Mobile Wallets: How It Works?

In today’s social environment, as more and more people search for an easier, more convenient way to carry, give, and receive money without having to access it from the ATM or bank, etc. physically, it has given way to a new form of digital money transfer technology called Mobile Wallet.

What is a Mobile Wallet?

Mobile Wallet is a virtual version of a real wallet that enables users to store their cash, credit card numbers, debit card numbers, and even their loyalty card numbers and coupons on their mobile device.

This way, instead of carrying cash or your credit or debit cards on you, you simply use your mobile device to receive money and make payments and money transfers. Think Google Pay, Samsung Pay, and Apple Pay, which are some of the most common examples of Mobile Wallets.

How Does Mobile Wallet Work?

If you do not already have a mobile wallet installed on your mobile device, you will first need to download an e-wallet app.

Once you have installed the app, you can then load cash onto it from your bank account, as well as your debit and credit card numbers, etc.

From there, when shopping in person, you simply use your smartphone, smartwatch, or tablet to make transactions by swiping the device over the NFC reader until it registers your payment information. You can also use the mobile wallet to make online and text payments.

However, to use the mobile wallet to make payments, the establishment has to be set up to accept it.

How Many Types of Mobile Wallets are There?

Open wallets, closed wallets, and semi-closed wallets are the three main types of mobile wallets.

Open wallets – are bank-issued digital wallets that allow users to make payments both in-store and online and withdraw cash funds from automated teller machines, etc.

Closed wallets – on the other hand, are issued by merchants to enable users to make payments or withdraw cash funds specifically from them.

Semi-closed wallets – enable the funds in the wallet to be used to make payments for transactions with various merchants, provided the mobile wallet company and the merchant have an existing contract. However, users cannot withdraw cash funds.

So if you are one of the many people who are looking to join the digital wallet revolution to help make payments and money transfers easier, then you may consider transforming your mobile device into an e-wallet.

In the meantime, the cell pay company also helps make it easier to fund your mobile wallet using their Pay Simple Mobile Bill and Prepaid Plan Refill Payments, which, according to them, provides a “fast, easy and the most secure way to top-up your Simple Mobile Wireless Account” and with “instant…mobile real-time refills with no hidden fees, no taxes, and no log in using a debit or credit card.”