How Digital Wallets Modernize Payments
Digital wallets are fast-becoming the ideal choice for moving money around the world. They can be used at checkout stands, and more businesses are beginning to adopt the technology necessary to process transactions with mobile devices. Digital wallets promise a more secure method to move money online and in person, and they are built from the ground up to allow for secure, anonymous transitions of information.
Avoiding Storage Issues
There are many regulations that prevent banks from storing sensitive information about you, so the setup for these systems often requires a great deal of planned anonymity. Visa, for instance, does store personal information on their secure terminals but they are careful to encrypt and send only limited amounts of it. You can imagine only certain elements of information are necessary to identify you as the owner of a bank account. These systems are programmed to send only the necessary information needed to transfer money, including the amount spent or received.
That removes local storage from the equation, so you don’t suffer the liability that comes with processing the transaction.
When a merchant uses such a system, they typically tap into the purchasor’s wallet account, which transfers the necessary money through a secure payment gateway.
Chip cards offer a great deal of improved security features over the magnetic strip, but digital wallets remove the need to store card numbers. Money is moved digitally, transmitted from a mobile device. No card is swiped and only the necessary information exchanged.
It’s not the standard yet, but digital wallets will revolutionize the world of payments.