A digital wallet is an electronic packet that contains information such as credit card numbers and shipping addresses that can be used when purchasing goods and services. This digital information is kept at a central vault if you will, and in theory will make it much more difficult for hackers to steal digital information. This technology allows consumers to make online purchases without ever entering personal information.
Verizon, T-Mobile, and AT&T teamed up with Discover, Barclays, Visa, MasterCard and American Express to form Isis, a Near-Field Communications(NFC) technology that will allow consumers to make a purchase by swiping a smartphone during checkout. Isis will also enable consumers to use reward points and coupons at checkout and check balances. MasterCard, Sprint, and Citigroup joined forces with Googles NFC based Google Wallet platform. The two technologies reportedly will work together and MasterCard has signed agreements with both Google Wallet and Isis.
So how will the consumer benefit from digital wallet technology? Ironically the most significant benefit is security which most experts believe is the reason most consumers will remain skeptical about using the digital wallet as a means to make purchases online. Every time a consumer swipes their credit card at a point of sale location, their credit card information is at risk of being stolen by a hacker. With a digital wallet, your personal and credit card information is stored in a digital vault and is much less vulnerable to theft.
Another potential benefit for consumers who choose to use digital wallet technology is the ability to have digital coupons downloaded to your smartphone and use during checkout automatically. This could potentially save consumers time and money.
Would you feel secure using a digital wallet to make purchases? Why or why not?