Understanding Digital Wallets: Benefits and Security Measures
In the modern age, managing your finances is easier than ever thanks to digital banking. This innovative tool lets you keep your finances and payment information securely stored on your mobile devices, making banking a breeze. With so many features, it’s no wonder digital wallets are so popular. While this technology undoubtedly makes banking more convenient, it is important to remember that there are safety measures you should take to stay safe from potential threats. To help you better understand this technology, take a look at the following information about digital wallets and how to ensure your financial information is safe while using them.
What is a Digital Wallet?
Have you seen anyone pull out their phone to pay at a store, never opening their wallet once? That’s a digital wallet! Devices like smartphones and smartwatches can be equipped with a folder that contains your payment information like debit cards, credit cards, account information, and many other types of currency. This folder is securely stored on these devices, and allows you to pay at any retailer that accepts digital payment without ever taking out your wallet and handing the cashier a card. Activating them is different depending on which device you are using, but it is always simple and to use.
Enhanced Security
When we say a digital wallet eliminates the need for taking out your card, we mean at all. When you pay using a digital wallet, your card numbers, PIN, and security codes are never shown. All of your payment information is encrypted within the device, and requires multi-form authentication to access. When it comes to payment security, using a digital wallet is one of the best things you can do to keep your information entirely private.
Organization and Convenience
Another benefit of using a digital wallet is that you will not have to always carry your physical cards with you. All of your important cards and currencies will all be stored in one place, making it easy to keep them all safe. Your physical cards can be dropped, lost, or stolen, leading to fraudulent activity and even financial devastation if not caught and reported in time. While not all retailers accept digital payment, the number of them that do is constantly growing. Digital wallets do not only include credit or debit cards—you can also add insurance cards, boarding passes, and even concert tickets for easy access.
Monitor Your Finances and Use a Reputable Provider
Your digital wallet is a great way to keep your financial information safe out in the world, but it is still important that you monitor it and check for any fraudulent activity. Keep an eye on your bank statements to ensure purchases on all of your cards are authentic and protected. Regularly update your digital wallet with any new information or cards, including when one becomes invalid. In addition to information, it is important to keep the app housing your digital wallet updated so it always has the latest security features. Remember that you should only use a digital wallet from a trusted and secure provider. For example, ApplePay, Google Wallet, and Zelle are great options for this technology, and all use some form of multi-factor authentication.
Using a digital wallet is one of the best ways to keep your financial information safe in the 21st century. To help you stay up to date in banking technology, 1st Advantage is proud to offer you many different digital banking options to suit your needs, one of which is a digital debit card. When you set up a checking account with us, we make it easy to seamlessly connect your account to your digital wallet available through your phone and smart watch. When you go to make purchases, you can leave your physical debit card in your wallet, keeping your account information secure. This is just one of our secure, convenient online banking features. We also offer options like mobile deposit, online bill paying, and more for you and your business. Online baking is part of our dedication to bringing you the best financial options and newest technology to keep you safe and help you thrive. Check here for information about online banking with 1st Advantage. Member FDIC and Equal Housing Lender