What is a Digital Wallet?
A digital wallet is a secure online account where you can store your payment information and other personal data. It is a convenient way to pay for goods and services, which means you don’t have to carry around your credit card or cash. You can also use it to transfer money to other people or to pay for online transactions. There are many different types of digital wallets available in the market today, but they all have one thing in common: they are designed to make your life easier and more convenient.
What are the Benefits of Using a Digital Wallet?
There are tons of benefits to using a digital wallet. For starters, it is secure. Unlike your debit card or credit card, which is vulnerable to fraud, your digital wallet is protected by advanced encryption technology. With a digital wallet, you don’t have to worry about someone using your personal information to make fraudulent purchases.
Digital wallets are also convenient. Unlike credit cards and debit cards, which you have to carry around, you can access your digital wallet from anywhere with an internet connection. It is also easy to use. All you have to do is sign up for a digital wallet and enter your payment information. You don’t have to worry about remembering all your credit card numbers or PINs.
The Rise of Digital Wallets
Digital wallets have already been on the market for quite some time but the COVID-19 pandemic has made them even more popular. As people are forced to stay at home and limit their social interactions, it is becoming increasingly important to find new ways to pay for goods and services. With digital wallets, you can use your smartphone to pay for everything from groceries to gas. It is also a safe and convenient way to pay for online transactions.
With a contactless payment system, you can also pay for goods and services by simply waving your smartphone at the checkout counter. This is a lot easier than using a credit card or debit card, which you have to swipe and enter your PIN number.
Most Popular Digital Wallets in Canada
The digital wallet industry in Canada is dominated by some of the biggest tech giants in the world, including Apple, Google, and Samsung. Traditional banks and other alternative financial institutions are also trying to keep up with the times and are creating their own digital wallets. Some of the most popular digital wallets in Canada are:
Apple Pay
Apple Pay is Apple’s digital wallet, which is available on the iPhone, iPad, and Apple Watch. It is a contactless payment system that allows you to pay for goods and services by simply holding your Apple device near a compatible Point-of-Sale system at the checkout counter. You can also use Apple Pay to pay for online transactions, including iTunes and App Store purchases. One of the biggest downsides of Apple Pay is the exclusion of gift cards and membership cards.
Google Pay
Google Pay is the tech giant’s digital wallet, which is available on all kinds of devices that run on the Android operating system. It is also available on iOS devices but with limited functionality. Google Pay is widely accepted in Canada and is used by many retailers and service providers. One of the biggest advantages of Google Pay is that it supports a variety of digital files such as movie tickets, gift cards, store coupons, identification cards, and so much more. Plus, a lot of financial institutions in Canada also support the Google Pay app.
Samsung Pay
Samsung Pay is Samsung’s answer to Apple Pay, which is available on all modern Samsung devices. Samsung Pay uses Near Field Communication (NFC) and a new digital wallet technology called Magnetic Secure Transmission (MST), which mimics the magnetic stripe on a normal debit or credit card. Samsung Pay supports some of the leading credit card service providers in the world, including American Express, Mastercard, and Visa.
Digital Wallets Offered By Banks
Canadian banks are following the lead of tech giants and creating their very own digital wallets. RBC, for example, offers its own digital wallet called RBC Launch, which is only currently available on iOS devices. It allows RBC banking customers to add their RBC debit and credit cards, which they can use to make online and in-store purchases. Meanwhile, CIBC redirects their customers to the Apple Store to download Apple Pay, and allows them to add their CIBC debit and credit cards. The TD Wallet, on the other hand, only supports loyalty cards, gift cards, and membership cards.
Conclusion
The digital wallet industry in Canada is growing by leaps and bounds. While many of the biggest tech giants in the world are dominating the industry, smaller players are also making their mark. Many Canadians are embracing digital wallets, but not everyone is a fan. Some Canadians still prefer to use physical debit or credit cards, which they can carry in their wallet. But, as more and more people embrace the convenience and safety of digital wallets, the number of Canadians using them is only going to grow in the years to come.