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Understanding E-wallets for Seamless Transactions
With China being the pinnacle of E-wallets and Jeff Bezos releasing Amazon-go (which is a ‘walk out’ shop), the rest of the world is slowly but surely following their footsteps toward a ‘wallet-less ‘society. Europe is a predominant location adapting to this change.
The primary forms of digital wallets (or E-wallet) you have most likely heard of are Apple Pay, Google Wallet, Samsung Pay, and PayPal. This form of payment allows the consumer to input their card details into their phone and uses NFC technology (Near Field Communication) to transfer the money at the point of sale with their mobile phone with a ‘tap’.
E-Wallets are a hot a topic
According to Cash Matters, Cash is fading out for the most part, with only 27.7% of consumers in Europe using it at the point of sale. Cash fading out is mainly due to the inconvenience of its use. For example, having to take it out of the bank, the increased risk of losing it or getting it stolen and not being able to retrieve it.
Digital transactions are the next most significant advancement in payments, as contactless rates soar to a staggering 73% of all card payments, according to Visa. Data also shows that consumers prefer to use digital payments at the point of sale, with the use of E-wallets predicted to be used by 13.9% of people in Europe by 2024, according to Bdaily news.
Use of NFC technology
Contactless payments will convert into an encrypted message in a card terminal, which an NFC technology terminal can only decode. Following a ‘tap’, NFC technology can lock in the charge, and the card terminal can decrypt the message. At Bespoke Merchant Solutions, we have this feature available on our card machines.
Consumers shop with ease
- A contactless E-wallet utilises all the current NFC technology: Merchants and consumers trust E-wallets because they offer better security to traditional payments. More protection is granted because each transaction is protected by the app, retail outlet, card company and card machine company, and the bank that issued the card.
- Shoppers benefit from E-wallets by creating a frictionless, more accessible experience.
- Digital technology is aiding us towards an advanced but easy and accommodating future for retail consumers and businesses.
- Most smartphones have an E-wallet as part of the operating system – but third parties can provide E-wallets.
Is my data safe?
NFC technology ensures the safety of its customers by implementing multiple security measures. Further security measures will likely introduce themselves as this technology becomes more widely used.
There is a lot of concern with fraud around NFC technology, ‘swiping’ being one of them. ‘Swiping’ would propose that a person with a card terminal can collect funds from the banks of the public through contactless.
- With contactless transactions now increased to £100, fraudsters cannot empty public accounts as bank liability policies protect them.
- The transmitter needs to be close to the receiver to activate NFC technology about a few centimeters away.
- The NFC technology protocol entails a one-time code security measure that accompanies each unique transaction; the information behind this measure is not sensitive and is extremely limited.
What can BMS do?
With NFC technology, upcoming generations of customers can become increasingly ‘wallet-less’ simply because it is fast, secure, and accessible. Due to the speed of transactions, all our current machines can accept mainstream Tap & Pay payment methods. Tap & Pay can increase the number of customers a business can serve. This greater experience will not impact our transaction-rate pricing; we will disclose all fees relating to payment with complete transparency. Get in touch today!
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