A list of the versatile features and advantages of using a digital wallet to complete purchases, travel and more.
Digital wallets are the new normal for consumers across the world. According to a study from Juniper Research, 60% of the world’s population will use a digital wallet by 2026. Its ease of use and convenience makes it a simple addition to a consumer’s everyday life. All it takes is a simple tap of the phone to pay for your morning coffee.
Convenient, contactless payments are just one advantage of digital wallets. Digital wallets are versatile tools with features and technology designed to upgrade your everyday purchases. We’ll look in-depth at the different features and advantages of digital wallets and what makes them an ideal choice for the ordinary consumer.
What are digital wallets?
Digital wallets store all your payment information in one easy-to-access place on your phone or computer. In addition to credit and debit cards, digital wallets also store plane tickets, concert tickets, hotel reservations, public transit cards, gift cards, and coupons.
Digital wallets are considered safer than using a credit card because each transaction produces its own token number. Tokenization prevents your account information from being shared with the seller, so your credit card is safe from hackers. Digital wallets also require a form of identification to make a payment, like a PIN, Face ID, thumbprint, or passcode.
Choosing a digital wallet may depend on what type of phone you use and your app preference. For example, an iPhone will automatically come with Apple Pay pre-downloaded, and an Android Phone will have Samsung Wallet. However, you may prefer to use Venmo, PayPal, Google Pay, or other digital wallet apps. With so many incredible features, digital wallets are the future of all consumer transactions.
Versatile features and advantages of digital wallets
“Add to wallet” feature
Many phones come with a digital wallet app pre-downloaded to your phone. This feature makes it incredibly easy to store all your important tickets and documents in one handy spot. Many companies automatically offer the “add to wallet” option for your concert and plane tickets. You’ll no longer have to worry about printing out your tickets and important documents, or searching through your email to find them.
Contactless payments
Digital wallets make it easy to be on the go. A digital wallet frees up space in your physical wallet and condenses your debit and credit cards into one app. No more holding up the line fumbling for your wallet, instead, just simply tap your phone to complete the purchase.
Online shopping
It’s never been easier to go online shopping with a digital wallet. With a digital wallet, all your information is pre-saved, including your credit card number and billing address. So, there are fewer steps to get that package en route to your home. However, the convenience and fast checkout process can be a downside if you’re prone to impulse buying. So, be careful!
Add your transportation pass
Digital wallets do more than just store credit and debit cards. You can also download your travel and transportation cards to your digital wallet, simplifying your morning commute. Simply pull up your bus, rail or other public transportation card on your digital wallet and tap it on the turnstile. Your digital wallet app will let you know if your transportation card is available to store and use.
Rideshares
You can add your digital wallet as a payment option when ordering an Uber or Lyft ride. Simply go into your rideshare app and select digital wallet as a payment option. Then, whenever you request a ride, it’ll ask for authentication through Face ID or a passcode.
Entertainment
One of the best versatile features of a digital wallet is the ability to add concert or event tickets to your wallet. In today’s modern world, many concert venues require a digital ticket anyway. When you go to enter the venue, show your phone and the ticket barcode, and the attendant will scan it with ease. No more waiting for your old printer to boot up and wasting paper, just simply download the tickets to your digital wallet.
Credit card perks
Using a digital wallet means you can access your new credit card immediately. When you apply for a new credit card, you usually have to wait for the physical card in the mail. Many companies allow you to add your credit card number to your digital wallet immediately after approval, so you can automatically start earning rewards on your new card.
Some credit card issuers even offer special incentives if you upload your card to your digital wallet. For example, U.S. Bank offers a card that earns one point per dollar on purchases made with your digital wallet.
Track your expenses
Using a digital wallet makes it easy to keep track of your spending patterns and manage your finances better. For example, Google Pay gives users insight into where they spend the most money. This feature can help you create a more accurate budget for yourself.
Rewards earned through the digital wallet
Many digital wallets allow consumers to earn additional rewards through their apps. In particular, Samsung Wallet and Google Pay offer users the chance to earn rewards when shopping with select merchants.
Send and receive money transfers with a digital wallet
To make it easier to send money to friends and family, Western Union lets users in many countries send and receive money into their personal digital wallets. Whether your family needs help paying a utility bill or you’re gifting dinner to a friend, your loved one can receive the transfer directly into their digital wallet. Your loved one will also conveniently receive your digital wallet transfer in their local currency. Check out Western Union’s website to see if your country accepts a digital wallet transfer, or download the app to send your transfer today.
The future of digital wallets: the super wallet
As digital wallets become increasingly popular, some banks and finance companies are interested in creating “super wallets.” Finance companies hope to add even more features to the digital wallet app, like purchasing stocks, loans, and insurance. In Asia, some digital wallets are starting to offer in-app hotel booking, food delivery, and other everyday functions. Some U.S. digital wallets like PayPal even offer the option to purchase crypto.
Crypto wallets
Crypto wallets are a bit different from digital wallets. The primary purpose of a crypto wallet is to purchase and hold onto crypto. If a merchant accepts crypto as a payment method, you can use your crypto wallet to make a purchase.
In comparison, all digital wallets are attached to your bank account, so they are insured on some level by the FDIC. However, cryptocurrency is still unsecured and unregulated, so you may have trouble retrieving your crypto if your account gets hacked.
As digital wallet use is on the rise, they’ll become essential to a consumer’s in-store and online shopping experience. You can see how versatile they already are. So, try a few out and see what suits you best. With such a range of features available, you may only need just one.
