What Are Digital e-Wallets?

As we move further away from cash and immerse ourselves in technology, digital e-wallets are becoming more and more popular. Having a digital wallet opens both you, and your customers, to a variety of other payment methods. But how can digital payments benefit you and your business? In this guide we will look at:

• What are digital e-wallets?
• How do you set up a digital e-wallet?
• Are digital e-wallets secure?
• How do digital e-wallets work?
• How can you benefit from a digital wallet?

What are digital e-wallets?

A digital e-wallet securely stores credit and debit card payment information in a wallet app on your mobile device. Rather than carrying a physical wallet or purse, you can download the mobile app for your bank account and upload debit card information, credit cards and loyalty cards into the app.

As well as storing payment information, digital wallets also allow you, and your customers, to store coupons and tickets. This makes travelling, shopping and days out so much more convenient as tickets, payment cards and coupons can be stored in a wallet mobile. That means you won’t need to carry multiple cards and tickets around and don’t need to worry about losing them throughout the day.

How do digital e-wallets work?

When making payments online or in store, it is often no longer necessary to take your physical bank cards or payment details everywhere you go. Digital wallets work by storing a digital version of your tickets or payment information on a mobile device. Your mobile wallet app stores all of your personal information, making it much more difficult for someone to steal your cards and spend your money.

How do you set up a digital e-wallet?

With Google Pay and Apple Pay, setting up your digital e-wallet is pretty straightforward. Either download or go to the Google or Apple Pay app and select the option to add a card. You will then need to manually enter your card details or scan your card to upload it to the app. 

Once you have checked all of your personal information is correct, you should then be able to transfer funds, make online payments and even contactless payments with ease. Gone are the days of needing to take all of your payment cards everywhere you go.

Are digital e-wallets secure?

It may surprise you to know that digital wallets are often more secure than physical ones. With authentication and data encryption, mobile wallets are often better at protecting users from fraud and theft because they don’t have the same malicious software as desktop systems. 

Many e-wallets require biometric authentication now which uses facial recognition or requires you to scan your fingerprint in order to make a payment. This makes it much more difficult for fraudulent activity to occur because your biometrics are personal to you. Whereas the magnetic stripe on the back of your debit or credit card is much more easy for someone else to read.

How can you benefit from a digital wallet?

Digital wallets allow you to make transactions and payments online without having your physical credit or debit card to hand. You can also make contactless payments from your mobile device when you are out shopping. Not only that, but you will be able to store digital coupons and tickets on your mobile app rather than carrying around paper copies and you won’t need to worry about losing them.

As a retailer, you will be able to get through queues of customers much quicker if people are using contactless payments. It will also allow your customers to store transportations on their mobile device after purchasing them in your store.