Digital Wallet use is on the rise, and here is some staggering data.
As of July 2023, there were 3.4 billion digital wallet users in 2022, growing to a projected 5.2 billion in 2026. An estimated 54% of e-commerce payments will be made via digital wallets by 2026. Almost half (49%) of global online transactions were made with a mobile wallet in 2022.
A digital wallet is an application on your mobile devices that stores credit cards, debit cards, gift cards, and even some event tickets on smartphones and smartwatches.
Digital wallets allow you to make quick, secure, and convenient payments with just a tap on a contactless card reader.
Digital wallets are more secure than physical cards because when you pay, your phone communicates with the terminal using near-field communication technology, which provides encryption and other protections when data is transferred.
Your credit card number is also replaced with a randomly generated digital ID, referred to as a token, which means your card number is not being transferred at the point of payment.
Although payments from a digital wallet are safer than using a physical card, you still need to take precautions in case your mobile device is lost or stolen.
While digital wallets are a more secure payment method, there are always some ways to boost the safety of your digital wallet—here are our tips:
- Keep your phone locked. One of the first steps is to enable a lock on your phone with a numerical/alphabetical password, a swipe pattern, or biometric authentication. Biometric passwords are the most powerful because they require a fingerprint or face scan to unlock your phone. If you choose to use a password, use a mix of letters, numbers, and symbols to make it more difficult for a thief to guess. If you choose a swipe combination, always make sure you enter your password confidentially as you can never be too sure who might be watching you.
- Make sure the digital wallet app you are using is from a trusted source. Most new smartphones will come with a digital wallet app preinstalled on the phone, such as Apple Pay, Google Wallet, Samsung Wallet, etc. If your phone does not come with a preinstalled digital wallet app and you’re interested in using a digital wallet, make sure you download an app from your phone’s app store that is created by a trusted brand.
- Don’t use public WiFi. Public Wi-Fi can be found in most restaurants, retail stores, shopping malls, and more. Although convenient, public WiFi is easy for thieves to hack, making your information easy to obtain. Cybercriminals can track your activity online, get into your accounts, and even see payment information.
If your mobile device is lost or stolen, make sure to immediately contact your financial institution and put a hold on your cards and account, just in case.
Taking a few extra steps to ensure the security of your digital wallet will give you extra peace of mind this holiday shopping season.
