protect Your Cryptocurrency
Sources:
Entrepreneur
Hotspotshield
Wikipedia
