How to Use a Digital Wallet

How to Use a Digital Wallet

In a world where convenience and speed are top priorities, digital wallets (AKA electronic wallets) have emerged as gamechangers when it comes to paying for things. Nearly gone are the days of worrying about having enough cash, writing checks, or even swiping a credit card. Digital wallets offer a fast, safe, and secure way to pay for things right from your smartphone or computer. This article discusses everything you need to know about digital wallets – including what they are, how to set one up, and how to use them.

What is a Digital Wallet?

A digital wallet is an application on your digital device (smartphone, tablet, or computer) that allows you to store payment information such as your credit card or debit card. Think of a digital wallet as a traditional wallet but in digital form. Instead of carrying around all your cash, cards, and checks, everything you need to pay for things is stored in your device.

How Are Digital Wallets Used?

Digital wallets are most widely known as a means to store payment information and pay for things at point-of-sale establishments, online, and even between friends and family. They can also be used to store other types of information including store loyalty cards, gift cards, membership cards, event tickets, plane tickets, hotel reservations, identification cards, and even car keys.

What Are Popular Digital Wallets?

There are countless digital wallets available for use in the U.S. and around the world. The wallets that are most used are listed below. Each may offer a slightly different set of features, but they all allow  you to make transactions without the use of cash or cards.

• Cash App
• Apple Pay
• Google Wallet
• Samsung Wallet
• Venmo
• almart Pay
• Paypal
• Zelle

What Are the Pros of Using a Digital Wallet?

There are many benefits to using a digital wallet:

• Convenience: digital wallets reduce the need to carry around bulky cash, credit cards, or checkbooks. Plus, all transactions for each payment type are logged in one place for you to review at your convenience.
• Security: Personal payment information is safeguarded by your device’s security features including facial recognition, fingerprint identification, passcode, and remote lock features. Further, digital wallets use encryption and tokenization to keep your financial information safe. Plus, digital wallets reduce the risk of losing your physical card, cash, or checkbook, which limits the exposure of your financial and personal information to others.
• Speed: Increased transaction speed over swiping cards, counting cash, or writing a check.
  

What Are the Cons of Using a Digital Wallet?

While there are many benefits to using a digital wallet, there are some potential pitfalls.

• Limited Acceptance: While becoming increasingly popular, digital wallets may not be accepted everywhere.
• Some Risk: If your mobile device is lost or stolen and hacked into, your payment information is vulnerable to fraud.
• Technology Dependent: If your device is not charged or service is not available, digital payments may not work.

How to Download a Digital Wallet

The first thing you need to do is decide which digital wallet you prefer based on personal preference and compatibility with your device. If the digital wallet is not already on your device, you will need to locate the app in your device’s app store (i.e. Google Play, Apple App Store, Samsung Galaxy Store, etc.) and download the app. After that, open the app and follow the prompts to add information such as your name, address, and payment information. There may be additional steps required to verify your identity that could include actions like sending a code to your email address.

How to Use a Digital Wallet to Pay for Things

Paying for things is simple when using a digital wallet but varies based on where you are:

• In-store – hold your phone near the terminal and authenticate the transaction using your face ID, fingerprint, or a PIN.
• Online – select the digital wallet option at checkout.
• Person to person – the process varies based on the person-to-person payment app but generally requires both parties to download and use the same app. Be sure you know and trust the person you are sending a payment to.

Digital wallets are a safe, convenient, and secure way to pay for things. If you are looking to reduce the bulk in your physical wallet or find a quicker and more convenient way to pay for things, a digital wallet may be right for you.