With the COVID-19 pandemic, our consumer and payment habits have changed drastically.  New situation and living conditions have created new trends that will have an influence over future society and generations.

Before the pandemic, the choice of payment method by debit card, cash or mobile wallet was primarily a spontaneous decision, based on the preferences of the individual. However, this has not been the case recently. Cashless payments are booming now. Health concern of the individual prevails. Consumers have adopted new habits related to safety and hygiene during the payment procedure itself.

Due to the closure of outlets and shops, most purchases are now made online and via mobile applications. Not only have habits of how, what and where we buy (shopping habits) changed, but also habits of how we pay for purchased goods or services have changed. COVID-19 has significantly contributed to digitalization and to the move towards cashless payments, as well as to the increased usage of mobile payments and mobile wallets (Rolfe, 2020 as cited in Šuster, 2021, pp. 48–49).

Using mobile wallets is extremely safe. Mobile wallets use more security standards and mechanisms and are therefore safer than ordinary debit cards. The magnetic stripe on the back of the ordinary debit card is easy to read with magnetic scanners, which means a greater chance of data theft and misuse. The security aspect is crucial for mobile wallet developers and issuers, as there are sensitive data about the holder and his finances, which can easily become a fraud target. Mobile wallet security technology continues to improve and upgrade, however there are still many people sceptical about the security of mobile wallets use. Mobile wallet security technology includes strong two-factor authentication. Strong customer authentication is authentication using two or more elements that fall into the category of user knowledge (something only the user knows), user possession (something that is in the exclusive possession of the user) and inseparable connection with the user (something the user is), which are independent of each other. That means that a breach of one element does not reduce the reliability of others and that they are created to protect the confidentiality of the data being verified. When they are in use, most mobile wallets require a PIN, fingerprint or other biometric data. Biometric authentication is a security measure which uses biometric features to verify the identity of the person who tries to access the device. Biometric features are unique biological and physical characteristics of an individual, which are extremely hard to falsify.

An additional security mechanism of mobile wallets that uses top security and data protection technology is the tokenization system. This includes exchange system of dynamic tokens that are being used instead of actual card number, so they are not stored in the phone or sent to the retailer (Šuster, 2021, p. 65).

Mobile wallets in Slovenia

Contactless payments with a mobile wallet are an alternative to plastic cards. Mobile wallets in Slovenia are offered by most banks, retailers and telecommunications companies in the framework of their own brand. For companies, this option is simple, fast and cheaper. Below you can find some of the most prominent mobile wallets in Slovenia:

• mBills https://www.mbills.si/
• VALÚ https://www.valu.si/
• M Pay https://www.mercator.si/aktualno/mobilna-denarnica-moj-m/
• Mobile wallets of Slovenian banks (Meško, 2019)

Mobile wallets of fintech giants

There are many mobile wallets of various providers on the market that offer a wide range of different payment and other services. They constantly compete with each other for market share and offer more and more innovative services. The most recognizable issuers of mobile wallets in the world are Google Pay, PayPal, Apple pay, Samsung Pay, Amazon Pay, Alipay, Facebook Pay, Venmo, Zelle, VeChat Pay etc. (Šuster, 2021, p. 52).

References

Meško, A. (2019). Mobilne denarnice nadomeščajo plačilne kartice. Zveza potrošnikov Slovenije. https://www.zps.si/index.php/osebne-finance-sp-1406526635/kartice/9804-mobilne-denarnice-nadomescajo-placilne-kartice-9-2019

Šuster, S. (2021). Mobilne denarnice. Digitalna knjižnica Univerze v Mariboru. https://dk.um.si/Dokument.php?id=149899