Last editedDec 20212 min read
A digital wallet is sometimes referred to as an e-wallet and, in simple terms, it is a system which stores users’ payment details and passwords. Using the right digital wallet makes it easier to make purchases both online and in real-world scenarios. In some cases the digital wallet will be linked to a mobile payment system, which makes it possible for purchases to be made using a smartphone. As well as payment details and passwords, a digital wallet can store digital coupons and loyalty card details.
Choosing the best digital wallet for you
Finding the right digital wallet for your circumstances and the kind of shopping you tend to do is a process which starts with asking yourself a few questions. These would include which is the best digital wallet for cryptocurrency and what is the best digital wallet app overall? Before answering these questions and exploring the many digital wallet options available it’s probably useful to divide the digital wallets available into the different general types:
Hot storage bitcoin wallets – these digital wallets store cryptocurrency online and are provided free of charge. The fact that the currency in question is stored online means that security is the responsibility of the provider, and so users should carry out intensive research into the security provisions in place before choosing a hot storage wallet.
Desktop wallets – these are apps which run on a laptop or desktop wallet, and store all of the cryptocurrency you have on the device. Although users have complete control of the funds in question, they also have the responsibility of ensuring that all security measures – such as malware protection – have been taken, and that the information in question is backed up.
Mobile wallets – a mobile wallet operates via an app which runs on a smartphone. Wallets of this kind are extremely convenient when making in-person payments or using QR codes for speed and convenience. As with desktop wallets, the user is responsible for backing up the device in question to keep all of the data safe.
Options for the best digital wallet
Cash App – stores users’ credit and debit card information enabling contactless payments using an iPhone or iPad. The card data is converted into tokens which can only be accessed via fingerprint, offering enhanced security
Google Wallet – a web app which allows users to send money using just an email address or phone number, from a debit card, bank account or wallet balance
Android Pay – an in-store Google payment system that’s built into the operating system of a smartphone. Enables payments to be made simply by tapping the phone onto a payment terminal
Samsung Pay – operates in a similar manner to Android Pay, and as well as storing debit and credit card details, this digital wallet can store reward cards and gift cards, and Samsung also runs its own reward system based on purchases
PayPal – one of the most established and widely used digital wallets. Enables online payments and the transfer of funds between users, and works equally well for Android and iOS users
Venmo – this peer-to-peer payment app works by linking to a credit card, debit card or bank account, and users can send and receive payments
Alipay – the leading third-party payment solution and digital wallet in China, Alipay is now used in Europe, so that Chinese tourists are able to make in-store payments. Any business which operates on a global basis should think about using Alipay.