What Is a Digital Wallet and How Can It Benefit Your Business

A digital wallet is one of the best things you can do to secure your money.

Many people are using digital wallets thanks to the evolution of technology over the past few years. Digital wallets remove the need to use a physical wallet as they carry all the information you need without needing physical storage.

Anyone with a smartphone can use a digital wallet for purchases in-store and online. But what is a digital wallet? If you’re someone that isn’t using one, understanding how a digital wallet works will convince you to start.

Read on to learn everything you need to know about digital wallets.

What Is a Digital Wallet?

Digital wallets are something that many people are starting to use because of their convenience. Instead of carrying cash, a digital wallet allows you to access your money from your mobile device. 

From your phone, there are a variety of apps that allow you to link your card to them. You can then use your phone at the terminals in stores to pay. Instead of inserting your card into the machine, you can hold your phone up to the sensor located on it.

Not only can you store debit and credit cards in a digital wallet, but you can also store things like transportation passes and tickets. Whenever you purchase a plane ticket, you can store it in the digital wallet of your choice. 

How Do Digital Wallets Work?

Digital wallets often come in the form of applications on mobile devices. However, you can purchase other devices to use one or access the wallet on your computer. Using a digital wallet on a smartphone is the most convenient and popular option.

Most modern smartphones are releasing with digital wallets pre-installed. If your device doesn’t have one, you can download one from the app store. There may be an app made by your bank, which would offer more protection because you don’t need to share data.

After you have the app downloaded and have imported your information, you’ll need to find a compatible terminal. When you go to grocery stores, you’ll notice that many of them have what looks like scanners at the top of the terminal where you pay.

With that scanner, you’ll want to hold your phone up to it for a few seconds after selecting the option on the terminal. You may be asked to input your PIN afterwards, then you’ll be set.

Most airports have also included terminals inside that can be used to make the ticket-handling process simpler. Instead of going up to the counter and printing a ticket or baggage tags, you can get everything you need by scanning your passage at a terminal.

Soon, we may be seeing more uses for digital wallets as technology evolves. For example, many ATMs today are starting to accept the use of digital wallets to deposit or withdraw cash.

Common Digital Wallets

Paypal One Touch

Paypal is a digital payment company that many people are familiar with because it happens to be one of the oldest. Almost every digital service accepts the use of Paypal as a payment method. With Paypal’s One Touch, you can transfer money and make payments while skipping the login screen.

Apple Pay

Apple Pay is a pre-installed digital wallet on all modern iPhones and Apple Watches. You can use Apple Pay both in-store and online, using your PIN or FaceID to do the transaction. 

Venmo

Paypal currently owns Venmo, which is one of the most popular payment-sharing apps for mobile devices. The app is typically used to share money between users, but many services are starting to accept it as a payment method.

Samsung Pay

Similar to Apple Pay, Samsung Pay is a pre-installed digital wallet on modern Samsung devices. What makes Samsung Pay different from most digital wallets is that it offers rewards and cashback for using it.

Benefits of Digital Wallets

Using a digital wallet offers a level of financial management that you can’t find in most things, which you can learn more about by visiting this link.

Not only are there several wallets to choose from, but there are also several benefits:

Convenience

One of the biggest benefits of using a digital wallet is convenience. Instead of going through your wallet or purse to look for something, your digital wallet will have everything. In case you forget to bring something with you, it will always be accessible on the e-wallet.

Organization

Organization is also a major benefit because most digital wallets allow you to store information in categories. For example, your credit and debit cards won’t be mixed with your concert and flight tickets. With just a few swipes, you can find what you’re looking for.

Security

Using a digital wallet offers much more security than using a physical wallet because physical wallets can be lost or stolen. Your digital wallet can’t be accessed unless you enter your passwords or Face IDs, so no one will be able to get into it even if your phone is stolen.

Start Using a Digital Wallet Today

If you’re not already using some sort of digital wallet, you need to start now that you know the answer to, “what is a digital wallet?” Digital wallets will make doing transactions much more convenient and you’ll feel safer while doing them.

Look on your mobile device to see if you have one pre-installed. If you don’t have access to something like Apple Pay or Samsung Pay, you can always visit the app store and download a digital wallet.

Browse our articles to learn more about financial and business advice.

Comments on this entry are closed.

Previous post:

Next post: