What is a digital wallet?

How often do you pay in physical cash? With cash spending on the decrease, it makes sense that the world is moving towards more digital ways to manage and move money. We cover what a digital wallet is and the many ways you can use it to spend smarter.

Millions of people all over the world use a form of digital wallet, through PayPal, Apple Pay, Google Pay and Venmo. It’s quite rare to come across someone who doesn’t have at least one digital wallet, even if they don’t realise they have one.

What is a digital wallet?

A digital wallet, commonly known as an e-wallet, is a third party app where you can store your payment details, carry out transactions and store money.

As many people have money spread across different accounts, remembering passwords and jumping between apps or websites can get really annoying. With a digital wallet, it’s all managed in one place, with one password.

Why should I get a digital wallet?

If you’re trying to stay “off grid”, living on the outskirts of society, paying for goods and services with physical cash, then a digital wallet isn’t for you. If you’re in the other 99.9 percent of individuals, then there is a benefit to getting yourself one.

Access

Ever been stuck at the ATM behind someone checking their balance on several cards? It’s so much easier to log on to an app and check it, without having to visit a cash machine.

Speed

Let’s be honest, filling out a long form with payment and billing details makes you wonder if the purchase is even worth the effort – it can switch off a quarter of people.

When making a purchase online, let your digital wallet do the work for you. One of the benefits of an e-wallet friendly site is that you can log in when you get to the checkout and your details, which are stored in the wallet, will autofill on the page. Easy!

Privacy

If you provide goods or services under a pseudonym, a digital wallet is a great way for your customers to pay you without getting hold of your personal information. You can set up an email account and a wallet username under any name you choose, providing some peace of mind if you wish to maintain a level of anonymity.

How safe are digital wallets?

It’s natural to be hesitant about storing your details in one place. However digital wallets are like a bank vault. All of the information stored is encrypted, meaning that people can’t just download your data and they certainly can’t access it. Even the people who set up the wallet can’t access it – the data is yours, and yours alone.

Using a digital wallet also adds an extra layer of security to any online transactions. Paying through your wallet means that the seller never comes into contact with your actual bank account details, so you don’t have to worry about entering your debit card details into a site ever again.

Vox Money doesn’t offer a digital wallet, however a prepaid card may be right for you! Sign up for a Vox Money account today.