Are Digital Wallets Safe?

 

Using a digital wallet can be safe if certain precautions are taken and if the eWallet provider implements robust security measures. It's essential to take specific precautions to ensure the security of your funds and personal information. In short, digital wallets are safe, offering multiple layers of protection for every transaction.

While e-Wallets can offer convenience and efficiency in managing finances, it's essential to practice good security habits and choose reputable providers with a track record of prioritizing user security and privacy. Taking these precautions can significantly reduce the risks associated with using digital wallets.

 

At the first level, each transaction made using a digital wallet is protected through a technology called tokenization. This process encodes your debit and credit card details so the numbers are never shared with a merchant. So, if a retailer gets hacked, your credit or debit card number won't be compromised. This saves you the hassle of having to cancel your cards and get new account numbers in the event of a data breach.

 

At the next level, digital wallets have an additional layer of payment permission required when you want to make a transaction. Some wallets use biometric data like a fingerprint or facial recognition to confirm it's really you making the transaction.

 

Finally, digital wallet apps are designed to only interact with specific apps on your phone. This isolation can prevent malware that may affect other apps on your phone from infiltrating your wallet and stealing your financial information.

 

 

Digital wallet PROS

 

Safety: Digital wallets protect your account information, making it difficult for fraudsters to access your sensitive financial information.

 

Convenience: Digital wallets give you access to multiple ways to pay with the touch of a button.

 

No more "I forgot my wallet": Whether your bag is in the car or your debit card is in your other pants, digital wallets make it possible to pay if you have your phone.

 

 

Digital wallet CONS

 

Merchant availability: Your ability to use a digital wallet depends on whether a retailer offers contactless payment methods as an option.

 

User frustrations: Whether you're wearing gloves, glasses or a mask, your phone's stringent biometric ID verification features could slow your payment efforts.

 

You need juice: If your battery dies, so does your ability to use your digital wallet.

 

All in all, digital wallets tend to have more pros than cons - especially if you live in an urban or suburban area where more retailers accept contactless payments.

 

 

The best digital wallet apps right now

 

If you're considering making the leap to digital payments, you'll likely want to consider one of the top three phone-sponsored digital wallet apps: Apple Pay (iPhone devices), Google Pay (Android devices) and Samsung Pay.

 

According to Forbes, Google Pay is the most popular digital wallet, followed by Apple Pay and Samsung Pay. All of these apps empower you to store multiple cards, along with additional data like concert or event tickets, airline boarding passes and more. They all also offer multi-layered security features to keep your payment information secure.

 

The one you choose will likely have a lot to do with your type of phone. The good news is that no matter which you choose, they're all accepted wherever you see the "contactless" symbol at checkout or on the payment terminal.

 

 

Ways to make your digital wallet safer

 

While digital wallets are inherently safe, you can take precautions to keep your payment information and device secure. The following four S's can help set you up for security and mobile banking success.

 

• Secure your phone and apps - Always lock your phone and set up separate passwords for your digital wallet and mobile banking apps. If you use a swipe passcode, be discreet to prevent prying eyes from swiping your swipe.

 

• Skip the public Wi-Fi - Only use secured networks to access your mobile banking apps.

 

• Set up extra security - Whether it's a locator app or a function that lets you wipe your device if it's stolen or misplaced, use your phone's built-in security features.

 

• Stay on top of your accounts - Set up transaction alerts and regularly review your account. These two steps can catch fraudulent charges and shut down fraudsters in a flash.

 

 

Digital wallets in a nutshell

 

So, what is a digital wallet? It's a mobile technology that encrypts your debit and credit card payment information to make every transaction a faster and more secure experience. It's the perfect partner to your mobile banking app. No matter which platform you use, it always means your debit or credit card is always at the ready.