Keep mobile wallet close, a backup closer
In addition to uploading info, files to hard drive or cloud, keep cash and card on hand
Whether paying for a cup of coffee or airfare, doing it with a smartphone is catching on just about anywhere you go.
Security concerns and loyalty/reward program availability hold some people back, but using credit, debit or prepaid card apps in a mobile wallet is a safe way to pay and manage cards and accounts.
Global technology intelligence firm International Data Corp. (IDC) predicts worldwide consumer mobile payments will annually account for nearly $4 trillion in transactions by 2020.
A 2016 Nielsen survey of 2,009 Canadian smartphone owners found 29 per cent have used their devices to pay, with a little more than half doing so on a daily basis.
It’s the primary payment method for 13 per cent of those polled, secondary for 44 per cent, and about 75 per cent said it would be their main pay way if all reward programs honoured mobile transactions and if it was more widely accepted by vendors.
About 34 per cent of digital payment giant PayPal’s transactions now come through mobile devices, and that’s propelled the company’s stock to a record high of more than $60 a share in July.
“We’ve adopted a mobile-first focus, even in Canada, since 2006 when we processed the first mobile payment,” says Paul Parisi, president of PayPal Canada.
“Since then, mobile continued to grow at pretty astonishing rates. PayPal processed $106 billion of total payments in Q2 (April, May and June) alone, and our mobile-payment volume increased by 50 per cent over the same period last year, to approximately $36 billion.
“These are massive numbers — and it’s not stopping.
“We know the direction people are taking and it’s our responsibility to make it easier and safer,” Parisi added.
Mobile payments are only limited to the maximums on credit, debit, prepaid cards or bank accounts and, as smartphone apps, they free up wallet or purse space.
“There was a time people thought when using PayPal, you had a limited number of resources to fund it, but you don’t,” Parisi explains.
“Now you can use the balance you have on it, use your bank account, load credit cards, and all of that information goes directly into the cloud. The information is passed securely; it’s not even stored in your phone anymore. The funding source, the credit card information and bank account information is all completely protected and never passed to the vendors.
“It’s a securely managed paymentprocessing method,” Parisi says, adding: “Now, if you do lose your phone, you better wipe it fast. Not because of PayPal, but because of everything else that’s on there.”
Stored information and important photos should be backed up, whether to a hard drive, flash or cloud in case the device is lost, stolen or broken. And it’s a good idea to have a bit of cash and maybe a spare credit card to get you back to where you’re staying.
The Government of Canada’s financial consumer agency provides details and advice about mobile wal- lets: how they work, what to do if a smartphone is lost or stolen and your rights as a mobile paying consumer.
While more and more people are making mobile payments, not all businesses are moving at the same speed, but Parisi believes retailers are aware of the value of being part of the mobile-payment system.
“Merchants who have moved online are keeping up with demand via mobile optimized websites, even with loyalty reward programs. If you fund a purchase with a credit card you’ve loaded into PayPal, all your loyalty points and protections associated with that card stay with you through your transaction.
Mobile wallet benefits include: Security: No currency to lose or have stolen, avoid credit-card fraud, keep transaction information private. Mobile devices have safety features, such as password protection, encryption and biometric authentication. Currency: You can pay in local currency, get current exchange rates and reduce conversion fees. Payment flexibility: Digitally change payment options from one card (app) to another, if one card gets locked out or a limit is reached, and manage spending over various cards. Convenience: All finance options are in one place, you can manage various loyalty points, shop online, tap and pay NFC (near field communication) ability. hstancu@thestar.ca