A digital wallet helps people in storing their payment options, such as debit and credit cards. It allows you to conveniently use your smartphones to make contactless purchases. Here is all you need to know about a digital wallet and how to use it.
What is a digital wallet?
A digital wallet, also called an e-wallet, is an online payment tool where you can store virtual versions of your debit or credit cards to foster a contactless purchase. Using this allows users to avoid entering card details or even carrying a physical debit/credit card while making payments.
Users can simply link their debit card or credit card account to the wallet and make safe and quick transactions through the ease of their smartphones.
How does a digital wallet work
A digital wallet usually employs software that links your payment details from your connected bank account to the merchant with whom you are making the contactless transaction.
There are a number of apps that work as digital wallets, providing different types of access for financial transactions, including online purchases, contactless in-store payments, and even cashbacks.
Where can I use it to make a contactless payment
You can easily make an online payment using a digital wallet at any store or restaurant. Look out for the contactless symbol at checkout. While some vendors may allow you to simply tap and pay, others can prompt a PIN generation for the transaction.
The best digital wallets
There are various digital wallet apps available for users to choose from. The decision on the appropriate wallet totally depends on the user’s smartphone, location and payment needs. For instance, Apple Pay has become a go-to wallet for iPhone users. Android users often opt for Google Pay or Samsung Pay for their transactional needs. Others may use PayPal, which is accepted internationally.
How to use a digital wallet
After choosing your best-suited wallet, you need to enter your card information. The credit/debit card details will then be encrypted from the backend. It will ensure that only you can use the wallet when you unlock your smartphone.
To make a contactless mobile payment, you have to authorize the digital wallet. Then, hold it close to the card reader to allow the information to be transmitted. Keep in mind, not all retailers accept mobile payments. Therefore, you will have to look for the contactless payment indicator at the checkout counter of your retailer.
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What else can you use it for
They are great to store card information for ease of access. Apart from that, digital wallets are a great place to store and organize other important documents. Some of the documents a wallet can store, besides credit or debit cards, include boarding passes, hotel reservations, gift cards and loyalty rewards cards.
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Is it safe to use?
It is relatively safer to use a digital wallet because your personal information is not on the phone. The wallet acts as a bridge to process a payment between your bank account to the end vendor. A wallet is a safe, convenient, and contactless mode of payment using just your smartphone.
