Mobile Payments vs. Mobile wallets - A Complete Guide

Mobile payments are an increasingly popular choice for consumers when it comes to making payments. With the convenience of a smartphone and a few clicks, you can make purchases both online and in stores. On the other hand, mobile wallets offer more than just payment options but also allow users to store loyalty cards, digital tickets and coupons among other items. While both mobile payments and mobile wallets provide similar services, there are some distinct differences between them.
 
Mobile Payments:
Mobile payments refer to using a smartphone or other mobile device to pay for goods or services in store or online. Examples include Apple Pay, Google Pay and Samsung Pay. Mobile payment platforms make it easy to securely store your payment information, such as credit cards or debit cards. When you pay, the payment is processed via an encrypted connection and often requires additional authentication steps such as Touch ID or Face ID to ensure it’s secure. Payments can be made in-store through Near Field Communication (NFC) technology or online with just a few clicks.
 
Mobile Wallets:
Mobile wallets are digital versions of physical wallets that store your payment information and other items like loyalty cards, tickets and coupons. Additionally, some mobile wallets offer additional features such as peer-to-peer money transfers or the ability to pay bills. Unlike mobile payments, which are typically associated with credit card and debit card payments, mobile wallets can be used to store other forms of payment such as cash or cryptocurrency. Mobile wallets also provide more control over how you spend your money since they track each transaction and allow you to set up budgeting tools like spending limits per month.
 
Overall, both mobile payments and mobile wallets offer convenient ways to pay for goods and services. The key difference between the two is that mobile payments are typically used to make purchases with credit cards or debit cards whereas mobile wallets can store multiple forms of payment and provide additional features such as loyalty cards, tickets and coupons. Ultimately, which option you choose will depend on your preferences and what you need out of a payment platform.