You may have seen people paying for groceries with their smartphones. With only a tap of the button, the money changes hands virtually. They don’t need cash, physical credit cards, or coins because these people are using a virtual wallet. It looks easy and quick, but is it safe? Read on to find out!
An e-wallet like Paxum may transform the manner you pay regardless of where you are. It may even help you carry fewer things around, like your wallet or purse. Above all, it can hold all your accounts, money, and credit/debit cards conveniently in one place. Here’s how that works!
What Is a Virtual Wallet?
A virtual wallet is similar to almost any app on your phone. Fundamentally, it works as storage for all your financial details, including your credit card number or your bank account credentials. Also, it helps you connect these unique details with those of a vendor, enabling safe and easy money transactions.
Think of the virtual wallet as a digital intermediary between your bank and a merchant’s bank account. You authorize it to take money out of your holdings and exchange it for the goods you buy from a specific vendor. This retailer can be a brick-and-mortar store or a web-based platform. Most importantly, the transaction occurs digitally via a secure algorithm protecting your data and money through encryption.
Why Are Virtual Wallets so Popular?
A virtual wallet helps you keep all your finances safe without carrying them around wherever you go. For instance, if you are out and about and need to purchase something, you can do it via your smartphone. There’s no need for cash, physical credit or debit cards, checks, or coins. As a result, you no longer have to bring your wallet, purse, or credit card holder wherever you may roam.
People love virtual wallets also because they bring all their accounts and cards into one place. This way, you no longer have to transfer funds from one account to another when you have to make a big payment. Moreover, you no longer have to lose precious money on fees. That’s because the wallet takes the money from different accounts to meet the total cost without extra charges.
Are Virtual Wallets Safe?
Most new e-wallet users ponder this question before installing the app on their smartphones. Fortunately, the answer is straightforward, virtual wallets are 100% safe.
Most digital wallets use high-security standards, such as data encryption, two-factor authentication, and passcode protection. Others employ even stricter measures, such as fingerprint detection and biometrics readings. As a result, hacking them is nearly impossible and usually deters most cybercriminals.
Nevertheless, a virtual wallet is as safe as you, the owner, make it to be. For instance, you need to safeguard your passwords, change them regularly, and monitor your wallet activity. This way, you can detect any suspicious action in time and avoid being the victim of fraud. All in all, you should keep your digital wallet just as safe as you do with your physical belongings.