Digital wallet are cashless payment systems that stores the user’s payment information and allows that them to make transactions through their mobile devices, without having to us a debit or credit card.
Read below to find out what are digital wallets.
How Does a Digital Wallet Work?
Digital wallets are designed to work in one of two ways. Generally it can be used as an online banking platform to send money, receive money, and make purchases via the internet.
The second way is to download a digital wallet app to a mobile device and then tap the phone on the card reader of select stores to pay for a purchase.
In order to process the payment, the system instantly withdraws the purchase amount from the bank account or card set when setting up the digital wallet.
Are Digital Wallets Safe To Use?
Digital wallets are a lot safer then most people think they are!
Although digital wallets are registered to your bank account, the merchant will not ever see that account number. The system generates a unique, random transaction number for purchases. Account information is encrypted and available only to people with a password.
Before using a digital wallet, take precautions to protect the information you have stored electronically.
Popular Digital Wallets
Below are several comparisons between several digital wallets:
- Apple Pay
- $0 to send or receive money
- Available on: iOS
- Google Pay
- $0 to send or receive money
- Available on: Android, iOS, desktop
- PayPal
- $0 for standard transfer money to bank account
- 1% of amount transferred for instant transfer
- $0 for payment funded by PayPal balance or linked bank account
- 9% of payment when funded by credit or debit card or PayPal credit
- 5% transaction fee for international payments
- Available on: Android, iOS, desktop
- Samsung Pay
- $0 to send or receive money
- Available on: Select Samsung devices
- Venmo
- $0 to send or receive money
- $0 for standard withdrawal
- 1% for instant withdrawal
- $2.50 to use out-of-network ATM
- 3% of payment funded by credit card
- Available on: Android, iOS, desktop
- Zelle
- $0 to send or receive money
- Available on: Android, iOS, through bank apps
Author’s Verdict
A digital wallet provides easy-to-use convenience. Take a look around, you can find a digital wallet that meets your needs!
Hopefully the above information helps you understand what digital wallets are.
Also be sure to check out our own lists of bank promotions and CD tables!
| PROMOTIONAL LINK | OFFER | REVIEW |
| HSBC Premier Checking Member FDIC | Up to $2,500 Cash | Review |
| Chase Private Client | $3,000 Cash | Review |
| U.S. Bank Business Checking | $900 Cash | Review |
| U.S. Bank Business Checking | $400 Cash | Review |
| Chase Business Complete Checking® | $300 Cash | Review |
| KeyBank Key Smart Checking® | $300 Cash | Review |
| Chase Total Checking® | $300 Cash | Review |
| Chase College CheckingSM | $100 Cash | Review |
| J.P. Morgan Self-Directed Investing | Up to $700 Cash | Review |
| Chase Secure BankingSM | $100 Cash | Review |
| SoFi Checking and Savings Account | $325 Cash | Review |
| Huntington Bank Unlimited Plus Business Checking | $1,000 Cash | Review |
| Huntington Bank Unlimited Business Checking | $400 Cash | Review |
| Huntington Bank Business Checking 100 | $100 Cash | Review |
| Fifth Third Bank Checking | $400 Cash | Review |
| Axos Basic Business Checking | $400 Cash | Review |
| Axos Business Interest Checking | $400 Cash | Review |
| Axos Bank Business Premium Savings | $375 Cash | Review |
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