4 Digital Wallet Security Features You Need to Know
You’ve likely heard of digital wallets apps like Apple®, Samsung® and Google Pay®, but all too often, they’re a feature that collects dust when mobile users don’t understand the apps’ benefits. CNBC reports that while more than 10% of millennials already use digital wallets regularly, however, 55% of shoppers remain concerned about digital wallet security.
As it turns out, however, digital wallets are incredibly secure, often even more secure than physical payment methods. For this reason, digital wallet apps are beginning to gain traction with consumers. Currently, Apple Pay® purchases account for 5% of worldwide card transactions, and this number is projected to reach 10% by 2025.
SouthEast Bank strives to offer the latest in cutting-edge banking services to put you in control of your payments. Here are 4 ways digital wallets work to keep your account secure.
Tokenization Protects Your Card Information
When you swipe a physical credit or debit card at the store, they log your card information in their system, including your name, card number, expiration date and service code. While retailers do their best to protect this information after your transaction is complete, unfortunately, data breaches occasionally happen when retail systems are compromised.
A digital wallet alleviates some of this risk using a system called tokenization, because whenever you make a purchase with a digital wallet, the wallet generates a unique, single use payment code. Instead of providing your personal information, this “token” code is only relevant for the immediate transaction. Tokenization makes your data much more difficult to track and adds an extra layer of security to your payments.
Every Protection Your Phone Has, Your Digital Wallet Has
If you lose your wallet, it’s time to cancel your cards. It’s stressful, it’s frustrating and it’s unbelievably inconvenient. While losing your phone is similarly inconvenient, it’s far more secure than your wallet for three reasons.
First, Apple®, Samsung® and Google® all offer “Find My Phone” functions that allow you to easily locate your phone. On average, Americans spend almost 2.5 days annually searching for lost items, including wallets. With a digital wallet, you can immediately secure your information and track your device more efficiently.
Second, while your wallet is full of information right at the surface, your phone hides sensitive information behind layers of encryption. By having a passcode or fingerprint lock on your phone, your digital wallet becomes impressively more secure.
Third, digital wallets offer several tools to secure purchases, ranging from passcode to biometric verification. Your information becomes much more difficult to access when you have a fingerprint lock blocking the way.
But let's say you’re looking through your digital wallet on the bus. What’s to stop someone behind you from seeing your sensitive information? Fortunately, digital wallets do not display your full account number anywhere, meaning you’re safe from prying eyes.
Access From Anywhere
If you’ve lost your phone or it’s been stolen, you may be worried about someone bypassing the protections on your digital wallet. However, in the unlikely event that a stranger accesses your digital wallet, you can still prevent your data from being stolen. By logging in from another phone or device, you can freeze your digital wallet, preventing new purchases from going through. Let’s see the old billfold do that!
It’s no secret that some malicious apps seek to take information from your phone, but digital wallets protect against this by using a practice called sandboxing. Through this process, the digital wallet is isolated from the rest of your phone, so if something does go wrong with your phone, your digital wallet will remain separate and secure. The app only interacts with programs and apps within its “sandbox.”
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