The rise of mobile pay and what it might mean for your personal finances.
The growth of mobile payments has far outpaced that of credit cards, making a cashless society much more likely in the near future. Here’s what to expect as this phenomenon starts to snowball.
Faster Checkouts. It doesn’t matter where you shop, mobile apps make checking out quick and user-friendly at any store that accepts this form of payment. You don’t have to worry about digging in your wallet for change or using your credit card’s chip that seems to blink forever while processing your payment. Instead, you can pay with a simple tap of your phone.
Better Security. Tokenization is used by most mobile apps to create a random, one-time use code for each separate payment you make. Unlike a credit card number, there’s virtually no personal information to be stolen and saved for future use by fraudsters. While debit and credit cards are frequently skimmed, it’s a much rarer occurrence for mobile payment apps.
Loyalty Perks. As mobile payments move more towards the norm, you’re likely to see a rise in rewards programs, just as you may have now with credit cards. You can already earn store rewards with certain retailers when you use Apple Pay and Android Pay. Samsung even has its own rewards program that allows you to earn and redeem points. Expect these programs to become more robust as mobile payments become more commonplace.
Less Baggage. Imagine getting a text from your friend one Saturday morning inviting you to meet up for coffee. Now think about how easy it would be to simply grab your phone and walk out the door. That’s what mobile payments allow you to do—eliminate all the extraneous cards, paper, and coins that litter your wallet or purse. It’s the ultimate way to streamline your life on the go.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).