What Is A Digital Wallet — And Is It Safe?

What Is A Digital Wallet — And Is It Safe?

Erica Gerald Mason   September 30, 2021

When people talk about having a wallet, they usually mean a place to physically stash your cash and credit cards. But these days, you can use contact-less digital wallets instead of traditional physical ones — and they've only grown in popularity during the COVID-19 pandemic.

With a quick scan or a tap, you can complete financial transactions safely and securely. That's because digital wallets allow you to pay without having to use your physical credit cards.

So What, Exactly, Is A Digital Wallet?

The term "digital wallet" refers to any device storing information related to financial transactions via an app. They include smartphones, wearables such as smart watches, tablets, and laptops.

How Do Digital Wallets Work?

A digital wallet stores your payment information via an app so you can make purchases electronically, such as from your computer, smartphone, watch or other smart devices, whether you're in a physical store or online.

To complete the transaction, you might need to provide a passcode or passwords, use your device's facial recognition software, or authenticate with your fingerprint. Ultimately, this added security measure makes sure it's really you who is utilizing your phone to make purchases, pay someone directly or book a ticket.

If you are using a non-mobile digital wallet, such as your laptop, you may have to log in or provide a password. There is no need to locate your physical card and type in several details, which makes the checkout process go much quicker and easier.

Here's How You Can Use Your Digital Wallet?

So, here's where digital wallets really shine.

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