Is your money safe with mobile wallets?

Mobile wallets have a long history, with various forms of payment systems being introduced over time. The concept of using non-coin-based currency systems has been around for a while, but it is only in the 21st century that the technology to support such systems has become widely available.

The first patent exclusively defined as a “Mobile Payment System” was filed in 2000. Mobile payment, also referred to as mobile money, mobile money transfer, and mobile wallet, generally refers to payment services operated under financial regulation and performed from or via a mobile device.

The electronic wallet (E-wallet) makes available all the functions of today’s wallet on one convenient smart card eliminating the need for several cards. Today, mobile wallets are widely used, and QR codes have become part of quotidian placemaking, especially during the COVID-19 pandemic.

The Philippines was one of the first countries to pioneer digital payments in 2001 with the launch of mobile money. Since then, mobile wallets have become increasingly popular in the country. As of 2022, Filipino consumers have turned to mobile wallets and QR payments to complete their shopping transactions due to reduced physical shopping.

According to a report by the Bangko Sentral ng Pilipinas, there were approximately 140 million e-wallet accounts in the Philippines in 2020, up from 41 million in 2019. In 2017, the number of registered e-wallet accounts in the Philippines was almost 9 million.

With reduced in-store shopping, Filipino consumers have turned to mobile wallets and QR payments to complete their shopping transactions. A recent analysis conducted by consumer finance firm Digido showed there were over 58 million active users in the Philippines who spent a total of 4.4 million hours using e-wallet applications in 2022.

GCash was launched in October 2004 as an SMS-based money transfer service by Globe Telecom. It was Globe Telecom’s answer to Smart Communications’ Smart Padala which aimed to serve the majority of Filipinos who lacked access to formal banking services at the time.

GCash started with the aim of making everyday payment easy with the help of partner merchants. It was first conceptualized in 2004 as an SMS-based domestic remittance service due to the number of Filipinos working abroad and finding it difficult to send money to their families.

As of May 2022, GCash has more than 60 million users. Over the years, GCash has evolved into a mobile wallet, mobile payment, and branchless banking service. In 2021, GCash strengthened its partnership with the public sector to fast-track economic recovery amid the pandemic.

In 2022, GCash partnered with Xendit to provide a simpler, more secure, and seamless payment solution. GCash has also collaborated with Grab to encourage more users to use their platforms given the increasing demand for cashless payment solutions.

According to several sources, including The Points Guy, Citizens Bank, and Seacoast Bank, mobile wallets are generally considered safe. When you load your card information onto your mobile wallet app, your data is encrypted and protected.

The key to the mobile wallet’s improved security is its powerful encryption. Unlike a physical debit or credit card transaction, your payment information is not stored on the merchant’s system, which reduces the risk of fraud.

However, there are still risks associated with using mobile wallets, such as personal liability in the event of fraud. It is important to take precautions to make sure your information and device remain secure. Overall, mobile wallets are considered safe, but it is important to be aware of the risks and take necessary precautions.