What is a digital wallet & a mobile wallet?

A digital wallet (or electronic wallet) is a financial transaction application that runs on any connected device. It securely stores your payment information and passwords in the cloud. Digital wallets may be accessible from a computer; mobile wallets, which are a subset, are primarily used on mobile devices.

Are digital wallets safe?

For the most part, digital wallets are safe. The Identity Theft Resource Center says that digital wallets rely on proven security measures such as two-factor authentication and PINs that can only be used once. Wallets also use encryption technology to scramble the financial and password information of users.

How do RFID wallets work?

Certain materials, especially conductive metals, prevent electromagnetic waves from passing through them. RFID-blocking wallets have card sleeves (or sometimes entire wallets) made from materials that don't let radio waves through. That way, the chip won't power up, and even if it did, its signal wouldn't get through the wallet.

Are mobile wallets safe from credit card fraud?

While it may seem dangerous to load all your card information onto your phone or another device, you should know that mobile wallets are safe from credit card fraud. Your data is encrypted and cannot be seen by the merchant (or anyone) once you upload your card details to your mobile wallet.