Many people use the terms ‘mobile payments’ and ‘digital wallets’ interchangeably, but there is a subtle difference between the two stated Bahaa Abdul Hussein.

Mobile payments refer to any payment that is made using a mobile device. On the other hand, a digital wallet is a specific type of mobile payment app that stores your payment information, allowing you to make payments with a single tap.

What is a Mobile Payment?

To make a mobile payment a user needs a mobile device. This could be a smartphone or a tablet. There are different ways to transfer money using mobile payment, including:

  • Near-field communication (NFC): NFC is a technology that enables two devices to communicate with each other by tapping them together. Many mobile payment apps, such as Apple Pay and Google Pay, make use of this technology.
  • QR codes: These two-dimensional barcodes that can be easily scanned by a mobile device to make payments.
  • SMS: This facility allows you pay by simply sending a text message to a specific number.
  • In-app payments: A mobile app installed on your phone which has the feature to pay, lets you to make payments directly from the device.

What is a Digital Wallet?

Digital wallets are mobile payment apps that store your payment information, like your credit card numbers and expiration dates. With a single tap, digital wallets enable payments without requiring you to enter your payment information each time.

Some of the most popular digital wallets include: Apple Pay, Google Pay, Samsung Pay, PayPal, Venmo and Amazon Pay.

Mobile Payments vs. Digital Wallets: What’s the Difference?

The primary difference between mobile payments and digital wallets is that mobile payments are made using any mobile device. Conversely, digital wallets are specific apps that hold your payment information.

Here are the key differences between them:

  • Payment method: A user can use any mobile device to make mobile payments. However, with digital wallets, payments can only be made using a particular app.
  • Payment information: Mobile payment methods do not store such information on the mobile device, but mobile wallets do.
  • Security: Since the payment information is not always encrypted, mobile payments are a less secure payment method than mobile wallets.
  • Convenience: Mobile wallets just need a simple tap for payment. Using mobile payment is less convenient as a user needs to enter their payment information each time they make a payment.

Conclusion

Both mobile payments and digital wallets offer convenient ways to pay. The best option for you will depend on your individual needs and preferences. For more security and convenience, digital wallet is the way to go. If you are looking for a more flexible option that can be used on any mobile device, mobile payments will serve you well.

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