Have you ever gotten to the checkout line before realizing you forgot your wallet? There’s no need to stress because if you have your phone on you, then you could be in luck.
You can use your phone to pay for your coffee, groceries, and other purchases by using a digital wallet app on your phone. Digital wallets are easy to use and have become the new normal in many countries across the world. Even so, some people may wonder if the apps are too technologically advanced or if they’re particularly safe.
However, it’s likely you’ve already been exposed to digital wallets in your daily life. If you’ve ever downloaded the Starbucks app to pay for a Pumpkin Spice Latte or bought coffee via the Dunkin app, then you’re already using a mobile wallet app.
Making the switch from using your physical wallet to a digital one is much simpler than you may think. Read on and see how easy and safe digital wallets are to use.
What is a digital wallet?
A digital wallet is an electronic payment system that stores your bank account or credit card information and allows you to make purchases securely.
The digital wallet app stores your bank and credit card information, where you can view all your latest transactions. In addition to your credit cards, your mobile wallet also stores plane tickets, event tickets, coupons, gift cards, public transit cards, and even some virtual IDs.
If you’ve ever used the Starbucks or Dunkin Donuts app to make purchases, then you’ve already used a digital wallet app. Buying a coffee in the Starbucks app is no different from using your Apple Pay to pay for your groceries at Target. It stores your financial information and allows you to make purchases with your phone at any store that uses digital wallet technology.
If you’re leery of how digital wallets work, let the simplicity of use and encryption technology ease your worries. Digital wallets use near-field communication (NFC) to make purchases. So, when you place your phone near the card machine, your phone communicates with the payment terminal. Some digital wallet apps also use magnetic secure transmission (MST,) which is like the magnetic stripe on the back of your credit card.
Here are some examples of popular digital wallet apps:
- Apple Pay
- Google Pay
- Samsung Wallet
- PayPal
- Venmo
What are the benefits of using a digital wallet app?
Convenience
One of the main reasons digital wallet apps have risen in popularity is their convenience. Digital wallets allow you to leave your physical wallet at home. Now, you can complete a quick grocery run without carrying your purse.
Plus, digital wallets are more germ-free. You don’t have to pass your credit card to the cashier or even touch the payment terminal. Instead, simply pull up the digital wallet app and place it near the payment terminal.
Also, digital wallets make it easy to check out faster online. Your mobile wallet remembers your personal information, so you won’t have to reenter your credit card number or shipping address every time you check out online.
In many countries, you can also send or receive a money transfer using some digital wallet apps. If you use the Western Union app, you can send money directly into a loved one’s mobile wallet in many cases. Whether you’re sending money to help cover a bill, as a gift, or for no reason other than “just because,” Western Union makes it easy to send and receive money transfers across multiple modes of technology.
Security
If your biggest concern about digital wallets is the app’s security, then you have very little to worry about. Digital wallets are incredibly secure and use unique technology to protect your personal information.
Digital wallets use encryption technology, which randomly scrambles your personal information. This makes it much more difficult for hackers to access your financial data. Plus, mobile wallets attach a token number to each transaction and do not share your personal account information with the merchant.
If a thief steals your physical wallet, you’ll have to contact your bank to cancel all your cards. But, digital wallets cannot be stolen or lost; however, you will want to password protect your phone in case the phone is lost, so no one else can gain access.
In addition to all the existing security in the app, you can add an additional layer of protection by adding a password, Face ID, or two-factor authentication to further protect access to your financial information.
Organization
You may wonder what else a digital wallet can be used for. Digital wallets are extremely versatile and allow you to store more than just your credit cards. Digital wallets can also store loyalty cards, hotel reservations, coupons, plane tickets, gift cards, and even virtual IDs! You no longer have to print out your boarding passes, instead, simply pull them up on your phone.
Digital wallets make it easy to consolidate everything into one place. Gone are the days of holding up the checkout line to search for a specific credit card. Simply pull up your digital wallet app and choose the specific card you’d like to use, then tap and pay.
It’s not a huge leap to start using a digital wallet app. If you’re already using the Starbucks app or any other major store’s app, then you’re already halfway there to using a mobile wallet. So, download a digital wallet app to your phone and start making your life easier today.
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