Whenever you leave your house, you grab three things – your wallet, smartphone, and keys. Well, that is about to change! Your physical wallet is on borrowed time. Experts argue that everything in your physical wallet will be in your digital wallet on your mobile phone. Nowadays, your smartphone has become an essential gadget. For example, if you are an investor at the JSE, you can get the best trading app in South Africa like investors are using to make your trading more effective. Besides trading in the stock exchange, you can use your smartphone for many other essential activities. In this sense, some experts suggest that people will ditch physical wallets soon. To understand how this will come to be, you must understand what a digital wallet is. First, a digital wallet is not just a means for you to make digital payments. Instead, it is more of a concept of credentials and credentialing.
Table of Contents
What Does Your Physical Wallet Contain?
When you picture your physical wallet, it contains your credit card, state ID and other plastic cards. These plastic cards are the credentials that grant you access to something. For instance, a driving license allows you to drive your car legally, and a credit card will enable you to spend money. These represent different types of credentials.
In the future, verifying credentials such as college degrees, course credits, driver’s licenses, and proof of health will be done on the blockchain. Moreover, experts state that your credentials will be stored in digital wallets. The emerging digital wallets have built-in interoperability for credentialing, meaning you can store almost anything in your digital wallet.
Some experts also opine that governments will also start issuing wallets in the same wallet. Moreover, a time is coming when you will not need to carry your driver’s license around because it will be in your digital wallet.
Fortunately, you will be able to control your data, access and access points. There are already solutions for education credentialing, and experts are working on frameworks to manage several other credentials.
Is the Physical Wallet’s Demise Imminent?
Well, breaking consumer habits is not a walk in the park! And the use of wallets to cart money and other possessions is a habit that dates back as far as ancient Greece. This means that, although cashless transactions have become trendy, paper currency is still with us for some time.
Nonetheless, studies have revealed that about 68% of smartphone owners believe their gadgets will eventually eliminate the need for physical wallets entirely. However, some experts argue that people are so used to the physical wallet. They treat their physical wallets, cash cards and cash as some kind of a safety net.
Security Is Still a Concern
Security is one of the reasons people are not comfortable ditching their wallets. Most smartphone users claim that they want assurance of their phone security before they ditch their physical wallets. Experts argue that while smartphones are convenient, their safety is still wanting.
However, smartphone manufacturers are doing their best to make smartphones more secure. For example, technologies include biometrics such as facial recognition and the use of fingerprints to gain access to the phone. On the other hand, smartphone applications have adopted the two-factor authentication technology, which ensures no one can access your online accounts without your consent.
Facing the physical wallets will take some time. At the moment, users have to be convinced that their security concerns are addressed to trust digital wallets fully.