Digital wallets are here to stay. In 2020, 2.6 billion people used digital wallets globally, with that number expected to swell to 4.4 billion by 2025. In fact, digital transactions account for nearly 30% of all purchases in North America. If your business relies entirely on physical credit cards, cash, or cheques, there’s never been a better time to update your payment solution.
What is a digital wallet?
A digital wallet is an online payment tool with no physical card required. Digital wallets usually live on a device, an application, or software incorporated into smartphones to ensure they’re easily accessible. There are a couple of subtypes of digital wallets: Mobile wallets are limited to smartphone devices, while e-wallets can be used on a larger selection of devices, such as laptops and desktop computers.
Digital wallets hold digital cards that can be used in place of the plastic ones that live in your physical wallet. They are fully hosted and stored virtually.
Benefits of going digital
- Fraudprotection. Digital wallets are encrypted and are equipped with anti-fraud measures. Card numbers are not transmitted or saved at the point of sale, and each transaction gets a random unique code. These features make fraudulent activity on a digital card difficult.
- Speed. Using a smartphone or smartwatch to make payments is a seamless and quick process. Users do not need to take out their cards or hand them over to someone, punch in numbers, or worry about paper receipts. When using a mobile wallet, you simply tap the device against the payment portal and wait to see a confirmation message appear on both your mobile device and the payment terminal. Done.
- Digital receipts. With digital wallets, you see up-to-date information as the transaction occurs, without having to log in to your credit card account or wait for a statement at the end of the month. This allows for easy tracking and fund balance information. Also handy: It’s often possible to do away with paper receipts as digital wallets track specific details like merchant, date, and the amount spent. Digital transactions will pop up as a notification on the device, providing all the necessary information.
Making the switch
Making the transition from physical cards to a digital wallet is straightforward and simple. If you’re a business, all you need is a point of sale system and card processor that accepts mobile payments. For most mobile users, you can add digital cards to the Apple Wallet app*, Google Pay app*, or Samsung Pay app* on your phone.
Digital cards allow for a safer and faster purchasing process with excellent protection against fraud. They also give users peace of mind with up-to-date, instant notifications for every transaction.
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