It is an understatement to say that cell phones have changed the world. Everything is faster and more efficient, including how we travel and communicate. However, it's only within the last decade that we have seen a real change in how we manage our finances through our phones.
Below, we'll break down the four most significant ways mobile devices have changed our financial habits and what we can expect in the future of financing through apps.
1. Faster Transactions
According to FTI Consulting, payments via mobile devices are expected to exceed USD $2 trillion globally by 2023. There's no doubt we would never see this incredible growth if customers couldn't make fast transactions. Consumers can now send and receive money in the blink of an eye. You can check on your PayPal balance, move around your investments, and organize your funds.
Curious what is the fastest way to send transactions? You can download apps that have been created specifically for payments, such as the Cash App, or you can read more about referral codes.
2. Efficient Banking
While cell phones have made chatting with friends and accessing the internet easier, not everyone uses these amazing tools for organization. The notes app lets us organize general thoughts, and the calendar reminds us of important events. However, the most important thing we can organize on our phones is finances.
With approximately three billion users having access to retail banking services through their smartphones and other technologies, this digital revolution has changed the relationship between banks and their clients. Now you can efficiently track your purchases and budget using specially designed programs, and you can easily invest and save with a few clicks.
3. New Safety Precautions
Having financial details saved on their phones can put users in danger of online scams. According to global information company TransUnion, suspected digital fraud attempts are up by 25% in the US.
But as phones and scammers have adapted, so have financial services and safety technologies. Anti-virus software warns against possible attacks from websites and detects malignant software. It is now an installation option with some mobile banking apps.
Banks have often also introduced two-step or three-step authorization. Some companies have started to educate their customers on online safety by sending information in the post or by email and pointing out fraudulent patterns with the users before transactions are completed.
4. Save Credit Cards to Your Phone Wallet
Mobile devices have changed our credit card habits too. According to CNBC, in 2020 51% of Americans used some sort of contactless payment, and nearly 143 million Americans had already used mobile payments in 2019.
There is no more need to carry around bulky wallets, as you can now upload your card data onto your phone. There's no longer a need to leave the house with anything other than your cell phone; you can use a virtual wallet to pay for products on-the-go.
The rise of mobile payments has only grown due to COVID-19. Contactless payments became an increasingly useful method of paying safely, as it doesn't require customers to touch a screen and potentially spread virus contact.
Bottom Line
Thanks to the latest breakthroughs in financial management apps on our cell phones, handling money is much easier, faster, and efficient than ever before. We spend less time waiting in line at banks and more time quickly paying, budgeting, organizing, and saving from our phones.
Looking to the future, utility and city service bills are increasingly likely to be paid from phones. With the success stories of WeChat and GooglePay, it is also likely that social media and mobile payments will continue to develop.