How does a mobile wallet work? Should I trust it? - Other Questions

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » How does a mobile wallet work? Should I trust it?

How does a mobile wallet work? Should I trust it?

Answered on
Add to Favorites:

Good question for an emerging technology! A mobile wallet (or cyber wallet, as some would term it) (or cyber wallet, as some would term it) is a relatively new invention a la the internet being embraced by popular heavy-hitting companies like Google and Visa. It works by allowing its users to make payments at POS at stores and other such place all by taking out their Smartphone. On said phone, there will be an application (“the wallet”) that stores the user’s credit or debit information used in transactions.

Thus, the phone replaces the need for an actual physical wallet. Hence the “cyber wallet” title. Google just revealed theirs to the world and Isis, the result of a hyped collaboration between popular telecommunications services AT&T, Verizon and T-Mobile, will be out early 2012.

Easy enough, right?

The problem comes about the level of trust one should embrace with the card. In the past, even credit cards have an aura of uneasiness to them. What happens if those cards’ private data should be spotted by the wrong people? What if someone steals your card?

These are age-old concerns since the credit card itself has been a viable concern. And thus, with the cyber wallet, they are simply updated to meet our new (and sometimes scary) era.

You can trust a “cyber wallet” as long as you are careful with it. Again it comes down to exercising a lot of common sense on your part. However, because of the scope the internet allows us, the danger is somewhat amplified.

A savvy cyber thief could figure out how to hack into the working of your phone and steal your personal information, if you are not cautious. Malware is easy enough to get installed on your phone, as it is your computer (such as spyware, for example). Android malware – on one of the most popular Smartphone devices – is growing at an alarming rate, as cited by the website Spyware Help Center.

An expert at said the following addressing cyber/mobile wallets and the safety concerns surrounding them: “Yes, you must be wary when making a transaction with a mobile or cyber wallet. There are a lot of little threats that come with the territory, too, which seem deceptively simple. Your credit card information, or debit card (be that the case), is some of the most personal information a fraudster can access and then wreak havoc with. And because of the interconnectedness of the cyberworld, that information can travel far and fast.”

Google Wallet itself will be hitting the market soon enough and happens to offer a lot of incentives to get people to use it, such as instant coupons and merchant rewards programs, like a credit card would.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit

Other Questions in