8 Reasons to Start Using a Digital Wallet
These days in America, it’s hard to find someone who isn’t embracing smartphone technology. When you think about it, most people use their phones for everything. In fact, over 60 million Americans are using their phones as a digital wallet, according to eMarketer. Since digital wallet usage has been rising steadily over the last few years, many traditional retailers have upgraded payment systems to make it even more convenient for these early adopters to complete transactions quickly and securely. If you’ve been thinking about making the switch yourself, there are some great benefits you may be missing out on. But before we get into that, let’s start with the basics.
What Are Digital Wallets?
Digital wallets are apps or virtual storage compartments that allow you to digitally store payment card information on your phone. These virtual wallets also make it possible to complete transactions for both online and in-store payments using only your phone – no physical card necessary! Digital wallet options can vary but pretty much every smartphone already has at least one default option, such as Apple Pay®,36
or Google Pay™37
already built in. How and where you’re able to use your digital wallet will vary on individual merchants and their payment systems, but these new forms of payment are becoming more widely accepted every day.
How Do You Use a Digital Wallet?
One reason for the increasing popularity of digital wallets is their ease of use. Getting started is easy and only requires that you walk through a few simple steps. You’ll probably be done in less than a minute. After you’ve set up your digital wallet with your information, it is simple to make payments and even send money to friends and family.
When it’s time to make your first purchase, all it takes is a payment terminal that’s compatible with your device. If you’re using a popular program like Google Pay or Apple Pay, most terminals in physical stores utilize Near-Field Communication (NFC) chips to read payment information when you hold your phone close enough to the terminal. Samsung Pay mimics the technology used in your magnetic stripe, so you can use it with any card reader. Depending on your digital wallet’s security settings, you may also be able to set up a biometric authentication that would require you to scan your thumb or face to verify each purchase. When shopping online, just follow the prompts outlined by the retailer to complete your transaction.
Where Can You Use a Digital Wallet?
As you’ve probably already noticed in major retailers, digital wallet integration is quickly becoming mainstream. Some of the places you’re likely to be able to use a digital wallet to make your payment include:
- Online stores
- Brick and mortar stores
- Online payments between family and friends
- Recurring bills
Are Digital Wallets Safe?
As long as you are using a digital wallet from a reputable source, you should not experience any trouble. In fact, in most scenarios, using a digital wallet is actually safer than using a traditional debit or credit card. Because each transaction is encrypted, sensitive data such as card and account numbers are protected in a way they never have been before.
Are There Any Disadvantages of Using a Digital Wallet?
Digital wallets tend to be safer and more convenient, but there are some instances where you may want to keep your plastic card handy. For example, this new technology has not been adopted everywhere. While abroad, world travelers may run the risk of running into retailers who do not accept digital wallet payments. However, the average card user in America today will be able to enjoy using her/his digital wallet at many retailers – especially big box stores.
8 Benefits of Using a Digital Wallet
Digital wallets are a great option. Here are 8 benefits you can expect to enjoy if you decide to make the switch.
Whether it is faster check out times or just less time fumbling for your wallet or purse, digital wallets can help streamline your shopping experience. With the right digital wallet, you can always be ready to step up and check out. Most tap transactions are processed in 2 seconds or less, whereas chip-card transactions can take upwards of 10 seconds to go through.
For anyone who’s looking to cut down on the clutter, digital wallets are a great option because they represent one less thing you have to have in your pocket. Remember, most digital wallets allow you to store multiple cards and payment options so you can leave your cards at home and slim down your wallet.
Because your cards are safe at home, digital wallets help eliminate the concern of your private information being stolen by credit card scanners or suspect cashiers. And like we mentioned before, a trusted digital wallet will encrypt your transaction data, making it virtually impossible for criminals or hackers to steal.
Different digital wallet options offer rewards, discounts, and even cash back to attract new users. Shop around when choosing a digital wallet because you just may find something that pays you back. Just imagine, you could be pairing your digital wallet incentives with debit rewards points if you have our Free Checking with Debit Rewards account.
If you’ve ever split the check at dinner or borrowed a few dollars for parking, you know just how frustrating it can be to pay back your friends if you don’t normally carry cash. Many digital wallets have peer-to-peer transfer ability, making it easy to send money to friends and family quickly without incurring any fees.
Manage Multiple Cards Easily
Most digital wallets allow you to set up multiple payment options, including both debit and credit cards. If you manage multiple accounts, this is a convenient way to keep your funds sorted out in a way that will help you reach your financial goals.
Track Your Spending
A digital wallet may help you eliminate a mound of old receipts. Most wallets keep a record of your transactions and also include tracking features that will help you break down your expenses by category, date, or amount.
Have an Easier Experience
Most wallets for your smartphone are designed with user experience top of mind, this means most apps will be intuitive and simple to use. If you find that there’s a learning curve, don’t worry! Chances are you will easily find online tutorials and videos to help you navigate any issue that comes up.
Time to Get Started
Did you know that your First Service debit and credit cards are compatible with some of the most popular digital wallets on the market? If you haven’t already, now is a great time to set up your debit and credit cards in the digital wallet of your choice. You could be just seconds away from being set up for safe, convenient purchases with your phone. What are you waiting for? Let’s get started!