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Updated
Described as the future of payments, digital wallets let you keep all of your cards and bank accounts on your phone. But not all digital wallets offer the same features, so the best choice will depend on how you want to use it.
A digital wallet — or mobile wallet — works like an electronic version of your physical wallet. It allows you to make electronic payments with your digital device while hiding your financial information to keep it safe.
Most digital wallets work through apps on your phone. The app authenticates your purchases through encryption and digital certificates to secure the payment processes from the consumer to the merchant.
Most payments will use NFC, a technology that allows radio frequencies to communicate with each other.
Digital wallets | Compatibility | Cards | Payments | Features |
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Apple Pay |
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Google Pay |
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Masterpass |
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Paypal |
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Samsung Pay |
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Stocard |
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Visa Checkout |
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New wallets are constantly being released, but there’s a handful of options that are currently dominating the market.
You can use Apple Pay in stores by simply holding your iPhone or Apple watch near the card reader and placing your finger on the Touch ID or using the Face ID feature. However, its main functionality really shines online with the Safari browser, where you can buy with any Apple device without needing to create a website account or give away any personal information. Your card number is not stored on your device or the Apple servers, letting you shop with added security.
With the Google Pay, you can make purchases online or in person using your phone. Like Apple Pay, it’s available anywhere you see the contactless payment symbol. Plus, Google Pay lets you add loyalty cards to your digital wallet so you can rack up points when you shop.
An app for bargain hunters and those who want to become one. Stocard lets you carry loyalty cards in your smartphone or smartwatch, free of charge and without any registration required. Just download the app, spend a few seconds adding any existing loyalty cards to your Stocard wallet, and you can carry the discounts with you wherever you go. It’s available on both the Apple App Store and Google Play.
PayPal is one of the most popular ways to buy items online. You can link it to a debit card, credit card or bank account and use it at online stores all over the world. But if you want to use PayPal in stores, you’ll need to use Google Pay.
Offered by Mastercard, Masterpass stores your financial information and shipping information so that you can check out quickly when shopping online. It works with any card or bank account, not just Mastercards, and is available wherever you see the Masterpass logo online.
Like PayPal, Visa Checkout makes online payments easy when you shop online whether you’re using a computer, tablet or mobile phone. You can pay on any website where Visa Checkout is accepted without re-entering your credit card information again and again. But it doesn’t currently work in stores — just online.
Another popular choice, Samsung Pay lets you pay online, in apps or in person using your Samsung device. It works a lot like Apple Pay or Google Pay, and uses your fingerprint, PIN number or facial ID to verify your identity and keep your financial information safe.
Some banks have their own digital wallets intended to work seamlessly with the accounts and cards offered. For example, Chase bank offers Chase Pay and Citi offers Citi Pay Masterpass. Wells Fargo previously offered the Wells Fargo wallet, but the app is being discontinued.
Common terms you’ll come across when comparing digital wallets include:
Each wallet will have different features, and some may be more useful than others. Common uses of mobile wallets include:
Yes, you can use a cardless ATM to get cash using your mobile wallet and your smartphone. But the technology is relatively new, which means that you won’t be able to get cash from all ATMs — you’ll want to look for a machine with the contactless symbol.
For more information, read our guide to cardless ATMs.
When comparing wallets, factor in:
Digital wallets are fast, simple and secure — which is probably why they’re quickly becoming popular. Compare options to find the wallet that’s right for you. And to get the most out of it, compare bank accounts to find one that works seamlessly with the wallet you want.
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