Over the years, the way we manage financial transactions has vastly changed with technological advances. From carrying around a wallet full of cash to plastic cards, we have now moved to an era of mobile wallets. Mobile wallets let you digitally pay for your everyday purchases! So, are they safe? How does this alternative impact your credit card payoff efforts?
Are Mobile Wallets Safe?
The big question associated with using mobile wallets is whether or not it is safe. A variety of your personal information is stored on your mobile device. These even store information such as your credit, debit card information, coupons, rewards, plane tickets, boarding passes etc.
Mobile wallets are safe due to one major reason. With physical cards, the magnetic strip is a vulnerable security threat. This is because these strips can be read by any magnetic scanner. Also, when you swipe your normal cards, the data that is transmitted contains your card information. This means that if a hacker or someone intercepts this, they can manage to see these numbers.
Mobile wallets are designed in a way that every single transaction is carefully encrypted. This information in the case of ID theft is useless due to its nature. The other fact is that your mobile phones are protected by your own PIN. It can be anything from your fingerprint, your face or a number you key in on your phone.
While mobile wallets are up and coming as a safer, convenient option you should not ditch your physical cards just yet. Your phone might merely run out of power or the store you are in might not be technologically capable yet to handle this technology. Also, if you are fighting for debt relief opt out of the more convenient options and opt-in for options such as a cash-only budget to manage your finances more efficiently.
For more financial education resources or to speak to one of ACCC’s certified credit counselors, call 800-769-3571.