In recent years, cryptocurrency has been a hugely popular phenomenon. Big companies like Mastercard (Tesla) and Tesla, which have expressed interest in cryptocurrency, heightened public curiosity. El Salvador became the first to recognize cryptocurrency as legal tender in 2021.
Cryptocurrency’s growing popularity stems mainly from its rapidly increasing value. Bitcoin was worth less than a penny when it first became available. It reached its record high price of $68,000 in November 2021. Crypto offers traders significant profits and low risk in a volatile market.
Moreover, digital wallets make payments convenient. Users can leave their physical wallets at home and pay for products using their smartphones or watch. Instead of carrying cash or credit cards, consumers don’t have to deal with the hassle of keeping track of their finances. They also don’t have to worry about logging into accounts or downloading statements, which can be difficult if you have forgotten your login credentials.
While the current trend is moving towards a digital wallet, there are several reasons to implement strong customer authentication for security. First and foremost, consumers can make online payments up to the credit limit of their digital wallets. By implementing strong customer authentication solutions, businesses can save money on fraud prevention and administrative costs associated with card-on-file. In addition, implementing this technology will increase the overall convenience of consumers and merchants alike.
The convenience of a digital wallet allows for contactless payments. Customers can add their credit and debit cards to digital wallets with a button. The convenience of a digital wallet is increased by its integration with leading mobile phone developers. Moreover, shoppers can pay instantly using their mobile devices. It means a lower risk of fraud and chargebacks. With the integration of biometric 2FA authentication, users can have a more secure digital wallet experience.
The security of digital wallets is mainly due to tokenization. Each transaction in a digital wallet creates a one-time code. It dramatically reduces the risks of identity theft. This feature can be used with strong consumer authentication solutions and two-factor authentication for even better security. The user must use a Face ID or Touch ID to verify his identity with the latter. The process is more straightforward and quicker than traditional card payments, but you cannot ignore the security of digital wallets.
For more information, here is an infographic from LoginID.