Since the onset of Covid-19 pandemic, mobile wallets or e-wallets have gained popularity, allowing users to transfer money digitally. Businesses and individuals, both are switching from cash to mobile money for contactless payments. Though Covid-19 is the most hated word these days, it has altered the mobile payment landscape and so is the need of having secured digital wallet solutions.

According to ‘Global Mobile Payment Methods 2020 and COVID-19's Impact’ report, mobile payment users are on the rise, and the pandemic projections estimate the number to be more than 1 billion in 2020.

How Secured are Mobile Wallets?
With the elevated usage of mobile wallets, you’re more prone to risk of your data being intercepted, and that’s where security plays a major role in digital wallet solutions. You may speculate, is your mobile wallet safe? Is it fraud-proof and secured enough to make all transactions digitally? The fact is digital wallets or mobile money services provide better security over your credit card or online payment methods. And how is that? The reason is when you make a payment through your e-wallet platform, the merchant doesn’t receive your bank or card details but a unique one-time code that’s required to process the payment. So, a fraudster wouldn’t find a way to steal your financial details. The justification of the security lies with tokenization that keeps your data heavily encrypted. So much so, if fraudsters try to hack, your credit card number and other details are not compromised.

Here are the key factors why digital wallets make for the most secured payment option -

Near Field Communication (NFC)
During a contactless payment with a mobile wallet, your phone carefully encrypts your account information, which is read by a PoS device through Near Field Communication (NFC). The NFC technology enables devices to establish a radio communication with each other within a specific distance. The PoS system does not capture the data, but sends it to the mobile wallet provider, who in turn de-encrypts the data, analyzes the account you are trying to access, and verifies your data.