It is faster and more efficient than ever to make digital payments. A digital wallet is one of those methods, and it can allow you to safely make a purchase with many of the same devices you use for your online activity. That means you could make a payment from your phone, purchase something from your tablet while watching a TV show, and even use your laptop as you work from your desk or lounge on your deck.

What is a Digital Wallet?

Many people use various devices to shop, pay bills, and manage their money online. That includes everything from your laptop to your smartwatch and, of course, mobile phones. Using a digital wallet requires just a few taps or clicks, and you typically do not need to have your physical credit card or debit card on hand to handle the transactions. At the same time, there's ample security in place to minimize the risk that you could suffer a breach.

How Do They Work?

Digital wallets are like an electronic version of a traditional leather wallet. You can store credit card information within them, allowing that information to remain accessible whenever you need to make a purchase. They also can hold loyalty cards from merchants you work with or virtual items you purchase, such as tickets to a game or concert. You store the cards you want to have available to you across all of your connected digital tools, such as your smartphone, tablet, smartwatch, and computer. When it comes time to make a purchase, you can access your digital wallet for that purchase.

Examples of Digital Wallets

There are a lot of digital wallets. Each is a bit different, but most can hold several credit or debit cards. That is, you do not generally need to have more than one. Choose what works for your needs. Often, people choose the type of digital wallet already built into their electronic devices or those on platforms they prefer to use. Here are a few examples of these accounts:

• Apple Pay: One of the most common for Apple iPhone users, Apple Pay, is a simple way to access funding for your needs when you are using any of your Apple devices or accounts.
• Google Pay: For those that use Google products, including the Chrome browser, Google Pay is an excellent choice. It is highly versatile and allows you to quickly pay and manage your money.
• Garmin Pay: If you own a Garmin watch or other device, you can set up a digital wallet. Doing so allows you to use your smartwatch to make payments while you are on the go, often with a tap-and-go payment style. It is highly versatile and easy to use.
• Fitbit Pay: Much like the Garmin version, you can create a digital wallet using your Fitbit tools. This allows you to use your Fitbit exercise tracker or watch to make payments directly on the device or when you are out on a run and need to stop for a drink.
• Zelle: Many people appreciate the ease of using Zelle. This digital wallet differs from others because it allows you to send and receive money from friends and others around the country.
• Venmo: Venmo is a type of digital tool that allows you to send money to people by withdrawing it directly from a linked card or your bank account. You can also receive Venmo funds from others. The process provides real-time results.
• Samsung Pay: This digital wallet links to all of your Samsung devices. That could include your phone or smartwatch, for example. You can use it for online or in-person purchases.

Digital Wallet Storage Capabilities

One of the most common questions is how a digital wallet can be used beyond just making payments. While each one is a bit different in terms of how it works, there are many simple and effective ways to use it. Digital wallets can help you keep many important digital documents organized and easily accessible. That means that if you are out and need to access the document for some reason, you can easily do so from your linked device.

Here's what digital wallets may be able to hold for you:

• Credit card information: They can hold all of your credit card account information so that you can make a purchase.
• Hotel reservations: Store the reservations for your hotel stay in your digital wallet so you can pull it up when you arrive and need that information. There's no need to bring paper documents with you.
• Coupons: Some digital wallets will store your digital coupons for you. You can then apply them to purchases you make online or in person.
• Concert and game tickets: You can use your digital wallet as a way to store all of your tickets to various events you plan to attend. You can display the bar code or ticket information when you arrive to gain access.
• Boarding passes: For those who travel frequently, this is a simple way to keep all of your boarding pass information organized and within reach as you head to the plane or get ready to jump on a train.
• Loyalty cards: Whether from a specialty store or the local grocery store and gas station, you can use your digital wallet to hold your loyalty account information.
• Gift cards: Many digital wallets allow you to hold your digital gift cards on them. That means it is a fast and simple process when you visit the store or want to use them online.

Digital Wallet Safety

While all of these features may sound great, you may be concerned about the safety of digital wallets. Generally speaking, they are safer than carrying cash and often just as safe, or better, than using credit cards. That's because a 16-digit number is used to encrypt your information, and no one can access that information without the security information you provide.

Digital Wallet Pros and Cons

There are a lot of benefits to using digital walls, including:

• They are super convenient to use even when you are on the go and don't want to carry your physical cards with you.
• They are fast to use, especially when making payments online, and you don't want to input all of your credit card information.
• They are very secure. The methods used to protect this sensitive information can help to minimize any risk to you when processing transactions.

There could be a few disadvantages to using them:

• You will have to set them up, which can be cumbersome if you are loading numerous accounts on your accounts.
• Not all retailers accept this form of payment. Though more are transitioning to digital payments, not all do for in-person transactions.
• Some apps have charges for using these types of payment options. Be sure you know about them before you use them.

Digital wallets are a valuable investment that many people are moving towards. Consider the wide range of options available on the devices you use.