Digital Wallets – Ready to take the Leap?

Written by Kimberly Tuttle, an expert LSB banker. 

A digital wallet, or mobile wallet, is what it sounds like: an electronic “wallet” that lives on your mobile device.  Instead of using your physical plastic card to make purchases, a digital wallet allows you to pay with a compatible phone, tablet, or wearable device in stores, in apps, or on the web.

Why should I use a digital wallet?

  • Convenience – leave your bulky wallet with multiple cards at home. All you need is your phone.
  • Security – encryption, tokenization, and two-step authentication.
  • Speed – no need to wait for the chip to be read or typing in your card information.

How does a mobile wallet work?

  • Digital wallet apps are preloaded on most devices. If not, or you previously deleted it, start by downloading the wallet app of your choice.  Common mobile wallet apps include Apple Pay® (Apple Pay), Samsung Pay® (Samsung Pay), Fitbit Pay (Fitbit Pay).
  • Follow the instructions for your specific device and app, and connect your LSB card information you want to store – debit & credit cards to get started.
  • Once the verification step is complete, then your device is ready to use!
  • When you want to make a purchase open your wallet app, choose your card & tap your phone on a digital payment-enabled terminal at participating merchants.

Is it secure?

Not only is using a mobile wallet faster and easier than plastic cards, a digital wallet transaction is a more secure payment method than an actual card transaction!

  • Two-factor authentication – The biggest security concern is losing your phone or having it stolen. The best way to keep a thief out of your phone is using two-factor authentication to unlock it – such as a PIN and/or your fingerprint, facial recognition, or passcode.  Additionally, you will be required to authenticate yourself before each transaction can be processed.
  • Tokenization – Mobile wallets replace your actual card number with a unique randomized set of numbers (called a token) for each transaction. The token, rather than your actual debit or credit card number, would be used to complete the purchase.  This means businesses do not see or store your card number.
  • Information that you upload to a mobile wallet gets encrypted, making it harder for hackers to access your information.
  • Transaction protection – Pay confidently from your phone knowing that the same fraud protection we give your physical LSB debit card carries over to your mobile wallet.

How do I pay?

There’s nothing to swipe or insert at the register when you’re paying in a store with a digital wallet.  Digital wallets allow for contactless payments, which usually involve opening your digital wallet app and then holding your device over the payment reader.  This is possible because of technology called near-field communication (NFC) that allows devices to exchange information without touching.

When using your digital wallet online to make a payment you no longer need to type in the card number, expiration date and CVV number on the card.  You simply select the mobile payment option and make your secure payment with one touch.  Easy!

Where can you use your digital wallet?

You may use your digital wallet at many different merchants such as grocery stores, department stores and restaurants. Digital wallets are also accepted in many apps and on participating websites with your computer, phone or tablet, depending on the compatibility of the devices. Use your LSB debit card to make a purchase with your digital wallet wherever you see these symbols:

What if I lose my device?

The number one consumer worry is losing your device with your card information stored in the digital wallet.  If your device is lost or stolen, we can easily and quickly delete or suspend the card remotely from your device.  No one would be able to see or use the card and you would not need to replace your physical debit card.  Once your device is found or replaced, you can then safely and securely add the card back into your digital wallet.

 

 

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