By The CardLinx Association
Requiring no physical contact with merchant point-of-sale terminals, mobile wallets are increasingly viewed as a safer way to pay by consumers around the world. Fears that payment cards, cash and coins may be tainted with the coronavirus, and that touching in-store terminals might make shoppers sick, the use of mobile wallets is getting a boost.
According to a Forbes article, central banks in the US, China and South Korea earlier this year took the drastic step of cleaning/quarantining cash bank notes to disinfect them.
In the US, consumers have become wary of having to sign for credit-card transactions and touching point-of-sale devices used by prior shoppers. That’s driving a shift toward in-store use of digital wallets and contactless payments.
Behavior is changing in other important ways. Many are doing more shopping online due to fear of exposure, and stay-at-home orders. Mobile wallets are getting uptick from this trend too: As e-commerce increases share, mobile device payment apps are gaining traction online.
The good news for payment card issuers: Credit and debit cards are primary funding sources for mobile wallets. An increase in mobile wallet usage is not necessarily a negative for banks and payment networks.
Here’s a summary of the top 10 mobile wallets.