Digital wallets allow you to add credit and debit accounts to your mobile device’s "wallet" and pay by tapping your device against the payment terminal. There’s almost no need to carry your physical debit or credit cards as most merchants now accept tap payments.
You’ll need to use a digital wallet that’s compatible with your device – but if you have multiple devices, it’s a good idea to compare your options. Let’s dig into them!
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What is a digital wallet?
A digital wallet is an application that securely stores your payment information on your phone or mobile device, allowing you to complete purchases using near-field communication (NFC) technology.
The idea of digital wallets is simple. Instead of carrying physical cards around with you in your actual wallet, you add your card information to your digital wallet on your mobile device. Then you can leave your cards at home, but still use them for purchases.
How digital wallets work
You might also see digital wallets called mobile wallets, but they’re the same thing. It works by securely storing your payment information on your device. When you want to make a purchase, the merchant’s point of sale machine will simply read the information from your phone, and complete the payment - no need to swipe, insert, or tap any card.
Are digital wallets safe?
Digital wallets are arguably safer than regular wallets.
The information stored on your device is heavily encrypted and is locked with some form of authentication, usually a passcode, password, or biometric identification, such as your fingerprint.
Even if you lose your phone, whoever finds it won’t be able to use your payment info because they won’t be able to unlock your digital wallet. And with the high grade encryption, they won’t be able to hack into it, either.
Compare this with your physical wallet. If you lose it, whoever finds it can use your cards to make tap payments or online purchases without much difficulty.
That being said, there are things you can do to ensure you’re keeping your digital assets safe. The Department of Financial Protection and Innovation recommends that you:
- Don’t use your digital wallet on an unsecured WiFi network
- Set a spending cap on large purchases
- Only purchase from businesses or individuals you trust
- Avoid linking your digital wallet app to social media apps
- Monitor your transaction history
- Secure your mobile information in case you lose your device
The best digital wallets in Canada
Here are some of the most popular digital wallets currently available:
| Apple Pay | Google Pay | Samsung Wallet | Garmin Pay | |
|---|---|---|---|---|
| Available on | * iPhones * Apple watch * Macbook Pro with TouchID * iPads since 5th generation * iPad Pro * iPad Mini | * Android mobile devices that have NFC * Supported smart watches like Fit Bit | * Samsung Galaxy phones since Galaxy Note 5 * Galaxy watches | * Select Garmin watches |
| Authentication and security | * Passcode * Touch ID * Face ID | * PIN * Pattern password * Fingerprint * Retina scan | * PIN * Fingerprint * Iris scan | * Passcode |
| Where it works | Anywhere with Apple Pay or NFC (tap) payment support. | Anywhere with Google Pay or NFC (tap) payment support. | Anywhere with NFC or Magnetic Secure Transmission (MST) payment support. | Anywhere with NFC (tap) payment support. |
| Supported payments | * Credit cards * Debit cards | * Credit cards * Debit cards * Gift cards * PayPal | * Credit cards * Debit cards * Gift cards * PayPal | * Credit cards |
| Special features | * None | * None | * Add your AIR MILES or Scene collector cards | * Supports payments for some transit systems |
| Supported banks | Supported banks | Supported banks | Supported banks | Supported banks |
Apple Pay
Participating banks (not exhaustive): Amex, BMO, Brim, Canadian Tire, CIBC, Desjardins, KOHO, MBNA, National Bank, RBC, Scotiabank, Tangerine, TD
Apple Pay is already included on your Apple products. You simply need to open the "Wallet" app, add your cards, and enter your security passcode. Double-click the credit or debit card you want to use and tap your device against the card machine to make a payment. That’s it!
Pros:
- Cash back available with select cards
- No internet access required to use
Cons:
- Only works with newer Apple products
- Biometric security features can glitch
Google Pay
Participating banks (not exhaustive): Amex, BMO, Brim, Canadian Tire, CIBC, Desjardins, KOHO, MBNA, National Bank, RBC, Scotiabank, Tangerine, TD
If you don’t already have Google Pay on your device, download it from the Google Play store and open the app. After you’ve followed the prompts and added your cards, you’ll set up a secure screen lock.
To pay with Google Pay, open your device’s Settings app and type "NFC" (for near field communication). From there, find Google Play and you’re all set!
Pros:
- Extensive list of biometric security options
- Integrated with several Google products
Cons:
- Not available for use with Apple products
Samsung Wallet
Participating banks (not exhaustive): Amex, ATB, Brim, CIBC, KOHO, Manulife, RBC, Rogers, Scotiabank, Simplii, Stack, Tangerine, TD, various credit unions
Start by downloading Samsung Pay through your phone’s app store and sign into your Samsung account once you’ve opened the app (it should also ask you to set up an authentication method).
To use Samsung Pay, swipe to find the card you want to pay with and authenticate your choice. Then, touch the back of your device to the card machine and enter your PIN if the machine asks for it.
Pros:
- Allows users to withdraw cash
- Offers rewards program
Cons:
- No longer uses magnetic secure transmission (MST)
- App can glitch or run slowly
Garmin Pay
Participating banks: ATB, Affinity Credit Union, Aura, Brim, CWB, Manulife, Questrade, Stack
If you have one of the Garmin watches that supports Garmin Pay, you can set up your digital wallet through the Garmin Connect mobile app. Ask it to "Create Your Wallet" and then follow the prompts to finish setting it up.
To pay, select Wallet and enter your 4-digit passcode. Hold your watch up to the payment terminal within 60 seconds to complete the payment.
Note that Garmin Pay doesn’t currently support debit cards in Canada.
Pros:
- Uses watch-specific card numbers and transaction codes for each purchase
- Available anywhere contactless payments are accepted
Cons:
- Works with a limited number of banks
- Does not work with American Express
- Does not currently support debit cards
FAQ
Is PayPal a digital wallet?
PayPal is a digital wallet that’s available in over 200 countries, including Canada.
Are digital wallets safer than cards?
Digital wallets can be safer if you take precautions like using a secured Wi-Fi network to complete your purchase and enabling biometric authentication. Digital wallets are also heavily encrypted to protect your data.
Are digital wallets free?
Many digital wallets are free but some might charge for services like sending or receiving money, or exchanging money between currencies. It’s a good idea to read the fine print before you begin using a digital wallet so you know exactly what fees (if any) to expect.
How do you set up a digital wallet?
Typically, you’ll download the digital app to your device and set up security features like a PIN, facial recognition scan, or fingerprint. Then, you’ll add your debit or credit cards to the digital wallet, which usually requires authentication from your bank. Once you’re set up, just select your card and tap to pay.
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