In 2020, 294.15 million Americans used and owned a smartphone (Statista, 2021), and that number is continuously growing. Chances are, if you're one of the millions of Americans that own a smartphone, you have access to a digital wallet. But what is a digital wallet? A digital wallet is a technology-based system that securely stores user payment information and passwords. In other words, a digital wallet is so much more than a way to pay for stuff online- though it's great for that, too. After entering your information just once, a digital wallet is the fastest method of making in-store purchases. Leave your wallet in your pocket, or at home, and just tap your phone toward the point of sale for a contactless transaction. Another great benefit of a digital wallet is that you can use a variety of apps to pay trusted contacts. An example of a digital wallet could be Applepay, GooglePay, and Venmo.
With technology constantly advancing, there are many reasons and benefits to using a digital wallet, possibly even replacing a traditional wallet. Here are 5 reasons to get you started.
1. Convenience
One of the biggest reasons people use their digital wallet is for the convenience! Whether you shop online, in store or in an app, your digital wallet stores your information for easy checkout. Most digital wallets also let you transfer and request money from friends making it easier than ever to split a bill.
2. More Secure
Digital wallets use one of the most secure payment methods available: tokenization. Your information is encoded and each transaction you make using your digital wallet creates a unique, one-time code, reducing security risks. If you drop your physical wallet, your cards and information can easily be stolen, compared to digital wallets that require two-factor authentication or Face ID. Meaning, if you drop or lose your phone, people will have a more difficult time accessing your phone, if even possible. When making a purchase, authorization can be required in the digital wallet's settings, requiring a unique passcode, Touch ID, or Face ID to make a purchase. Lastly, when you enter your Arbor Financial debit or credit card into your digital wallet, it is fully linked to your Arbor account. So, you’ll be able to see payments and continue monitoring your card through mobile banking and your card statements.
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3. Allows you to be More Organized
Have you ever struggled to find a specific card or coupon in your physical wallet? Digital wallets allow you to organize and carry less by saving loyalty cards, gift cards, coupons, travel passes (plane tickets, hotel reservations, train passes, etc.), and even your student ID to your phone. Consolidating everything in one place allows you to keep everything easily accessible, organized, and top of mind.
4. Use Contactless Payment for a Faster Checkout
Contactless payments have started to boost in popularity over the last few years, and many people want the ability to pay without contact. Using a digital wallet gives you the ability to make contactless payments, even if you don’t have a contactless card. In fact, using your digital wallet is the exact same as paying with a contactless card right to the technology used. Using a digital wallet is also faster than paying with a card. Simply pull out your phone and use touch or Face ID to confirm the payment. No more fumbling to find the right card and typing in your pin. Your digital wallet truly makes checkout stress-free and contactless.
5. Get Rewarded for Purchases
Since your card is fully linked to your account, all your reward points are still earned with every purchase. For example, if you use your Arbor Financial Visa Rewards Credit Card, you’ll still get points for purchases, including 3x points on travel and restaurants, 2x points on groceries and gas, and 1x points on everything else. Since many shopping apps integrate with your digital wallet, you can even gain store-specific rewards through other mobile apps when using your digital wallet to pay.
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Digital wallets give you a more secure and versatile way to make transactions in person and online. It’s easy to add your Arbor Financial Credit Union credit card and debit card to your digital wallet and start paying without the plastic. Arbor’s cards work with most major digital wallets, including ApplePay, SamsungPay, and GooglePay.
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