Have you ever wondered how to use a mobile wallet? If so, you are not alone. But learning how to use your mobile wallet is essential since, among mobile wallet users, 46% use it at least once per week.
In 2020, mobile wallet users only used it in 42% of purchases, highlighting their growth. Additionally, in 2020, 32% of uses said they’d consider using their mobile wallets for bill payments, and that number has increased to 36% this year.
As mobile wallets continue to become more popular, it’s crucial to know how to use them. Keep reading to learn more.
What Is a Mobile Wallet?
A mobile wallet is a virtual wallet that stores your credit and debit card numbers and loyalty numbers. You can access your mobile wallet through an app that is pre-downloaded on most devices.
Mobile wallets provide a convenient method to paying for items that do not require you to carry any money or cards. The most popular mobile wallets are Google Pay, Apple Pay, Samsung Pay, PayPal, CashApp, and Venmo.
Types of Mobile Wallets
There are multiple types of mobile wallets for you to choose from. The main types are as follows.
Open wallets, like PayPal, allow you to make in-store and online purchases with your mobile device. They also let you withdraw the funds in cash since they are used directly by a bank or through a third party.
Unlike open wallets, closed wallets are not through your bank or a third party. Instead, closed wallets are linked to specific merchants, and you can only use money associated with that merchant.
An example of a closed wallet is Amazon Pay.
Semi-closed wallets allow you to make purchases at multiple merchants, but there has to be an existing contract between them and the mobile wallet company.
This type of wallet allows you to withdraw funds into your bank account, but you are not permitted to withdraw cash.
How to Use a Mobile Wallet
Using a mobile wallet is pretty straightforward. Once you have the app and open it, you need to enter your card information.
When you want to make a purchase using your mobile wallet, open the app and select the card you want to use. Then just tap your phone to a digital payment-enabled terminal, and you’re all set!
How to Transfer Money Using a Mobile Wallet
Another significant aspect of mobile wallets is the ability to transfer money online. To send money to a mobile wallet, you first need to make sure the receiver has a mobile wallet set up on their phone.
The next steps include:
- Locate the recipient in the app
- Insert the amount you want to send
Once you press send, the money instantly appears in their wallet. Money transfers have never been easier!
You can even transfer money internationally with Venmo using Transferly. While you can only transfer Venmo to Venmo, it doesn’t pose a problem since the mobile wallet has over 50 million active accounts as of 2019.
If you want to send money internationally, check out www.transferly.com/venmo-money-transfers-can-you-send-money-internationally to learn more.
Start Using Your Mobile Wallet Today
Gone are the days of carrying around wallets filled with cash and cards. Now that you know how to use a mobile wallet, all you need is your phone, and you are set!
From tapping your card to grab some snacks at a convenience store, paying a friend back for dinner, and transferring money internationally, mobile wallets have changed the game.
Did you enjoy learning about how to use a mobile wallet? If so, check out more of our money and finance-related content!