A digital wallet is exactly as it sounds: your wallet full of credit cards, digitally on your phone. If you decide to use a digital wallet, you won’t have to carry around a thick wallet in your pocket or purse. Some stores allow you to use your digital wallet by only tapping your phone, while websites allow you to use a digital wallet app to complete purchases.
Here’s everything you need to know about digital wallets.
Types of digital wallets
There are a lot of digital wallets you can use, depending on your device and purpose. Here are some of the most popular digital wallet options:
- Apple Pay.
- Venmo.
- Amazon Pay.
- PayPal.
- Google Pay.
- Samsung Pay.
- Zelle.
According to Time magazine, there are different versions of digital wallets:
- Closed digital wallets: These wallets are only usable through its designated issuer, such as Amazon Pay, which can only be used for Amazon purchases.
- Semi-closed digital wallets: These wallets allow you to make purchases at specific stores and sites, such as Venmo.
- Open digital wallets: An open wallet can let you purchase and make transactions, such as PayPal.
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According to a 2023 survey from Forbes, 53% of participants use digital wallets over traditional physical wallets, while over 70% of participants will use digital wallets as a primary payment method. They also found that the most popular reason why the participants used digital wallets was convenience.
Digital wallets have several perks, according to Wells Fargo. You can make secure payments without worrying about your credit card information being stolen, you can use a biometric ID (such as a finger print) to confirm it is you using the wallet and some digital wallets are ATM compatible.
Where is my digital wallet on my phone?
Most digital wallets follow a similar procedure. Time magazine has a simple procedure you can follow to set up almost any digital wallet.
- Download the digital wallet app or go to its website to create an account.
- Add your payment source (such as a credit card or bank account).
- To send money to another person or business, just go to the payment section in your digital wallet (you may have to scan a code or look up the name of who you’re paying).
- To use your digital wallet in person, just unlock your digital wallet and authorize it, then just hold your phone on the card reader to transfer the information.
Which is best digital wallet?
If you want more information on the different types of digital wallets and how they work, here are seven common digital wallets available and how they’re used.
- PayPal: Free to use and create an account, PayPal is used by individuals and businesses all over the world. Many shopping websites have PayPal as a payment option. You can add a credit card, debit card or a bank account. There is no fee between PayPal users and all transactions are secured. You can use the PayPal app or log into your account on your browser.
- Venmo: Another free digital wallet, Venmo allows you to add your cards and bank account with no hidden fees. Venmo has an option for minors ages 13 to 17 where parents can control their Venmo account. Venmo also gives you the opportunity to invest in cryptocurrency, receive your direct deposit from work and pay businesses. Venmo is available for both Android and iOS users.
- Apple Pay: Available only on Apple products, you don’t need to download a separate app to use Apple Pay. Just open up your Wallet app on your iPhone and add your credit or debit card information. Apple Pay is accepted in over 85% of stores and on apps and websites. It also comes with a payment plan option called “Apple Pay Later”.
- Samsung Pay: Now part of Samsung Wallet, this app is only available to Samsung devices. But it can hold your credit cards, membership cards and gift cards, along with your COVID-19 vaccine record. Samsung Pay works in stores, on apps and online. Your credit card information is encrypted every time you pay.
- Google Pay: Available as an app and on the web, Google Pay will hold all your different credit cards and is available to anyone with a Google account. Many websites and stores accept Google Pay; it’s as simple as clicking “Buy with GPay” or tapping your phone at the cashier. It’s a part of Google Wallet, which allows you to store more cards such as plane tickets, bus passes, identification cards and more.
- Cash App: This app is able to handle your money transactions, stocks and bitcoins. It has no fees to use and you can also do your taxes on it. You can pay other people by only knowing their phone number, email or $cashtag. To use the app in stores, you just need to scan the QR code at checkout and online you just choose “Cash App Pay”.
- Zelle: This app is often used by banks nationwide, so before downloading the Zelle app you should check your banking app first to see if it’s there first. If not, you can download Zelle. When you do money transactions on Zelle, all the money goes directly to your bank account. The app is only limited to Visa or Mastercard debit cards from a U.S. bank; it will not accept credit cards or international debit cards.
