Quite simply, digital wallets are electronically stored credit and debit cards on mobile devices—most commonly on smartphones, but also wearables and in particular smart watches are increasingly being used for digital wallets. Consumers can then use them contactlessly in the store and remotely make payments for goods and services. Some digital wallet providers also store things like movie tickets, so people only need their phone to go to a movie theater—which makes sense because traditional wallets also were used to carry movie tickets.
Here’s a look at some of the various types of digital wallets that demonstrates why shopping around for the right digital wallet is a smart idea.
Apple Wallet—or just Wallet—is an app that is already installed on iPhones so consumers can easily add their cards without having to download the app and begin using their Wallet to make purchases. And that’s not all it can do. Have an iPhone and recently booked a flight? There’s now no need to go to your airline’s app to download your QR check-in code, it’s automatically stored in your wallet even if you purchased the ticket on your computer. Coupons, loyalty cards and types of IDs can also be added to your Wallet.
Due is a digital wallet that was introduced in 2015 originally designed for contractors and small businesses with the capabilities of tracking time and providing innovative invoicing. Now they offer a complete solution no matter how big or small the company, with project and client management tools, digital wallet, and payment processing—all without the need to go through a separate bank because they offer their own eBank.
PayPal is appealing to retailers because they can accept payments in 25 different currencies from 200 countries. And their digital wallet plans for 2021 demonstrate that not only are digital wallets on the rise, companies are eager to get into the incredibly competitive payment industry (in 2020 digital wallet spend was $5.5 trillion and it’s expected to be $10 trillion in 2025). Besides acquiring Honey (the coupon/discount finding company), PayPal plans to roll out the following in their digital wallet: “direct deposit, check cashing, budgeting tools, bill pay, crypto support, subscription management, buy now/pay later functionality and all of Honey’s shopping tools.”
Samsung Pay’s digital wallet is set apart by giving consumers the ability to take out loans and get cash back on purchases—and, like other digital wallets, users earn loyalty rewards when they use Samsung Pay. Also, similar to Apple Wallet, you can apply for a Samsung Money by SoFi payment card that “gives you the convenience of a debit card with the rewards of a credit card.” And users can receive up to 30 percent off of Samsung products.
Want to read about other digital wallet providers? Get a list of the 30 top digital wallets.