September 26, 2023 |5 min read
A digital wallet—sometimes referred to as a mobile wallet—provides a convenient way to make purchases with various merchants. But that’s not the only benefit of using one.
Use this guide to learn about some other ways to use a digital wallet and how adding your Capital One card to a digital wallet can streamline how you make purchases and more.
Key takeaways
- A digital wallet is a tool that gives you the ability to store credit cards and/or debit cards and make digital transactions in stores and online.
- Digital wallets provide a quicker and more secure way to pay for your purchases.
- More benefits of using a digital wallet can include sending and receiving money, organizing travel and event tickets, splitting expenses and gaining spending insights.
- Capital One customers can connect their Capital One credit cards to various digital wallets, like Google Pay™, Apple Pay® and Samsung Pay®, for a convenient and more secure payment option.
Try a more secure way to pay
Add your card to a digital wallet from the Capital One Mobile app.
The basics of digital wallets
You can use a digital wallet in stores, from your computer or on a mobile device. Using a digital wallet can be a convenient way to make purchases. Plus, it eliminates the need to carry a wallet with all your physical cards when shopping in stores.
But digital wallets can store more than just credit card information. They have added features and benefits that can make managing your finances a bit more streamlined. Let’s take a closer look.
8 other benefits of using a digital wallet
Here are a few more advantages of using a digital wallet:
1. Organize your wallet
Digital wallets can store credit cards and other types of documents and information, like boarding passes and membership cards, which can help declutter your physical wallet. For instance, you could also use a digital wallet to:
- Store boarding passes, gift cards and tickets
- Organize coupons
- Manage membership cards, like student IDs and transit cards
- Access hotel reservations digitally
- Keep loyalty rewards cards in one place
Tip: Remember to keep a backup payment option with you just in case the merchant doesn’t accept digital copies of your cards or IDs.
2. Enjoy a contactless payment option
With a digital wallet, you can take advantage of contactless payments. If a payment terminal features the contactless payment symbol, you can simply open up your digital wallet app and hold your mobile device close to the reader to complete a transaction.
3. Added security
Using a digital wallet can be a more secure way to pay because it usually requires another form of verification, like facial recognition or a PIN passcode, to access. Through tokenization, which is a process that replaces your credit card information with a random number—or token—for each transaction, each payment made via a digital wallet uses a unique number so your actual card number isn’t shared with the retailer or merchant.
4. Send and receive money immediately
You can use certain apps like Google Pay, Apple Pay and Samsung Pay to transfer and receive money from your debit card, bank account or an available balance on the app. This can come in handy when you need to pay someone, or it can be a quick and easy way for a friend to pay you back when you pick up the tab.
5. Split expenses
Some digital wallets let you separate bills when sharing an expense with another person or a group of people. For example, Venmo and Google Pay give you the option to request payments from other users. From there, you can customize the amount requested from each person and track any pending payments.
6. Earn rewards
When you use a digital wallet to make a purchase, you typically will enjoy the same benefits, like earning cash back or miles, as you normally would for qualifying transactions. For example, you may be able to link your Capital One cash back credit card to your digital wallet and receive cash back on qualifying purchases made with that card.
Tip: Be sure to read the fine print, because some of these promotions may require you to activate them first to earn the reward.
7. Transfer money internationally
Do you have friends or family living abroad, or are you planning a big trip? Depending on your location, your digital wallet may allow you to transfer money internationally. It can also be useful if you need to send money to a family member who’s traveling out of the country and in a bind. Just make sure to check the laws of the country you’re sending money to in order to determine whether digital wallet transfers are allowed.
8. Get spending insights
Certain digital wallets let you link your bank account to the app so you can keep tabs on your financial habits. For example, Google Pay gives you the option to view how much money you’ve spent and how much money you have in a given period.
From there, transactions are automatically broken down into spending categories so you can better understand where your money is going. You can use this information to find areas for improvement and even establish a budget tailored toward reaching your financial goals.
Adding your Capital One card to a digital wallet
If you’re a Capital One cardholder, you can link your credit card to various digital wallets—at no added cost. Check out the following guides to learn more about how to add your credit card to the digital wallet of your choice so you can choose how you want to pay:
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Adding a Capital One card to PayPal
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Adding a Capital One card to Google Pay
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Adding a Capital One card to Samsung Pay
Other ways to use a digital wallet in a nutshell
Using a digital wallet can provide convenience and added security when making purchases. Plus, there are added benefits, like the potential to maximize credit card rewards and split expenses when you’re out with a group of friends.
Ready to start using your digital wallet? Learn more about the advantages of linking your Capital One credit card with your mobile wallet.
