Digital Wallets - A Great Way to Protect Your Payment Information

Protecting your personal information has never been more important, especially when it comes to your payment methods.  That’s why more than 50% of Americans are using digital wallets for payment when making purchases online and in-person.

You may think of digital wallet as nothing more than a convenience, but its functionality is aimed at creating a secure space for sending money. 

What is a Digital Wallet?

A digital wallet is a secure app-based system on smartphones or smart wearables (think watches) that store encrypted credit card, bank, and loyalty information.  This allows users to make contactless payments by taping a device or selecting a payment app instead of producing a card at the store or entering your payment information into a website’s purchasing platform.

What makes it safe?

When you add your debit/credit card to your digital wallet, be it Apple Pay, Google Wallet, or Samsung Pay your bank replaces your card number with a “token”, a virtual one-time code for transactions.  That means your card information is not stored in your device, is never shared with vendors and the chance a scammer can capture it as point-of-sale is dramatically reduced.

Depending on your preference, a secret pin number or facial ID is required to initiate purchases using your digital wallet, that way you always have control over spending even if your phone or smart wearable is lost or stolen.

How does it actually work?

Digital wallets use different technologies to process payments:

1. Near Field Communication or NFC:  This tech allows two devices to exchange information when they are placed close to each other.  Apple Pay and Google Wallet use this tech and the merchant you are purchasing from must have compatible card readers.
2. Magnetic Secure Transmission or MST: This is a magnetic signal similar to the traditional debit/credit card swipe at a payment terminal.  Samsung Pay uses NFC and MST for their transaction options.
3. QR Codes: These codes are scanned with your phone’s camera.  The PayPal payment platform generates unique QR codes that are scanned by the purchaser to direct their wallet to make the payment.

As of March 17, 2026 Mission Bank’s business debit cards are eligible to be added to Apple Pay, Google Wallet, and Samsung Pay.  If you’d like more information on adding your Mission card to your digital wallet please contact your business banker.