To an increasing number of young people, sporting a loaded wallet is outdated, as the millennial tuck, no-show socks, and skinny jeans. For the cool kids, having just a smartphone is the trend. Iykyk — which stands for “if you know, you know,” for those unaware. As a 39-year-old technology columnist, I am not part of that in-crowd. It’s inconceivable to me to go without my wallet, which contains essential items like my driver’s license. So, in an attempt to appear trendy once more, I enlisted the help of my 23-year-old colleague Yiwen Lu to find out how they manage this lifestyle, and then I took the plunge myself.
By giving up my physical wallet, I am aligning with young people like Ruby Hegab, a 19-year-old student in Fremont, Calif. Since receiving her first credit card last year, she has relied on her iPhone to make payments for groceries, parking meters, insurance cards, and restaurant meals.
A study of over 2,500 Americans on digital payments found that about 80 percent of Gen Z respondents are using mobile wallets, with half of them eager to expand their phone’s use beyond payment methods. Younger individuals are increasingly using their smartphones for functions that older adults traditionally used a physical wallet for, such as storing documents like driver’s licenses, boarding passes, and event tickets.
The evolution of mobile wallets reflects how much progress has been made in recent years. A decade ago, when I covered emerging mobile payment apps, the technology was not widely embraced. However, in the face of a global pandemic that shifted people towards contactless payments, Apple and Google enhanced their software to support digital driver’s licenses and transit cards, making mobile wallets more practical.
Despite a few hiccups, embracing a wallet-less lifestyle for a week using only my phone for shopping, going out to bars, dining, and attending movies proved mostly successful. While my phone sufficed in most situations, paying for dinner and providing a digital driver’s license to buy wine were more challenging tasks.
If you are considering giving up your wallet or reducing the bulk in your pocket, here’s what you should know:
Payments can be made by Android and iPhone users in most stores using Google Pay and Apple Pay by tapping their phones on readers near the cash register. Many small businesses accept payments through third-party apps like Venmo, which enable you to scan a barcode to send money.
However, there are inherent risks to relying solely on a mobile wallet. It’s crucial to activate security features to protect your data. In the event of theft, precautions should be in place to prevent unauthorized access to your personal information and credit cards stored on your device.
When it comes to insurance cards and other documents, digital scans or photos are widely accepted. Some insurance providers offer digital cards through their apps, which can be added to your mobile wallet. Storing images of all important documents in a digital note on your phone can simplify the process of accessing them quickly.
While digitized driver’s licenses are still being tested in select states, they are not yet a universal substitute for a physical license. It’s advisable to continue carrying a physical ID to avoid potential complications in situations where digital IDs are not accepted.
In conclusion, as mobile wallets continue to evolve and become more prevalent, younger generations are leading the shift towards a wallet-free lifestyle. Despite some limitations, the convenience and efficiency of digital payments and document storage are making traditional wallets a thing of the past.