Dubai: The way mobile wallets work is simple. In general, the term mobile wallet refers to the technology being developed by banks and other companies to allow customers to pay for items with their phones.
The intention is to make shopping more convenient for consumers, whilst providing the banks with more data on people’s spending habits, and reducing the risk of fraud.
To start using a mobile wallet, you simply need to download the app and connect it to your bank card. From there you can start using your phone to spend money in shops, by simply swiping the phone where you would usually place your card.
According to Moussa Beidas, founder of Bridg, a UAE-based mobile payments start-up, mobile wallets simply access your bank account when requested, in a highly secure way.
“Most mobile wallets link to normal bank accounts. The work by encrypting your bank information which is stored at a secure vault. When a transaction is made, an order is sent out to charge you in the vault without compromising your information,” Beidas said, adding: “This all happens in milliseconds, and is more secure than using your actual plastic card.”
Essentially, a mobile wallet can do everything that a trip to your bank can do for you, without the hassle of having to step foot outside your front door. Mobile wallets also act as bank cards, meaning you can pay for things in shops or restaurants using only your phone.
And with all operations needing to be authorised by a transaction PIN set by the user, mobile wallets are just as safe as a bank card, which you would need to enter a PIN for. So even if your phone is stolen, and you don’t have a passcode to lock your phone, thieves would still not be able to use your wallet, as it is PIN protected.