Once considered an up-and-coming technology, mobile payments via digital wallets (Apple Pay, Google Pay, Samsung Pay, etc.) are more commonplace than ever before. While the US lags behind countries like China and Norway in mobile wallet usage, growth in the US is expected to continue rising at a healthy pace. This is due in part to consumers becoming increasingly aware of and comfortable with the technology, as well as more merchants having terminals that accept mobile payments from devices at the point of sale.

What are some of the perks of mobile payments? Here are four benefits for businesses and consumers.

1. Mobile payments are convenient.

Smartphones are owned by a huge percentage of American households and are seemingly always within reach. Mobile payments are a natural extension of all the daily tasks that users demand of their smartphones, from checking the weather to updating their social media accounts. Putting payments in the palm of consumers’ hands makes the process easier and more convenient than ever before.  

2. Mobile payments offer extra layers of security.

Mobile payments reduce or eliminate the need for consumers to carry payment methods like cash and credit cards, meaning that these payment methods are less likely to be lost or stolen. Digital wallets also provide extra layers of biometric authentication such as fingerprint scans and/or facial recognition so businesses can ensure that those payments aren’t fraudulent. Finally, mobile payments are often tokenized during transactions. This means that sensitive accountholder information is replaced by tokens that fraudsters cannot use if intercepted during payment sessions, increasing security for both businesses and consumers.

3. Mobile payments enable fully digitized financial transactions.

Consumer payments are a critical part of the household budgeting process. Digital wallets can integrate easily into software and mobile apps that help people keep track of what they’re spending, where, and how often. In addition, electronic receipts can be issued to help consumers keep better track of their spending, reduce paper waste, and decrease costs for businesses.

4. Mobile payments are fast.

Searching for cash or waiting for a chip card transaction to run its course aren’t a problem with mobile payments. A customer simply presents their mobile device, authenticates the transaction, and is on their way. This creates a quicker, more user-friendly experience for consumers and helps businesses expedite transactions.