Your smartphone will soon replace your wallet–or so the mantra goes. Companies are racing each other to roll out payment systems that will enable consumers to make transactions using a mobile phone rather than having to carry around cash or credit cards. Consumer Reports cautions that there are some serious caveats and pitfalls to consider, though, before you jump on board with digital payments.

It sounds great. You don’t have to carry your wallet or credit cards because your mobile phone will be tied to some form of payment funding system on the backend and you can just take care of transactions using a device you probably have with you all the time anyway. What could go wrong?