The progression in technology over the past 20 years has sent finance into a whole other world. We have gone from basic online banking to being able to pay with phones and smartwatches, as well as make payments using biometrics. The industry of ‘finetch’ was born from all of these advancements. Which created companies such as Revolut, PayPal, and Monzo. We are going to look at one particular area of fintech today and this is the subject of digital wallets.
They are extremely popular due to a mixture of safety, security, and time-saving benefits. Essentially, it allows you to make payments anywhere, whether this is online, through an app, or even in a shop, extremely quickly. They can be used online to deposit funds into a bingo casino, pay for vacations or to shop online at Amazon although the list of places that accept digital wallet payments is almost endless.
What is it?
A digital wallet, however, is not your bank account. Instead, it is software that links both your bank account and the merchant to whom you’re wanting to pay. When it comes to choosing a digital wallet, it’s no surprise that there are quite a few different choices. After all, the amount of innovation in this space is impressive and constant. There are certain criteria that you’re going to want to look at. For example, you have wallets that are categorised as ‘open’ and then you have others that are ‘semi open’. Some of the bigger names in the digital wallet space that you may have heard of probably include PayPal, Apple and Google Pay.
Contactless technology
Each of these digital wallets needs access to what is called ‘NFC’. This is the technology that allows your device to pay contactless at paypoints. Typically, these are saved on phones and most modern smartphones also have biometrics. This means that as long as you have your phone unlocked, either your fingerprint or your face can process the payment. And so the right wallet for you depends on what you want from it and what you’re using it for. For example, if you have an iPhone, it may be much easier to use Apple Pay; likewise, if you have an Android phone, it is easier to use Google Pay.
Safe and secure
And we touched upon at the start of this the safety benefits of digital wallets. Of course, when considering whether to download any type of financial app, people are going to be very hesitant, as they want their information to be safe. However, there is no need to be concerned with digital wallets. The technology they are built on uses only the most advanced forms of encryption. This means that your financial and personal information are kept safe at all times and are at no risk of being intercepted or stolen by any prying eyes online.
Quick and easy
It’s quick and easy to download a digital wallet, and you only have to link your bank card and account to it at the start. After that, you no longer have to worry about having to get your card out and enter your information each time you buy something online for example. And overall, it saves you so much time that can be spent doing other things in life and it makes the whole online experience a lot smoother and sleeker.
In Summary
We’re hoping that you now have a much clearer idea as to what digital wallets are and what you need to be looking for if you are considering getting one. They all share the same uses but each differs in their own way. And you will also want to double check that your phone has NFC technology on it and that your phone can also download the apps so as to avoid any disappointment.