A mobile wallet, sometimes called an e-wallet, digital wallet, or virtual wallet is a digital version of your financial accounts made easily accessible via computer, smartphone or smart device. Mobile wallets provide a convenient, safer way to pay. Your phone can carry your debit or credit cards so you don’t have to.

How To Pick A Mobile Wallet

To get started with a mobile wallet, first decide which one you want to use, a decision that is often influenced by the mobile operating system you already use. Check Apple Pay, Google Pay or Samsung Pay to see if your device is compatible. 

How Do They Work?

If you want to utilize a mobile wallet, you’ll need to enter your card information into the app or site of your choice. Your information will then be encrypted and you will only be able to use the wallet when you unlock your device and authorize the wallet’s use.

To make a mobile payment, you simply have to authorize the mobile wallet and hold it close enough to the card reader so that your information can be transmitted. Not all retailers accept mobile payments. Look for the contactless payment indicator on the retailer’s point-of-sale system or card reader. The symbol looks like a sideways Wi-Fi icon.

Are Mobile Wallets Safe?

A common hesitation with mobile wallets is the concern over safety and security. What happens if your phone gets stolen? Can hackers easily steal your information? Will you be putting your finances at risk?

Mobile wallets are actually more secure than physical cards, because mobile payments are heavily encrypted and tokenized, meaning that none of your actual card or account numbers are stored within the mobile wallet.

Ultimately, your information is useless and unreadable to fraudsters when encryption and tokenization are used together. If a store or company ever experience a cyberattack, your numbers and private information won’t get stolen!

Not only is your information more secure thanks to that technology, but also through user verification. This added layer of security is usually done by fingerprint, facial recognition or PIN.

What Else Can Mobile Wallets Do?

Not only are mobile wallets great for simplifying payments, they are also a great place to keep other important documents organized and easily accessible.

Here’s some of what you can store in a digital wallet:

• Credit or debit cards
• Insurance cards
• Boarding passes
• Hotel reservations
• Concert & Sporting event tickets
• Gift cards
• Coupons
• Loyalty rewards cards

Send and Receive Money

Whether you’re picking up the check or paying back a friend, Apple Pay, Google Pay and Samsung Pay facilitate sending and receiving money with a bank account, debit card or the balance in the app’s account.