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What Is a Digital Wallet?

October 15, 2021

by Flyp

Also called an e-wallet, it’s a wallet that securely stores your:

  • Money
  • Cryptocurrency
  • Payment information
  • Passwords
  • Coupons
  • A digital wallet has all your account information and can even store your ID cards and the items you’d carry in your purse or pocket,  typically on an internet-connected device.

    In fact, Apple Pay, Google Pay, PayPal, and Samsung Pay are all well-known versions of digital wallets. They can come in many forms, but these days they typically include a smartphone app.

    What Are the Benefits of a Digital Wallet?

    Easier Payments

    A digital wallet contains all the payment forms (except cash) that you’ll find in your real wallet. Additionally, digital wallets provide major convenience and added security that you don’t get with a traditional wallet.

    Convenience

    Also, having a digital wallet allows you to keep credit cards, debit cards and even loyalty cards all in one secure place. Plus, since they are tied directly to your bank account, you can use it like a checking account.

    Are Digital Wallets Secure?

    Encryption

    More secure than real-life wallets! Flyp uses military-grade encryption, as an FDIC-insured bank, uses the highest security protocols available. Also, federal law limits your liability in most cases of bank theft, whereas if cash is stolen, it’s gone.

    Password Technology

    Smart hackers tend to avoid attacking bank accounts, since the money transfers are far more traceable. E-wallets also never send your passwords or PIN numbers to merchants, instead using top-security one-time passwords for each transaction.

    How Does a Digital Wallet Work?

    The e-wallet provider stores the data on dedicated, secure servers. As long as you can login to your digital wallet’s dedicated app, it’s ready to use.  Virtually every merchant/store can accept digital payments, so shopping is easy and secure. In fact, over 71% of point-of-sale merchants  now accept this form of payment, and most of the rest expect to soon.

    Often, using your e-wallet is done through Near-field communication (NFC). This makes payment as easy as waving your smartphone.

    Which Digital Wallet Should I Use?

    Choose one built by an insured bank with no fees, such as Flyp. We promise to never have a single in-network fee – period. We make our money taking a cut of the merchant fee, instead of charging you.