Digital Wallet Explained
In this new age of ever-changing technology, the digital wallet is yet another tool to achieve secure electronic convenience for financial information or other documents. This service can store banking, credit card and other financial details on any smart device for easy access. The user can conveniently schedule payments without use of an actual wallet. You can actually leave your wallet at home knowing you’ll be able to retrieve any of your credit cards or accounts from your phone or smart watch while out.
Digital wallets do not require contact and eliminate the need to enter a credit card number or swipe a card to process a transaction. Using a digital wallet also lessens the time it takes to complete a purchase because you do not need to access the physical card to make the purchase. Added features of some digital wallets include storage of airline boarding passes, movie tickets, reward cards, car keys, coupons, ID cards and much more. It is important to note that account information isn’t stored on the device so businesses cannot access your financial info when purchases are being processed.
Transactions are a very simple process. The user simply needs to hold the smartwatch or phone which has the digital wallet set up near the credit card reader to allow the two devices to send encrypted information to each other through radio frequency. Some examples of digital wallets you may have heard of are Apple Pay, Fitbit Pay, Google Pay, PayPal, Venmo, and Zelle to name a few of the most popular.
While digital wallets are the latest technological advancement in financial day-to-day operations for the consumer, not everyone is comfortable with using them. Some may prefer other options, such as contactless cards. These also offer the contactless technology to complete in-person transactions by simply holding the card near the card reader without swiping the card. Several retailers have begun to offer apps linked to their stores as well as a form of payment of your choice. When a purchase is made, specifically from the retailer, the payment option you selected is automatically charged.
Typically, smart devices have a digital wallet preinstalled that simply needs to be activated. Otherwise, any of the many digital wallets listed prior can be downloaded from your app marketplace. A digital wallet can hold numerous cards and can be set up to prevent use without your permission.
A digital wallet is a very convenient way to store and facilitate daily purchases on smart devices, that have become the norm to have on hand at all times. A digital wallet eliminates the need to bring along cash, credit cards, check books and any other forms of payment. By using electronic software technology, digital wallets link the connected checking account to the vendor to complete the purchase, freeing the user to be carefree. Another beneficial perk of technology in effect.
The Importance of Understanding Your Net Worth
- Certificates of Deposit
- Money Market Accounts
- Checking and Savings Accounts
Another type of asset that can be considered is business equity. However, the valuation may be difficult to determine. The accessibility of receiving funds from a business is usually dependent on the sale of the business, which is not usually an easy or fast process. The value of the business is also usually based upon the industry, profit margins and business appraisals by an industry expert. All in all, a business asset is not a reliable value totally in your liquid net worth in an emergency. It can, however, be factored into overall net worth with careful consideration.
Important Note: Nothing in this article constitutes investment, tax, and/or financial advice, and you should seek advice from an independent financial or tax advisor. The mention of products, services and business in this article does not constitute an endorsement or recommendation.