Mobile wallet technology has conquered new heights with a significant shift from physical currency notes to digital transactions. Mobile wallet services are growing at a lightning speed due to increasing smartphone penetration in the market. The COVID-19 pandemic has pushed people to use mobile wallets for contactless payments and avoid physical cash transactions.
The mobile wallet providers are influencing the payment processes and the way customers search for a particular product or service with lucrative cashback offers. A report by Global Market Insights suggests that since January 2020 contactless payments through mobile wallets have increased to more than 69% in the US alone.
Evolution of Mobile Payments in the Post-Pandemic Age
Statista Digital Market Outlook projected that the amount of smartphone mobile payments will continue to increase in the coming years, with a 28% increase between 2019 and 2024.
In nutshell, mobile wallet technology is on the verge of magnificent expansion, and it won’t stop any day soon. Here we will discover the dominance of the mobile wallet platform and how it is expected to evolve in the year 2021.
The Biometrics Security Affair
Smart mobile devices with iOS and Android systems offer fingerprint scanning, and voice assistant along with an AI-based face scanner to unlock the device or to login to an e-wallet. These Biometric security features help secure mobile wallet payments and ensures safety against fraud and theft.
The traditional PIN system is disappearing slowly, and banks, financial institutions, and insurance companies are using different types of biometric authentication for eKYC such as fingerprint scanner, eyes scanner, face recognition, and voice identification.
AI and Machine Learning Advantage
The Machine Learning (ML) features have already taken over the mobile wallet technology. The e-wallet service providers are keen to integrate AI and Machine Learning with mobile wallet applications.
Mobile wallet providers are using machine learning to enhance fraud protection and identify such fraudulent online transactions or payments. Banks are an ideal example where Machine Learning can be implemented as a tool to secure the transactions on mobile wallets.
With an increasing demand for mobile banking, banks are integrating chatbots (AI-based application) with their mobile banking applications that provide 24x7 support to the customers. Fraud detection is another important chatbot feature. Chatbot shares intelligent alert notification to inform the customers about any suspicious transaction. Customers can communicate with the chatbot on their smartphone to confirm if the transactions were legitimate or not.
Smart Voice Assistant for Online Payments
The smart voice payment technology was first used by Amazon and later by the digital giant Google. Subsequently, Apple too launched smart speakers in 2017. Since then, Alexa, Google Assistant, and Siri have become the face of voice assistants.
Mobile wallet users can check account balances, make transfers, and pay bills using their voice thanks to this technology. Personalization is the primary reason why voice technology can replace traditional typing. Voice is a trustworthy tool for the fintech organizations to gather useful data and information regarding consumer preferences.
International players are investing in the future of advanced and secured smart voice technology. Users always prefer services that save them time and are simple to use in today's fast-paced world.
Gradually, the use of smart voice assistants has increased while making online payments. As per Juniper research the number of voice digital assistants was close to 2.5 billion in 2018 and, this is expected to climb up to 8 billion by the year 2023. These statistics clearly portray that the use of smart voice wallet payments is rising with every passing day.
With the integration of cloud-based technology and mobile wallets, the latency in the payments can be minimal due to the network of remote servers. The mobile wallet solution providers will focus more on cloud integration to enhance the customer experience with faster payment processes.
Since all devices, modules, and network paths are duplicated and stored in a cloud environment, there is no SPOF (Single Point of Failure). To allow safe cloud-based mobile payments, digital issuing systems must be used, which can securely store all credentials in the cloud, send them to mobile apps, and provide safe access to those credentials to the apps that were installed on the device.
Cloud-based mobile payments transform smartphones into digital wallets that can be used at any time, on any device, anywhere, and take far little time in comparison with physical servers. All basic operations are automated and can be completed with only a few mouse clicks in a web-based control panel.
NFC (Near Field Communication) for Smooth Payment Process
Mobile wallet solution providers use NFC to make payments through contactless card transactions. NFC will see a considerable hike in the coming days as it allows encryption of customer data every time they use mobile wallets to make payments at a Point of Sale (PoS) or an NFC integrated payment device.
NFC also enhances the security of customer data, as it doesn’t allow to share the real card information and rather just share the virtual payment data to the payment device.
A Payment Card Industry (PCI) method is used by the merchant’s payment processor when the virtual data of the customer is passed to the payment device making NFC a fast, smooth, and secured payment method.
Crack the Best Shot for Your Mobile Wallet Technology Partner
The current financial system is witnessing massive fintech disruption with the rise of smart mobile payments and online transactions through mobile wallets.
MobiFin Elite Mobile Wallet solution by Panamax is a comprehensive platform that enables MNOs, MVNOs, mobile wallet operators, banks, aggregators, and financial institutions to develop solutions that are appropriate for the ever-changing financial marketplace. This platform focuses on security, scalability, and omni-channel functionality and it includes a streamlined e-KYC process for wallet activation and allows easy transactions with only a few clicks. It can be deployed on-premises, in the cloud, or in a hybrid configuration, and reduces infrastructure costs enable our clients to provide better customer experiences.