Also called an e-wallet, it’s the equivalent of a real-world wallet that securely stores your money, payment information, passwords, and even coupons. A digital wallet has all your account information and can even store your ID cards and most everything else you’d carry in your purse or pocket.

In fact, Apple Pay, Google Pay, PayPal, and Samsung Pay are all well-known versions of digital wallets. They can come in many forms, but these days they typically include a smartphone app.

Are Digital Wallets Secure?

More secure than real-life wallets! Flyp uses military-grade AES-256 Advanced Encryption Standard and, as an FDIC-insured bank, uses the highest security protocols available. Also, federal law limits your liability in most cases of bank theft, whereas if cash is stolen, it’s gone.

Smart hackers tend to avoid attacking bank accounts since money transfers are far more traceable. E-wallets also never send your passwords or PIN numbers to merchants, instead using top-security one-time passwords for each transaction.

How Does a Digital Wallet Work?

The e-wallet provider stores the data on dedicated, secure servers once it’s set up, so access is simple for the user. If you’re doing something like shopping online, virtually every merchant/store should accept your payment. In fact, over 71% of point-of-sale merchants now accept this form of payment, and most of the rest expect to soon.

Often, using your e-wallet is done through Near-field communication or NFC. This makes payment as easy as waving your smartphone.

What Are the Benefits of a Digital Wallet?

A digital wallet contains all the payment forms (except cash) that you’ll find in your real wallet. Additionally, digital wallets provide major convenience and added security that you don’t get with a traditional wallet. Also, having a digital wallet allows you to keep credit cards, debit cards, and even loyalty cards centralized. Plus, since they are tied directly to your bank account, you can use them like a checking account.

Which Digital Wallet Is Best For You?

Choose one built by an insured bank with no-to-low fees, such as Flyp. Our goal is to build a banking solution that works with you, for you, and not against you. For instance, with our debit card program, we make our money by taking a cut of the merchant fee instead of charging you for monthly maintenance fees.

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