What is a digital wallet

Digital wallets: these options exist

News from April 22nd, 2020

If you want to pay for your shopping in the supermarket, there are various options available - you can pay with cash, with your bank or credit card, but also with your smartphone. Paying with the smartphone is becoming more and more popular - even Germans are slowly but surely getting excited about this option. More on this in this submitted article.

And that, although the German is actually always critical when it comes to innovations that have to do with his finances. Because Germans are cautious and reserved - especially when it comes to money. Ultimately, one must not forget that Germans - despite the European Central Bank's zero interest rate policy - still swear allegiance to the savings account. While paying with the mobile phone is part of everyday life in the USA or in Asia, people in Germany are even more reluctant.

But what should you watch out for when you want to pay with your smartphone in the supermarket?

Store digital coins in your digital wallet
The digital wallet, in technical jargon is referred to as the wallet, will be a term mainly used by crypto fans. Anyone who trades in crypto currencies or has bought coins in a certain digital currency will use a corresponding wallet. It is important that you compare the different variants and options with each other in advance - for example, a Ripple Wallet comparison makes perfect sense if you want to trade with the digital currencies Ripple.

It should be noted that the coins are stored in a digital wallet. The next part is about the transmission. This means that the wallet is required to transfer and receive coins. Trading in cryptocurrencies is impossible without a wallet.

By the way, anyone interested in trading digital currencies should be careful. Even if the forecasts are promising, caution is advised - the price does not always have to go up. Steep descents can simply never be ruled out.

Security: cash or smartphone?
First and foremost, it is a question of security. How high is the risk if you pay for purchases in the store with your smartphone? Absolutely low. If you lose your bulging wallet, for example, your cash is very likely to be lost forever. Because the notes and coins can be easily removed from the wallet; a credit card can of course be blocked so that it is rendered unusable. The bureaucratic effort that then arises to get your cards and ID cards back should not be underestimated. Anyone who had driving licenses such as ID cards or numerous customer cards in their wallets will sometimes need several weeks to get back to the state they were in before they lost their wallet.

If you lose your smartphone, on the other hand, it may be particularly annoying, but the likelihood that you will then pay with the mobile phone is low. As a rule, a fingerprint is required to open the app. The app can be opened via touch or face ID and then paid for - that is, with the appropriate security precautions, using the cell phone is impossible.

It should be noted that other apps are available for Android and iOS. If you use an Android smartphone, you can either work with Google Pay or use the app of your house bank. However, if you have an iPhone, you can only pay with Apple Pay. This is because third-party apps are not accepted.

Interest increases
Paying with the smartphone is becoming increasingly popular. It is therefore only a matter of time before the payment process becomes established in the Federal Republic of Germany. Even if the Germans are still somewhat skeptical, the figures show that interest is increasing. Younger people in particular are increasingly using their smartphones to pay for their purchases. (PRM)