With the proliferation of Smartphones and the advent of contactless payment, there has been a growing need to offer some sort of protection for those who are using mobile wallets' as they are known. With industry insiders expecting this type of payment to boom over the next year or so, it's time consumers were fully protected against theft or fraud and that's where mobile wallet protection can help.
This type of payment is fast becoming incredibly popular among mobile phone users and high street stores up and down the country. Through using your phone you will be able to pay for goods and services approximately up to the value of 15.
In terms of technology, the payment system used is called Near Field Communication (NFC). This is a way of making simple transactions, exchanging data and making wireless connections to a reader device that is just a few centimetres away from your mobile device. New Smartphones will contain an NFC chip which can send encrypted data to a reader device close by.
So this means that instead of having to pay for items, goods and services using cash, debit cards, credit cards or even cheques, you'll be able to use your phone to swipe or hold against one of the NFC readers which will then make the transaction for you.
Whilst we consider the huge benefits of this payment type, such as being a huge time saver, being convenient and making purchasing quick and easy, it does carry with it a larger risk the risk of having your phone stolen. If you consider that phones now carry credit stored on them ready to make purchases, they become even more attractive to thieves. In fact due to the all-encompassing nature of Samrtphones, these devices have never been so attractive to potential thieves. So what's the solution?
Mobile Wallet Protection
With mobile wallets becoming the norm, industry experts predict that by 2015 they may even replace cards and in some cases even replace cash. By the end of this year alone, almost 60,000 shops will be expected to accept this type of payment. Like anything involving consumers, their possessions and their hard earned cash they will need protection, and this is where mobile wallet protection is a god send.
Losing your phone is not only frustrating, but it's potentially dangerous if someone has access to all of your personal information and data. Coupled with this a new threat; if someone was to steal your phone and rack up huge debts thanks to this new payment system, you won't be best pleased.
Therefore with a changing mobile landscape we need to have protection that best suits our increasing demands. Imagine how frustrated you would be if you had an existing mobile phone insurance policy, where you were covered for loss or theft. You call you insurer who starts to get the wheels in motion to compensate you accordingly; however, you notice that someone has been using your mobile wallet to pay for a significantly large shopping spree. If this isn't covered in your insurance policy, then unfortunately it's unlikely that you'll get the money back which has been spent.
With mobile wallet protection this doesn't have to be the case. It's become a growing demand in any mobile phone insurance policy and already certain insurance companies are offering this in their mobile phone insurance policies.
All major phone companies will be incorporating this new technology in their phones and network providers and handset makers are keen to introduce this technology, just as large retailers are too. Likewise, mobile phone insurance providers have stepped up to offer a new level of protection for their customers. Depending on your insurance provider you can claim back up to 100 or more if your phone has been stolen and someone has used your mobile wallet.
As with any type of insurance, it's all about risk. This risk can be significantly reduced by adding mobile wallet protection to your mobile phone insurance policy in this sense mobile wallet protection makes perfect sense.