Digital wallets allow people to make payments without using their physical debit or credit cards. They can also store loyalty card numbers for convenience. They can replace a leather wallet for many purposes. PSI Pay, a UK fintech company, explains that how people use digital wallets differs between Europe and the United States.
In Europe, people hold cash balances on their digital wallets. Most people keep this balance low as they don’t earn interest and is not insured by the government like a bank account balance is. People can pay for products and services with their digital wallets or they can use them to withdraw money from ATMs. The team at PSI Pay says that an increasing number of people are now using their digital wallets in Europe to exchange money they have in cryptocurrencies to government-backed currency that they can use to pay for things at places like a restaurant.
In the United States, a digital wallet doesn’t hold any money. Instead, it is used as a way to access debit and credit cards in a convenient fashion. PSI Pay says that merchants can’t access a person’s personal info when they use a digital wallet to pay for something and any charge-backs are handled by that consumer’s bank rather than by the digital wallet provider. To pay for things people just input their card numbers into the app and this links their accounts to their digital wallet. When they pay for something they just choose which card to use in the app.
To make things even more convenient in Europe, PSI Pay teamed up with Kerv. Kerv created a device using a Kickstarter campaign which is slid onto a person’s wrist. They just wave the device near a sensor at retail and service provider locations who accept payment in this way. PSI Pay says that more and more locations are installing these sensors because of how convenient and secure the whole system is. Kerv hit their Kickstarter target in October 2015 and have received a number of industry awards. They partnered with PSI Pay In June 2016.
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