What is a Digital Wallet? How to Use One?

Remember the times when we used to depend upon cash to make payments and how hectic it was when the bank transfers used to suck out all our time and efforts? Back in those times, when payments used to be a dreadful task for everyone, we would have never thought that digitalisation would bring us a lot of joy and ease. With the introduction of digital wallets, everything got easier and payments became more convenient than we had ever thought.

The concept of a Digital Wallet may be new to you but you might actually be using it without having an idea. Let's get you familiar with what is a Digital Wallet. To start with it, a digital wallet is a great way to receive and send money without having any cash, a physical card or using your credit card number online. However, this contactless payment method is yet not acceptable at the doorstep of every merchant but, slowly, the change is happening.

What is a digital wallet?

A digital wallet serves as a substitute for a wallet or purse. Although it typically comes in the form of a mobile app, you can also access your digital wallet using a web browser and make purchases using other mobile devices, including a smartwatch.

Simultaneously, there are digital wallets that only run on mobile phones, those are known as m-wallets. However, wallets working on a wider range of devices are known as e-wallets or electronic wallets. Moreover, e-wallets cannot be considered bank accounts, although some digital wallets may hold a cash balance that you can easily top up with a debit card or by directly linking your bank account.

The traditional ways of payment methods included carrying multiple payment methods in your physical wallet such as a debit card, credit card, and your local currency cash, however, you can easily add or store multiple cards in your e-wallet. Other than credit and debit cards, digital wallets may also hold Identification cards, Loyalty cards, gift cards, Public transit cards, Concert tickets, Boarding passes, Bitcoin and cryptocurrency.

You can conveniently use your digital wallets for sending money to your family members or your friends or for paying a retailer. Not only this, but you can also send money to yourself.

Merits of Digital Wallets

Digital wallets are the new form of payment system that promotes contactless pay without keeping any cash in your physical wallets. There are uncountable advantages of digital wallets, however, the main ones that you must use them for are as follows:

Ease & Convenience

It is just like using your bank account app online because you might be able to monitor your balance immediately in the app and set up alerts and notifications depending on the sort of e-wallet you use. Digital wallet payments might potentially be more practical and convenient than other forms of payment. Simultaneously, if you choose an e-wallet that facilitates international transactions, you can avoid carrying cash and even exchanging money during your international trips because digital wallets got your back!

Along with this, you can use it to keep items like concert tickets and plane passes so that you won't have to worry about leaving vital papers at home.

Security Factor

After the card theft or your phone is stolen, you don't have to cancel your card and wait for the issuer to send you a new one because you can disable your wallet remotely.

It can be dangerous to carry credit or debit cards in a physical wallet. Even if you never lose or misplace your wallet, when you use an ATM, thieves or hackers might swipe your card data and leave you with nothing.

The certainty of fraudulent card transactions gets decreased with digital wallets. They securely keep your payment information. You can prevent hackers from accessing your card information by utilising various kinds of authentication.

Unstoppable Speed

In times where quickness is really crucial and every second is important, digital wallets can prove to be the biggest boon for everyone in this generation. Transactions can frequently be processed using digital wallets significantly more quickly than by any other payment option. Even credit card payments may not appear right away on your account balance and can take up to several business days to clear.

How to use an e-wallet?

To get started using a digital wallet, you need to set up your wallet by adding your bank account details and your credit card information. In order to keep your card number safe, modern digital wallets typically use a tool called tokenisation.

Even then, it will be preferable to check your e-wallet providers’ security policy. Also, you must lock your e-wallet app with a face ID or passcode tool.

After you have added your financial information to your e-wallet, you can utilise the wallet for online as well as in-store purchases wherever it is acceptable.

Are there any Digital Wallets Currently?

You may have heard of certain popular and safe mobile wallets worldwide, however, here are the three most widely used ones along with the devices that support these digital payment apps:

Apple Wallet

If you are an Apple product user then this is indeed good news for you! Apple Wallet is available on several Apple devices including the iPhone 6 and up series, Apple Watch, and even some iPads. You can use Apple Pay to make contactless NFC payments with the devices for both in-app and online purchases. As of now, several nations worldwide accept Apple Pay, but you need to be aware that your credit or debit card provider can impose foreign transaction fees.

Samsung Wallet

The king of Android phones is Samsung and the brand has its own digital wallet offered to several of its products including phones, and smartwatches. Samsung Wallet allows NFT and MST transactions contrary to both Apple and Google Wallet. The Samsung Wallet software, which lets you store debit and credit cards from more than 1,000 financial institutions, now includes Samsung Pay.

Google Wallet

If you don't have an Apple device, need not worry! Because there's another similar digital wallet for your convenience for Android users; Google Wallet. NFC is also used by Google Wallet (also known as Google Pay), which accepts contactless payments across a wide range of nations. Fortunately, you can save anything in your Google Wallet; right from digital auto keys (only for certain models) to your driver's licence in some U.S. states.

Digital wallets are a great way if you have to send or receive money from international localities, however, if you have to make all your payments through your credit card, then Payansh can help you with its high-tech and secure credit card payment interface online!