I
have a wallet problem. Between my credit cards, debit cards, loyalty
cards, and driver’s license, the slab of old cowhide I stuff into my
back pocket every morning is just too thick. I’m honestly one piece of
paper away from my wallet exploding like George Costanza’s.
That’s
where mobile wallet apps come in. Designed to hold virtual versions of
your credit, debit, and loyalty cards, mobile wallet apps will eliminate
the need for us to carry around traditional wallets. At least, that’s
what companies like Apple, Google, and now Samsung are promising.
Today, Samsung officially unveiled its competitor to Apple Pay
and Android Pay. But before you decide to trade in that mouldering hunk
of leather and go virtual, there are a few things you need to know.
The
first thing you’re probably asking yourself is, “How secure are these
mobile wallets?” The answer is that they’re probably more secure than
your actual wallet. When you make a payment using a mobile wallet, it
doesn’t use your debit or credit card number; instead, it employs a
randomly generated number assigned to your card called a token.
These tokens change with each transaction you make, so no one can
duplicate them. That’s a lot safer than a traditional credit card, which
if lost or stolen can be used multiple times before you get around to
cancelling it.
What’s
more, if you lose your phone, you don’t have to worry about someone
using your credit card, because your card number isn’t stored on your
handset. Each of these mobile wallets also requires you to use a
password or your fingerprint to pay for items, so there’s even more
security keeping your card safe.
However,
mobile wallets come with some sizable gotchas. For one thing, they’re
only available for smartphones released in the last year or so. And not
all banks, credit cards, wireless carriers, or stores support all of
these mobile payment options.
Are
mobile wallets ready to really replace your actual wallet? I tested
each of these three mobile wallet apps to find out. While each has its
benefits, only Samsung’s is truly ready for prime time, thanks to its
wide support among merchants.
Samsung Pay
Samsung’s aptly named Samsung Pay service is the newest of the three major mobile wallets, so I’ll start with it first.
Samsung
Pay uses two technologies to allow you to pay for things almost
anywhere you go: NFC (near-field communication) and MST (magnetic secure
transfer). NFC uses a special chip in your phone that lets it
communicate with NFC-enabled payment terminals.
(How
would you know? Most NFC-enabled terminals have some kind of signage
indicating they use the technology. The problem is, only a small
percentage of retailers have payment terminals that support NFC.)
That’s
where MST comes in. This is the same technology that regular credit
card readers use. So you can use Samsung Pay at any nearly credit card
swipe terminal in the U.S. — making it the most widely accepted mobile
wallet on the market. No one else comes close.
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