A digital wallet (Apple Pay, Google Pay, Samsung Pay) allows secure "tap-and-go" payments using a smartphone or smartwatch instead of physical cards. Set it up by adding cards to your pre-installed app, then pay in-store by unlocking your device and holding it near a contactless terminal.
A digital wallet (or e-wallet) is a software application or online service that securely stores a user's payment information, identification details, and transaction history, allowing them to make electronic payments without using physical cash or cards.
You have 2 ways to tap to pay in a store: Unlock your phone and hold it near the reader: You can tap the terminal when your phone is unlocked, even when the Google Wallet app is not open. If prompted, use your Android screen lock to verify the payment.
Using Your Digital Wallet
Look for a symbol at the checkout counter that indicates your digital wallet is accepted. Then, open your digital wallet app, select the card you want to use, and hold your phone near the payment terminal. You'll either need to enter your PIN or use your fingerprint to confirm the payment.
Add a pass from a photo:
Cons of a digital wallet:
Set up pay contactless
Add a boarding pass with a screenshot
Examples of Digital Wallets
PayPal's mobile wallet app can also be operated on a desktop, laptop, or tablet. The Apple Pay digital app is streamlined and available exclusively for users of iPhones, iPads, and Apple watches.
You can pay with Google Wallet wherever you find the contactless or Google Pay symbols on the payment terminal screen or cash register.
A digital wallet — is even more secure than a chip card because it doesn't use your actual card number for the transaction. As a security measure, your card information is only used in the initial setup of the wallet, helping increase mobile payment protection.
Digital Wallets offer a fast, easy and convenient way to pay in-store, online and in-app by using your phone or other connected devices instead of cash or plastic credit or debit cards. As their popularity grows, it's useful to understand how they work.
How to use digital wallets
Yes, tapping your card is generally considered safer than inserting it because it uses tokenization and encrypted one-time codes, preventing your actual card details from being exposed to the terminal and reducing the risk of skimming, keeping your card in your possession at all times, and often requiring biometric authentication with mobile wallets, though both methods are secure due to EMV technology. While both tap and insert (chip) use strong EMV security, tapping avoids physical contact with potentially compromised readers and keeps your data encrypted for each transaction, making it a superior choice for security and hygiene.
Can I pay contactlessly at Exxon and Mobil stations? Yes, you can pay with Exxon Mobil Rewards+ app or use a digital wallet on your smartphone to tap and pay at the pump with Apple Pay.
The best digital wallet apps right now
If you're considering making the leap to digital payments, you'll likely want to consider one of the top four phone-sponsored digital wallet apps: PayPal™, Apple Pay® (iPhone® devices), Google Pay™ (Android™ devices) and Samsung Pay™.
Device theft or unauthorized access
If a device containing a digital wallet is stolen, unauthorized users may try to gain access to personal and financial information. This is why security measures such as passcodes or biometric authentication are essential.
Most digital wallets are free to use as a consumer, unless you're using a credit card, in which case the normal list of credit card fees↗ applies. Digital wallet providers make their money by charging a small transaction fee to the merchant when you pay using a digital wallet.
Top E-Wallet Apps in 2026 | Secure & User-Friendly Picks by Savvycom
If precautionary steps are not taken, a digital wallet can be hacked. While they offer more security than carrying physical cards, users still need to be cautious. Common threats include phishing, malware, and social engineering, all of which can compromise your wallet.
To get a digital wallet on your phone (Apple Wallet for iPhone or Google Wallet for Android/Samsung), download the app if needed, open it, and tap to add a credit/debit card by scanning it with your camera or entering details manually, then follow prompts to verify with your bank to enable contactless payments and store tickets, IDs, etc..