According to the latest research, nearly two-thirds of Americans have created a mobile wallet. Whether they’ve transferred money to a friend’s PayPal account or charged their triple mocha Frappuccino on their smartphone, they used it because it’s a simple and convenient way to pay for things.
But that isn’t all.
Though it’s mostly known as a digital stand-in for your old-fashion billfold, the mobile wallet has a potential beyond that of a quick-fire way to pay at the till. The mobile wallet’s role in your finances is changing as FinTech companies roll out new digital services in app form.
Many of the earliest retailers adopting digital payments methods champion the mobile wallet because it gets consumers spending. With your phone always nearby, it’s easy to pay for that last-minute impulse buy.
Before, when your wallet was empty, you couldn’t spend any more. Now, you don’t even need to have your wallet with you; as long as you have a phone, you can always spend.
What is an advantage to retailers can be a hardship for those with a mobile wallet. Spending becomes automatic. If you aren’t careful, you can spend all your extra cash without thinking.
Luckily for those with poor self-control, some FinTech companies are leveraging automatic processes to help you save as easily as you can spend. Many of them, including Acorns, Qapital, and Digit, do so by rounding up the purchases you make and funneling the difference into dedicated savings accounts. While Acorns and Digit cost money to use, Qapital is completely free. It’s up to you to see which services help you save easier and faster.
Convenient borrowing options
Savings are an important facet of your finances that let you take a vacation, buy something cool, or prepare for an emergency. Unfortunately, they’re not always possible to build — even with the help of an automatic savings app.
FinTech borrowing options bridge the gap between emergencies and underdeveloped savings by providing fast-acting advance loans. In some cases, like if you download the app from MoneyKey, you can receive your cash in one business day. They facilitate your payday advance online via a simple app that lets you navigate your application, review your loan status, and check your payment schedule from your phone.
On the opposite end of the spectrum, people who need help preparing for large purchases or long-term savings can find help through FinTech’s investment apps. Apps like Wealthsimple and Robinhood make it simple to build a personalized portfolio without needing any prior knowledge of how the stock market works. They rely on a combination of robo-investments and real-life professionals to create a passive portfolio that’s simple for the beginner investor.
Like the other apps mentioned above, Wealthsimple and Robinhood move traditional financial services out of the bank and onto your phone. You can tap through your profile to create, review, or change your portfolio, adjusting your assets instantly.
Automation is at the crux of most FinTech applications, but these apps won’t download automatically. You’ll have to go through each platform to see if they’ll work for your financial situation. Take the time to discover what’s available. When you choose to supplement your mobile wallet with the best apps, you’ll be able to save, borrow, and invest at any time, anywhere!