With so many apps out there, have you ever wondered when they’ll invent one that lets you pay for groceries from your smartphone? Well, thanks to several companies, a digital wallet is on its way! Here’s a look at how two options work:
- payWave (Visa) – This app allows Visa cardholders to use their smartphone to pay for items with their Visa card. According to Visa, cardholders will eventually be able to use their phone for a variety of services “including e-commerce, mobile commerce, micropayments, social networks and person-to-person payments. The wallet consolidates multiple Visa and non-Visa payments accounts and can be used in mobile, e-commerce, social network and retail point-of-sale environments.” How it works.
- Google Wallet (MasterCard) – Google reports that this Android app “turns a user’s phone into a payment device. Using NFC (near field communication) technology, users can pay by tapping their phone on MasterCard paypass terminals. As well as being able to make payments, users can also receive offers and store loyalty points via the app.” How it works.
What businesses need to know
payWave – According to Visa, its e-commerce technology will allow companies to “send alerts to your best customers in near real-time. Expand your loyalty offerings and exclusive deals and increase customer lifetime value. [Visa] connects payment and transaction services across online, mobile and retail channels and offers powerful business analytics, so you can focus on your business instead of payments and reporting.”
Google Wallet – Google’s website says its app allows businesses to:
- “Drive the right traffic to your store. Push offers to shoppers who are actively searching for your products in your area. Customers can save your offers with Google Wallet, then redeem them in-store – enabling you to analyze online marketing against in-store purchases.
- “Better serve your customers. Paying with Google Wallet is faster and more convenient. Instead of fumbling for cards, cash and coupons, your customers can simply pay with the tap of their phones.
- “Retain more customers. By storing loyalty cards on their phones, Google Wallet provides your customers with a convenient way to carry them.”
What about security?
Both payWave and Google Wallet have incorporated multiple layers of security into their apps. Features range from security codes and fraud monitoring to secure encryption technology and limited liability for unauthorized purchases.
Still, privacy advocates worry that hackers will be able to easily figure out a smartphone user’s PIN number – after all, most people aren’t very inventive when they create their security codes. On the other hand, credit cards and online payment systems have been vulnerable to hackers’ attacks for years – and most of us have survived such shenanigans.
Are you down for a digital wallet?
So now tell us if you will be using an e-commerce app anytime soon. Why or why not?

















