Digital/Virtual Wallets 101

You've probably heard about digital, mobile, and virtual wallets a lot recently. But just exactly what are digital wallets? Whichever of those names you've heard, they all mean the same thing. Basically, digital wallets are a convenient way to pay for goods and services without having to carry around your physical credit or debit cards. They work by storing your card information in an app on your smartphone. When you make a purchase, you can simply tap your phone on a contactless reader to pay.

There are many different digital wallets available, including Apple Pay, Google Pay, and Samsung Pay. The one you choose will probably largely depend on what kind of phone you have. Let's go over all the basics of virtual wallets and how to keep your information safe.

The Benefits

• Digital wallets make it easy to pay for purchases without having to dig through your wallet for your credit or debit card.
• They give you 24 7 card access — use your digital wallet to make payments at any time, day or night.
• Your credit card information is stored securely so you don't have to worry about it being stolen.

Things to keep in mind when using a digital wallet:

• This may be a given, but make sure your phone is always charged. You won't be able to use your digital wallet if your phone is dead.
• Be aware of your surroundings when using your digital wallet. Don't tap your phone on a contactless reader if you're not sure it's a secure transaction. Only add credit cards from trusted issuers to your digital wallet. 
• Keep your digital wallet app up to date. This will help to protect your credit card information from security vulnerabilities. It's also important to keep your phone's security settings up to date. 
• Use a strong password or PIN to protect your digital wallet app. 
• If you lose your phone, report it to your bank immediately to prevent possible fraudulent activity.

Here are some of the most popular digital wallets:

• Apple Pay: Apple Pay is a digital wallet that is available on Apple devices. 
• Google Pay and Samsung Pay: Google Pay and Samsung Pay are digital wallets for Android devices. While Samsung is specifically for Samsung phones, Google works with any Android phone.
• PayPal: PayPal is not a true contactless payment method, but it can be used to make payments at some merchants that accept contactless payments.
• Venmo: Venmo is a digital wallet that is primarily used for peer-to-peer payments. However, it can also be used to make payments at some merchants that accept contactless payments.
• Zelle®, like, Venmo, is used most often used for peer-to-peer payments. The difference is, Zelle® is built into many banking apps. This allows you to use your banking app — the one you primarily use for all your banking needs — to send and receive money quickly. 

When choosing a digital wallet, it is important to consider your preferences and what model your phone is. Whichever virtual wallet you go with, remember to be as vigilant and safe as you are with your plastic cards. If you have questions about virtual wallets or any of your banking needs, a Personal Banker from FNBO would be happy to answer them. Give us a call today!