Digital Wallets in USA

Recently in the United States of America, the use of digital wallets has been on the increase. Many people prefer the new mode of performing transactions offered by digital wallets as against physical wallets. The reasons are not far-fetched – digital wallets provide more advantages than physical wallets for both the customer and the company. The coronavirus pandemic also led to a dramatic increase in the adoption of digital payment methods to ensure a safety-first approach to business.

Benefits of digital wallets

For customers, a digital wallet securely stores all payment information in a compact form thus reducing the need to carry physical wallets about. Digital wallets are also safer and more secure than credit cards, debit cards, or cash. They provide a better shopping experience and makes it easier for users to keep track of transactions. In addition, it also allows users to transfer funds to family and friends residing in different nations. 

It is not only the customers who benefit from using digital wallets, companies and retailers also enjoy the benefits digital wallets offer. Companies that need to collect customer data for marketing and advertising purposes can benefit greatly from digital wallets. They get to know the purchasing habits of customers, thus increasing the effectiveness of marketing methods of their products. Also, in the period of the pandemic where contact is to be minimized, digital wallets provide contactless payment methods which encourages safer practices for both the retailer and the customer. 

Examples of digital wallets

In the U.S., the most popular digital wallets are Apple Pay, Google Pay, and Samsung Pay. Some other popular digital wallets include PayPal and Venmo, both of which are uniquely social by allowing you to easily send money to retailers and friends.

Apple Pay

The Apple Pay digital application is available exclusively for users of iPhones, Apple watches and iPads. It allows users to make both online transactions and in-store purchases. For transactions made in-store, the user would have to unlock their phones and hold them near a compatible Point-of-Sale system. The Apple Pay app ensures a seamless and secure mode of payment, thus providing ease of experience.

Google Pay

Google Pay is a digital wallet platform developed by Google for online, in-app and in-person contactless transactions. Users can make payments with Android devices, tables, or watches with details saved to the users’ Google Account, Chrome, PlayStore or YouTube. It also supports iOS device, albeit with limited functionality. The app also supports other electronic documents such as movie tickets, gift coupons, student ID, store cards, etc.

Samsung Pay

Samsung Pay is a digital wallet and mobile payment service developed by Samsung Electronics that enables users to make payments using compatible phones and other Samsung-produced devices. Samsung Pay offers more than just Near Field Communication (NFC) in some regions – such as the US – by also offering a mobile wallet technology called Magnetic Strip Technology (MST) which allows contactless payment to be made with terminals that do not feature NFC readers. 

Conclusion

Digital wallets provide consumers with a convenient, secure, and efficient methods for virtual payments, storing coupons, gift cards, tickets, loyalty rewards cards and so much more. Although, it might not be time to completely ditch your physical wallet, it is very likely that there will continue to be an increase in the adoption of digital wallets by U.S. consumers and retailers in the present age of the pandemic driven by higher demand for a contactless experience.