Faster, safer checkout experiences with just a wave of your phone
Did you know that the digital wallet industry is projected to experience an astounding 83% growth by 2025? According to a study from Juniper Research, the global digital wallet spend is expected to surpass $10 trillion within the next few years. If you have yet to try a digital wallet, let’s look at some of the benefits and safety features to consider.
What is a digital wallet?
A digital wallet, also known as an electronic wallet or e-wallet, is a powerful digital tool designed to securely store payment information and speed up transactions. It serves as a virtual replica of your physical wallet where you can store credit or debit cards, bank account information, and even loyalty cards, all within a single app. Whether you’re making online purchases, peer-to-peer payments, or participating in loyalty programs, e-wallets streamline transactions with instant access to your payment information and no hassle with physical cards.
Common types of digital wallets
- PayPal
- Apple Pay®
- Cash App
- Google Pay™
- Samsung Pay®
- Venmo
- Zelle®
Benefits of digital wallets
Most of us have our phone on-hand 24/7. Instead of handling a bulky wallet or purse, you can simply wave or tap your phone at the payment terminal to complete transactions in seconds! Consider these 3 additional benefits of digital wallets:
Convenience
Digital wallets provide unmatched accessibility. Your mobile device stores all your credit cards and bank information, just a few taps away, for quick access. And with everything available in one place, including loyalty cards and travel documents, it’s easy to stay organized.
Speed
A digital wallet enables contactless payments for faster checkout. According to stripe.com, contactless payments can be up to 10x faster than other payment methods. Contactless payments use near-field communication (NFC) technology, which sends radio waves from the mobile device to the card reader to process transactions immediately.
Security
Electronic wallets have robust security measures in place to safeguard your financial information, such as tokenization and two-factor authentication, for extra layers of protection.
Are digital wallets safe?
Digital wallets commonly use a technology called tokenization. Tokenization is the process of replacing sensitive data, such as a credit card number, with a non-sensitive substitute, known as a token. The token is a randomized data string that has no essential value or meaning. For example, if a card number was 1234 5678 8765 4321, it could end up looking something like G67TR8GE27X. In the event of a data breach, tokenization protects your information.
Most virtual wallet providers also encourage two-factor authentication. Two-factor authentication requires two separate forms of identification to access something. The first factor is a password and the second commonly includes a code or a scan of your face or fingerprint.
Safety Tips for Using Digital Wallets
- Use strong, unique passwords.
- Enable multi-factor authentication to verify your identity.
- Put a password or lock pattern on your phone.
- Monitor credit cards and bank accounts for fraudulent charges.
Digital wallets have changed the game for electronic payments, providing unmatched convenience, enhanced security, and versatility. You can feel confident in digital payments with tokenization and additional security measures in place to protect your payment information. Take your pick of virtual wallet providers and enjoy a wave- or tap-to-pay on your next transaction!
First Federal debit cards can be stored in mobile wallets, such as Apple Pay, Google Pay, Samsung Pay, and other popular virtual wallets. Learn more about the benefits of virtual wallets.
