Five reasons to switch to a digital wallet

Digital wallets are a convenient and secure way to store your payment information. Here’s why you may wish to add one to your phone or watch.

If your bank and credit cards have lived safely in your back pocket for decades, making the switch to a digital wallet may not sound so appealing; however, there are many advantages to the newer way to pay, including enhanced security, convenience, and payment tracking.  

A digital wallet stores payment information securely on a connected device, such as your phone or watch. When you go to a shop or use an app to pay for something, the digital wallet brings up your card information for the transaction.  

Here are five reasons you may wish to consider moving to the newer technology.

1. Its secure

In an age of heightened financial fraud, it’s natural to be worried newer forms of payment technology could make you more vulnerable. However, that’s usually not the case with digital wallets.

The technology uses tokenisation to keep your information safe. In other words, your data is encoded in a way that makes it difficult for hackers to access.

Having said that, no payment technology is completely foolproof, so it’s still important to use strong passwords, keep an eye on your transactions, and try not to lose your phone.

2. It’s easier to track payments

With a digital wallet, you don’t have to log onto your home computer or wait for a bank statement to see what you (or someone else) have spent. A record is kept on your device that’s easily accessible at any time.

It means if you’re worried about a suspicious transaction, you can catch it quickly. The same goes if you think you’ve been overcharged.

3. It’s a one-stop shop

A digital wallet can hold many forms of currency, including credit cards, bank cards, gift cards and loyalty cards. It can also store travel and event tickets, which means you don’t have to worry about leaving anything behind – except for your phone or watch.

4. It’s lighter than a physical wallet

With a digital wallet, the days of heavy pockets are behind you. The wallet can store dozens of different passes and cards without any additional physical weight.

5. It simplifies travel

Many of us have travel horror stories, where a card has been stolen or snapped up by an ATM, a pin code hasn’t worked, or a payment method has been blocked. It can turn an otherwise relaxing holiday into an administrative nightmare.

A digital wallet protects against the above scenarios. The wallet recognises you overseas via a passcode or face/touch ID, which means you don’t have to worry about theft or being locked out of your account. As mentioned, there’s also an extra layer of protection to stop your accounts from being compromised.

While it may feel strange at first to let go of a physical wallet you’ve become accustomed to over decades, moving to a digital wallet may just simplify your financial life.