What is a digital wallet, and how does one make it easy to pay securely using your smartphone, smartwatch, or other device? We explain how digital wallets offer a safe and simple way to make purchases in stores and online.
If you’ve ever tapped your phone at a checkout terminal to pay for a purchase, chances are you’ve used a digital wallet. Digital wallets are gaining popularity due to their convenience, ease-of-use, and security. Whether you’re shopping online, grabbing a cup of coffee, or paying for groceries, a digital wallet can help you pay quickly without reaching for your physical credit card.
Want to get on board? Let’s talk about how digital wallets work and how you can add your Lake Region Bank cards to your digital wallet.
What is a digital wallet?
A digital wallet is an app on your smartphone, tablet, smartwatch, or other device that securely stores your payment information. You can load your credit cards, debit card, gift cards, and loyalty cards into your digital wallet so you can use your device to make purchases in stores, online, and within other apps.
If you’ve heard people talking about the following apps (or seen signage about them at checkout terminals), then you’ve heard about digital wallets:
- Apple Pay®
- Google Pay™
- Samsung Wallet™
- PayPal®
- Venmo®
How do digital wallets work?
When you add a card to your digital wallet, the app replaces your actual card number with a unique digital code called a token. When you make a purchase with your digital wallet, the app shares the token (rather than your actual card number) with the merchant. This helps reduce the risk of your card information being stolen during a transaction.
You can set up your digital wallet to require enhanced security protections, including face recognition, fingerprint authorization, device passcodes, or multifactor authentication. Combined with the tokenization of your card number, a digital wallet is one of the safest ways to make purchases.
Why do people like digital wallets?
Once you try a digital wallet, you may find your physical wallet stays in your pocket or purse more often. We’ve found customers identify five main benefits of using a digital wallet.
Convenience
Whip out your phone, open your wallet app, and tap to make a purchase. Using a digital wallet in a store is that easy. Digital purchases are even faster, as you don’t need to enter your credit card information for each purchase. Digital wallets mean you don’t need to haul all your cards around with you or hunt them down when you’re making purchases at your computer at home.
Speed
Digital wallet transactions are fast, with most purchases completed in seconds. If you’re often in a rush, a digital wallet can be a timesaver.
Security
Don’t assume that because digital wallets are convenient and speedy that they aren’t safe. Digital wallets use encryption, tokenization, and the device-based security features we discussed above to protect your financial information. Digital wallet purchases are protected by the same fraud measures as your physical card.
Reduced Physical Contact
Don’t want to be out touching payment terminals or your crusty credit card? Want to avoid passing your card to a cashier? A digital wallets makes it easy to reduce your physical contact.
Easy Online Shopping
Many online stores and apps allow you to check out with your digital wallet. This eliminates the need to manually enter your card number every time you may a purchase. Just click on your wallet icon, complete the security step, and you’re done.
How do I set up Apple Pay?
To set up Apple Pay, follow these steps:
- Open the Wallet app on your iPhone.
- Tap the “+” symbol.
- Add your Lake Region Bank debit or credit card.
- Follow the verification instructions.
How do I set up Google Pay?
To set up Google Pay, follow these steps:
- Download or open the Google Wallet app.
- Tap “Add to Wallet.”
- Enter your Lake Region Bank debit or credit card.
- Complete the verification process.
How do I pay with a digital wallet?
You don’t need to be nervous about using your digital wallet at the grocery store or other physical retail store. Here’s what to do:
- Look for the contactless payment symbol at checkout. It looks like a sideways Wi-Fi signal icon and is often enclosed in a circle. It may have a credit card icon or a hand holding a card, too.
- Unlock your device.
- Open your digital wallet.
- Hold your device near the payment terminal.
- Authenticate with Face ID, fingerprint, or passcode if prompted.
- Wait for the confirmation message.
The entire process usually takes just a few seconds.
How do I use my digital wallet safely?
Digital wallets are highly secure. But with all financial transactions, you need to take care that you are protecting your data. Always use a passcode, fingerprint authentication, or facial recognition on your phone. Keep device software and apps updated for the latest cybersecurity protection. Monitor your financial accounts regularly for unexpected activity. Beware of scams that ask you share verification codes, passwords, or banking information.
Once you’ve set up your digital wallet, you may find that you’re reaching for your phone to make purchases more often than not. For additional support adding your Lake Region Bank cards to your digital wallet, get in touch with our banking team today.
Digital Wallet FAQs
What is a digital wallet?
A digital wallet is an app that securely stores your payment cards, gift cards, and other payment information so you can make purchases using your phone, tablet, smartwatch, or other device.
Are digital wallets safe to use?
Yes. Digital wallets use security features such as tokenization, encryption, facial recognition, fingerprint authentication, and one-time verification methods to help protect your financial information.
Can I add my Lake Region Bank debit or credit card to a digital wallet?
Yes. Lake Region Bank debit and credit cards can be added to popular digital wallets such as Apple Pay and Google Pay by following the setup and verification process within the app.
Where can I use a digital wallet?
You can use a digital wallet anywhere contactless payments are accepted, as well as on many websites and mobile apps that support digital wallet checkout options.
