Digital wallets have become a hugely popular payment method in the UK, with around 20% of Brits using one for everyday in-person purchases.¹

If you’re new to the concept, read on to find out exactly what a digital wallet is and how it works.

We’ll run through 5 of the best digital wallets in the UK right now, with a look at features, compatible devices and availability. It’s all to help you choose the right one for you.

Remember that your Wise card is compatible with digital wallets like Google Wallet, Apple Pay and Samsung Wallet. And with the handy Wise app, you can hold, convert, send and receive multiple currencies all in one place.

Learn more about the Wise card 💳

What is a digital wallet?

A digital wallet is an app on your smartphone, where you can store all of your debit and credit cards in virtual form. You can also add digital tickets (i.e. train tickets, theatre tickets etc), loyalty cards, vouchers and more.

Once you add your cards to a digital wallet, you can use your phone instead of a physical card to make contactless payments. You can also use a smartwatch to tap to pay, if you have one.

You can pay with a digital wallet on your phone wherever you see the contactless symbol. For example, you can tap to pay on public transport or pay for your supermarket shopping at the till.

Pros and cons of a digital wallet - why use one?

Digital wallets may be widely used, but they aren’t necessarily for everyone. Let’s take a look at some of the benefits and potential downsides.

Pros:

• Convenience. You already have your phone on you, so it’s a natural step to use it as a payment method. It also means you can pay for things if you forget to take your physical debit card out with you.

• Secure payments. In most cases, digital wallets use advanced encryption and authentication to protect your money. You may need to use a fingerprint or face recognition to sign in, and that’s on top of the biometric or PIN security to unlock your phone.

Cons:

• You can’t use a digital wallet if your phone battery dies or you have tech problems. There’s also the issue of compatibility, as older devices and operating systems may not support the latest digital wallet app.
• Availability constraints between countries. Not all mobile wallets work in all countries. A prime example is Cash App, which used to be a popular mobile wallet in the UK but has since withdrawn from the British market - it’s now only available to US customers.

Best digital wallets in the UK compared

Now, let’s take a quick look at some of the best digital wallets in the UK, comparing them on features, fees and compatibility:

Google Wallet

Formerly known as Google Pay, Google Wallet is one of the most popular mobile wallets in the UK. It can only be used on Android devices though, so it’s no good if you have iOS devices.

Features include:

• Add debit/credit cards, loyalty cards, gift cards and even digital car keys
• Add transport tickets and boarding passes, with live updates on departure times and delays from Google Search
• Store vaccination data, for example your COVID-19 vaccination card or record.
• Security - Google uses features such as 2-step verification, encrypted payment codes to hide your real card number, Find My Phone and remote data erase.

In terms of acceptance and availability, it can be used pretty much anywhere you see a Google Pay or contactless logo. You can also use Google Pay to shop online.

You’ll need a Google account before you can get started with Google Wallet, but the good news is that there are no fees involved.

Apple Pay

Apple Pay is the digital wallet designed for use on iOS devices only, including iPhones, Apple Watches, Macs and iPads. You don’t have to download it either, as the Wallet app comes built-in to compatible iOS devices.

Its features include:

• Pay Now or Pay Later (online or in-app only, eligible purchases and retailers)
• Add debit/credit cards, loyalty and rewards cards
• Add live entertainment, cinema and gig tickets
• Store gym passes
• Use online and in-stores
• Express Mode for public transport - no need for face or touch ID, simply hold your device to the reader to pass through the barrier
• View debit card balance in the app
• Add boarding passes and receive live notifications and flight information
• Add digital car keys
• Security - Wallet benefits from all iPhone security features, plus unique transaction codes for payments so that your card number is never shared with merchants or stored on Apple servers.

It can be used anywhere you see the Apple Pay or contactless logo. Like Google Wallet, there are no fees to use Apple Pay.

Samsung Wallet

Samsung Wallet is the digital wallet designed only for use with compatible Samsung devices, including Samsung Galaxy phones and watches. This means you can’t use it with iOS or other Android devices.

Samsung Wallet is similar to Google Wallet in its features, which include:

• Add debit/credit cards, membership and reward cards
• Add ID cards and digital car or house keys
• Store transport tickets and boarding passes
• Security - your money and data is protected by Samsung Knox security, and you’ll also sign in using biometric data linked to your Samsung Pass
• Use online and in-stores
• Use with Galaxy Watch and you can simply tap to pass through public transport barriers, or enter buildings with stored ID cards.

You can use Samsung Wallet to pay virtually everywhere you see the contactless logo.

PayPal

PayPal is different to rivals like Google Wallet, as it’s more of a payment app than a digital wallet. But if your PayPal account is linked to your bank account and cards, you can use the app for both in-person payments and online shopping.

It’s a little less easy and convenient than other mobile wallets though. Instead of simply tapping to pay with your phone, you’ll need to open the PayPal app and scan the retailer’s QR code - this should be displayed at the till if PayPal payments are accepted there. You also can’t store tickets, passes or loyalty cards in the app.

Other features of the PayPal app include:

• Shop online - PayPal is widely accepted as a payment method
• Scan retailer QR codes to pay in person
• Add cards and bank accounts
• Pay in 3 on eligible purchases, spreading the cost of a purchase over three instalments
• Track eligible packages in the app, even if you didn’t use PayPal to pay for them.
• Send and receive money, including internationally
• Personalise payment requests sent to friends
• Security - PayPal uses data encryption and has Buyer Protection policies.

It’s free to use the PayPal app and for domestic payments, although there are fees if you use to spend in foreign currencies abroad.² You’ll need to open a free PayPal account in order to get started.

Curve

Lastly, we have Curve. The Curve Wallet is an app which lets you link together all of your payment cards (and PayPal account too) into one card, the Curve Card. You can choose a preferred payment card in the app, and this will be the one used when you pay either with your Curve Wallet or physical Curve card.

Features of Curve include:

• Earn cashback from selected brands
• Switch payments between cards
• No foreign transaction fees when you use cards abroad
• ‘Anti-Embarrassment Mode’, where a backup card is automatically selected if a payment is declined
• Pay with a credit card in places that credit cards aren’t accepted (as you’ll be paying with a Curve card)
• Curve Flex, allowing you to spread the cost of purchases with smaller monthly instalments
• Security - Curve uses multi-factor authentication along with financial services industry-standard encryption to protect your money.

There is a free Curve plan, but this only lets you link 3 cards. You’ll get more cards, more features and perks with a paid plan - these cost from £5.99 to £17.99 a month.³

Curve can be used with any compatible device, and it should work virtually anywhere that contactless payments are accepted.

And that’s it - our roundup of the best digital wallets in the UK right now. We’ve covered all the big names, along with the features they offer and which devices they can be used on.

You should be all set to compare options and choose the right digital wallet for you.

And don’t forget that if you open a Wise account, you can add your Wise card and virtual cards to your preferred mobile wallet app. This makes it even easier to spend like a local, wherever you are in the world.

Sign up with Wise today 💰

Sources used:

Sources last checked on date: 01-Nov-2024