Financial Education Blog

Digital Wallet Options

*This is the final installment in a three-part blog series focusing on digital wallets.

 

If you’re finally warming up to the idea of using a digital wallet – or maybe you’ve already discovered how fast, secure and convenient they are - it’s important to take the time to learn about the different digital wallets and what they have to offer.

 

According to Due - a payments, eCash, online invoicing, time tracking, global payments and digital wallets solution for freelancers, small business owners and companies of all size - the best digital wallets of 2020 follows:

 

  1. Cash App. Cash App was released in 2014 and allows users to make contactless purchases. This digital wallet stores your credit and debit card information. This info is converted into tokens that only can be accessed with your fingerprint. In other words, it’s one of the most secure wallets available. Cash App also has another product appropriately called Wallet. This handy app stores everything from boarding passes, concert and movie tickets, loyalty cards and coupons.
  2. Due. When Due launched in 2015 it focused on providing an innovative invoicing and time tracking solution for freelancers and small businesses. The company has expanded and has become a complete solution for companies of all sizes. Due charges a flat 2.8% per transaction fee no matter where you live in the world. There are no hidden fees or surcharges.
  3. Google Wallet. Up until 2016, Google Wallet was a mobile app. It’s now a web app that allows you to send money to anyone the United States by using just an email address or phone number directly from your debit card, bank account or Wallet Balance. Transfers occur in just a couple of minutes and you’ll need your Google Payments PIN to access funds.
  4. Android Pay. Android Pay is Google’s secure and fast in-store smartphone payment option that’s built right into the operating system. Like most other mobile wallets, Android Pay relies on NFC technology to enable payments by tapping a phone to a NFC-enabled terminal. What makes Android Pay appealing is that Walgreen’s has launched a loyalty program for Android Pay users and you can now order and pay for food through Grubhub.
  5. Samsung Pay. Launched in 2015, Samsung Pay does something that no other digital wallet does; it utilizes both NFC and MST technologies. This means that you can make contactless payments at NFC-enabled terminals and traditional magnetic stripe terminals. Besides being able to store your credit and debit cards, you can also store gift cards, rewards cards, and memberships. Samsung even has its own reward system for purchases.
  6. PayPal. PayPal is one of the oldest, and most widely used digital wallets. It’s been used to make payments online and transfer funds between other parties with relative ease. PayPal is available for both Android and iOS users. PayPal has stepped up its game after signing agreements with MasterCard and card processor First Data. This allows customers to have the option of paying with the PayPal app, which is the same process as tap-to-pay options like Apple Pay, or swiping a PayPal MasterCard to make purchases in-store.
  7. Venmo. Speaking of PayPal, the company also owns Venmo, which is arguably the most popular peer-to-peer payment apps out there. Simply link a credit card, debit card or checking account and start paying back your friends. You can also receive payments too. Venmo uses data encryption to protect your financial information and you can even share your transactions with a message on Facebook, Twitter or Foursquare. Bank and debit card transfer are free, but credit card fees are 2.9%.
  8. Alipay. As a part of the giant Alibaba, it’s no surprise that this is China’s leading third-party payment solution and digital wallet. In 2016 though, Alipay moved beyond mainland China and arrived in Europe, mainly for Chinese tourists to make in-store payments and receive offers. For businesses situated in a city that’s a popular tourist destination, or if your business has an online store that caters to overseas customers, then it’s definitely worth giving Alipay a try.
  9. Walmart Pay. Released during the summer of 2016, Walmart’s mobile wallet uses QR codes, as opposed to tap-to-pay that relies on NFC-technology. This wallet is compatible with Android and Apple phones and can also be used to organize Walmart gift cards, create shopping lists, store your Walmart receipts, refill your prescriptions and even find an item’s location inside your preferred store.
  10.   Dwolla. Dwolla provides a digital payment network that can transfer money between U.S. bank accounts and credit unions simply by using their e-mail address or a phone number. There’s also a digital wallet feature to store personal and payment information so that transactions can occur within a day. This makes sending and receiving payments, paying employees and setting up recurring payments/billing a breeze. There are no transaction fees and with Dwolla’s intuitive API, you can tailor fit the program so that it fits your specific needs.

    Digital and Mobile Wallets at 7 17

 Digital wallets have become the next stage in the evolution of money as digital currency becomes more common. Currently, there are over 100 digital wallets for consumers to choose from. It’s important to note that not all cards are compatible with all digital wallets.

 

At 7 17, the credit union partners with three major mobile wallets: Apple Pay, Samsung Pay and Google Pay. According to Sue Aliberti, 7 17’s vice president, payment solutions manager, “7 17 is not required to participate or enter into agreements with merchants that allow the storage of cardholder information into a digital wallet, such as PayPal or Amazon; however, 7 17 is required to enter into agreements with mobile wallet providers.”

 

Aliberti points out that there is a distinction between digital and mobile wallets.

 

“Digital wallet is a generic term that covers software that electronically stores cardholder information,” she said. “Digital wallets are great for recurring payments, as it does provide for a faster and safer checkout experience.”

 

 Mobile wallets are a safe and secure way to pay for everyday transactions.

 

“Samsung Pay uses Near Field Communication (NFC) and Magnetic Secure Transmission (MST) technology and can be used with most payment terminals, whereas Apple Pay and Google Pay only work with NFC equipped terminals. Regardless of which mobile wallet provider you use, all mobile wallet transactions utilize encryption technology called tokenization. Tokenization converts actual card numbers into pseudo card numbers during the transaction process that is sent from the merchant to Visa. Visa maintains the actual cardholder numbers in a secure token vault. Using a mobile wallet is just as secure as using an EMV chip enabled card,” Aliberti said.

 

Members are able to load several cards into a digital/mobile wallet; however, a default card must be selected. A quick check can verify that your 7 17 credit or debit card is selected as the default!

 

 Learn more about the best digital wallets at, https://due.com/blog/the-11-best-digital-wallets-of-2020/.

 

Learn more about the top 101 digital wallet providers at, https://due.com/blog/top-101-digital-wallet-companies/.