A digital wallet, also called e-wallets or electronic wallets, is a way to pay without cash or a credit card that lets users make transactions through their mobile devices. Digital wallets have become increasingly popular, and there are many options and features out there to ensure that you find the best system that works for you.
If you want to find out more about digital wallets and if they’re safe or not, be sure to keep reading.
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What is a Digital Wallet and How Does it Work?
A digital wallet works in two different ways. The first way allows you to send and receive money and to buy things online. The second way is through an app, like Google Pay, which can be used to pay for something in-store by simply touching your phone to a point-of-sale terminal.
These payments are processed through the system which immediately withdraws the purchase amount from your bank account or a designated debit or credit card. Depending on the system, you might be able to keep cash or cryptocurrency in your digital wallet, which you can then use for future payments.
Are Digital Wallets Safe To Use?
Although they sound very convenient, you might be wondering if they’re safe to use. They are actually much safer than you think. They are tied to a bank account, however, the merchant doesn’t ever see that account number.
You will only be able to access your account with a password, and all your information is encrypted. Additionally, if you think someone has accessed your bank account, you can lock your digital wallet remotely.
Different Types of Digital Wallets
Apple Pay is available for those with an Apple device. You are able to pay for goods and services in physical stores, in the App Store, on websites and through text messages using touch ID or facial recognition. This service has no fees, however there is a fee to transfer money instantly from your digital wallet to your bank account.
Google Pay allows you to send and receive money to anyone if you know their email address or phone number. Additionally, you can pay for things at a point of sale if they have devices that are field communication-compatible nearby. Google Pay is available for smartphones or tablets, in addition to desktops.
You can access PayPal through the website or mobile app. It works with either Apple or Android devices. You can connect your PayPal accounts to your checking account, which allows you to pay from your PayPal balances or bank account.
The most widely accepted digital wallet is Samsung Pay. You can download the mobile app through the Google Play store, which is available on certain Samsung devices. You will be able to pay for goods and services online and in stores, and membership and reward cards are stored in the wallet which allows you to save time and money when you checkout.
Venmo allows you to connect your account to your debit card or bank account to send and receive money from people. The purchases you make can be shared with your friends and they are able to comment on them. There are no fees for sending money from your Venmo balance or for withdrawing cash at an in-network ATM.
Zelle lets people send and receive money through their bank or credit union. Doing so is free, however some financial institutions have fees to process the transactions. Zelle is available through an app and online banking services which is provided by partner banks and credit unions.
Author’s Verdict
Digital wallets are a convenient and easy way to make purchases. There are many different platforms out there, so you can be sure to find one that fits your needs. In addition, they are all free for the most part and are all safe to use.
In addition, we have a list of bank promotions to get some extra cash in your pockets today. You may also want to check out savings accounts if you want to get started on saving up money.
