We live in an era dominated by smartphones and online transactions. Traditional wallets are gradually being replaced by their digital counterparts. Also known as e-wallets, these innovative payment solutions have gained popularity and are transforming the way we make payments and conduct banking transactions. Digital wallets are a game-changer in personal finance.
What are digital wallets?
Digital wallets are software-based platforms or applications that securely store payment information on a mobile device or computer. They allow people to make in-person and online purchases, send and receive money, pay bills, keep different cards, and much more. Digital wallets use near-field communication (NFC) technology and QR codes to facilitate seamless and contactless transactions with another person or business establishment.
How to use digital wallets?
Apple, Android, and Samsung smartphones have a pre-installed and secure Wallet app to hold your credit cards, banking information, insurance cards, events tickets, boarding passes, loyalty reward cards, etc. The first step to using your digital wallet is to add a card or banking information to your Wallet app. Once you’ve added a payment method on iPhones, double-press the power button to quickly access your cards from the lock screen. On Androids, tap on the small wallet icon in the bottom right corner of your lock screen. Then, simply hold your phone near the card reader and authenticate the payment with your fingerprint, PIN, or facial recognition.
What are the risks of digital wallets?
Although most people are concerned about the security of mobile digital wallets, the truth is that it is the most secure payment method:
All transactions are encrypted, and your bank account or card information is hidden from vendors.
Making any payment requires you to authenticate biometrically or with your PIN or password.
Many mobile digital wallets offer fraud protection if your account gets compromised.
The biggest risk of using a digital wallet is your phone battery dying: no battery, no wallet, no cash.
What if I lose my phone?
Just like the pickle you might find yourself in when you lose a regular wallet, losing your smartphone does not affect your digital wallet. Not only can you remotely erase a lost phone from any computer, but also, making any payment using your wallet requires a secret pass code, and each time you make a transaction, the wallet keeps a detailed transaction receipt, including the map address for each transaction.