How to Use Your Smartphone as a Digital Wallet

Digital wallet

Estimated reading time: 3 minutes

Cash is slowly but surely becoming obsolete these days in favor of using a digital wallet. We rarely ever need to carry it around with us as many places accept debit, credit, or even many other cash apps that can be used to pay for things.

Now that our phones are set up even to be used as a payment method, it makes sense that they can also be used as a digital wallet. Is there even any need to walk around with a wallet these days?

It’s expected that smartphones used to pay for things are going to increase quite a bit in the next few years so you should be ready to understand how this will work so you can take advantage.

In this article, we will go over how you can use your phone as a digital wallet and leave your regular wallet at home.

Digital Wallet For Cryptocurrency

One of the most secure ways to use your phone as a digital wallet is with a cryptocurrency like Bitcoin. Since the cryptocurrency is stored on the blockchain, it is very safe since it can’t be hacked.

The blockchain is not on a single server, but on millions of computers so a hacker could never access your coins through this method. Now, they can actually try to hack in other ways, so you do need to make sure that you are keeping your phone secure. It’s best to make sure that you have a good security system on your phone with double authentication.

Also, find apps that use TEE which is a way to isolate the app from the rest of the phone so even if your phone does get compromised, nobody will be able to access your app and take your cryptocurrency.

You can use many different bitcoin apps to work on your phone that lets you make international payments hassle-free and very fast as well as using exchanges to exchange your LTC/BTC or other currency.

Digital Wallet Credit or Debit Card

There are also apps that will allow you to use your credit card information but through your phone. Many of them work by taking a picture of your credit card so it can instantly process all of the information and set up the phone to be used in its place.

SEE ALSO: How to Use Apple Pay For First-Time Users

The picture is not stored in the phone itself so you aren’t at risk of somebody getting a hold of the actual credit card. Then, once the information is in there, your phone will be used to scan the code for payments.

Some can even scan the phone without you needing to open the app. There is a sensor in the POS terminals that ask the phone for the information and then it is transmitted automatically.

Peer to Peer Digital Wallet

You can even use your phone to pay friends and family instead of using cash. With apps like Google Pay and Apple Pay, you can automatically send payments to anybody who is also using the app and has an account. It only takes seconds and is much better than needing to go to an ATM to always be withdrawing cash to have on hand.

The information provided herein is not and is not intended to be, investment, financial, or other advice.