2023-10-09 13:32:21

Can You Replace Your Physical Credit Cards With Your Smartphone?

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Nasdaq
By The Motley Fool

Image source: Getty Images

We've come a long way since the 1990s when cell phones first became a popular accessory. With every technological advance, our smartphones become less of a luxury and more a central part of our lives.

More recently, digital wallets and P2P payment apps have gained popularity, partially due to the pandemic and the increased need for contactless payments. A 2021 study by Visa showed that 74% of small business owners surveyed expected consumers to continue to prefer contactless payments after the wide release of a COVID-19 vaccine. A recent Chase survey echoed similar sentiments, with 73% of respondents agreeing that contactless payments are more convenient than other payment methods.

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But can your phone replace carrying those plastic (or metal) credit cards in your wallet or purse? Possibly.

Smartphone payment technology

It seems like every week or month, there is a new way to access or spend money using your smartphone. Here's a look at some of the technologies that have become more popular options for contactless transactions among consumers over the past couple of years.

Digital wallets

A digital wallet, or mobile wallet, lets you add payment card information to your mobile devices for payment in stores and online without requiring your physical credit or debit card. It essentially turns a smartphone into a wallet, so individuals no longer have to carry cards on their person.

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