6 reasons why I switched to a digital wallet, and you should too (2024)

Most smartphones offer digital wallets which allow you to add your credit cards, debit cards, event passes, reward cards, and more, all in one location. Despite the convenience of digital wallets, some people still prefer to use a physical wallet -- not Gen Z though.

Also:How New York's new digital driver licenses work: TSA , privacy features, and more

The New York Times published an article headlined, "The Youths Have Spoken: Wallets Are Uncool. Go Digital," which deep dives into how younger generations have ditched physical wallets for digital ones. A survey cited in the article asked 2,501 American consumers about digital payments and found that 79% of GenZ respondents use digital wallets, compared to a mere 26% of baby boomers and seniors who do.

As a fellow Gen Zer, I too forgo bringing my physical wallet with me most of the time, including on my way to the office this very morning. So what are the perks of converting to a digital wallet? I rounded up a few of them below for you.

1. No bulk

The first is the most obvious: you get to reduce the physical bulk in your pocket or purse by replacing it with an invisible, digital version. This not only helps me avoid carrying a heavy wallet but also helps me stay more organized.

Also: Google Wallet now supports 40 more banks

We have all tried to pull out one card from our wallets and had several others come out instead. With a digital wallet, you can see the face of all your cards clearly displayed on your phone's screen and easily select the one you want. It's also nice when you go to the gym not to have to lug a physical wallet from machine to machine or worry about its safety in a locker.

2. Quicker, easier transactions

In the day and age we live in, your phone is always readily accessible. Whether in your hand, pocket, or top of your purse, it's never far away. This means that when checking out, hopping on a bus, or entering a busy concert venue, you can complete a transaction more quickly with your phone than if you take the time to take your card out of your wallet or purse.

For example, on NYC MTA buses, the operator says that buses will move quicker when everyone uses OMNY, the contactless fare payment system for public transportation in the New York Region. The OMNY website even says it's trying to phase out physical Metro Cards.

3. Forget the stress of forgetting

In the past, if you forgot your wallet, you would be limited to the cash you had in your pocket or would have no way of making any purchases. This situation can be especially dire when emergencies arise, and you need an insurance card or payment method, which can now be found in your digital wallet.

Now, with digital wallets, even if you forget your wallet, you have a backup option that can complete all of your transactions right from your phone. This eliminates the stress of misplacing your wallet, especially if you are someone like me who likes to switch out purses constantly and sometimes forgets to switch out wallets, too.

4. Stolen or lost wallet is not a concern

If someone picks up your credit card from the ground or steals it directly off your person, nothing stops them from using it until you call the bank to have the card canceled -- and that's if you even realize it's missing. However, the likelihood of your phone getting stolen is lower since most people, like myself, are hyper-aware of where their phone is at all times.

Also: It's 2030, and digital wallets have replaced every card in our purses and pockets

Even if your phone were stolen, you need to enter some form of verification to use your digital wallet, which the thief would not have. For example, before making a transaction on my iPhone, I have to double-click the lock button and either show my face or physically enter my passcode to fulfill the payment.

5. More easily track your expenses

When you use your digital wallet, you can view all of your added card transactions within the wallet without visiting your bank account's website or individual app. This makes it easier to track expenses because you can view all your card transactions in one place, even if they span different banks.

Also: I tested the best Mint alternatives, and this is my new preferred money app

Additionally, you will immediately be notified of how much you were charged on your phone. Not only is this convenient for tracking purposes, but it also helps identify immediately whether there was a mistake with your transaction. For example, if a waiter clocked in the wrong tip or the item you thought was on sale wasn't, instead of potentially not noticing until later, you'll see the charge immediately in the notification.

6. In some states, you can even use it to store your ID

Many states have launched programs supporting digital driver's licenses, allowing users to store their ID digitally in their phone's wallet. The value here is the same as above: you don't have to worry about forgetting or having your ID stolen, and you can have your ID readily accessible with you whenever you need it without unnecessary fumbling.

Also:How to use Apple Pay in stores and online

It can even be used at TSA, helping you bypass the dread of being unable to pull your ID Out fast enough to show the TSA officer while also juggling multiple pieces of luggage. The list of states that support digital IDs is growing, with participating states currently including:

• Arizona
• California
• Colorado
• Georgia
• Iowa
• Maryland
• New York
• Louisiana
• Utah

There are some differences in how to use it, as well as where to access the ID on your phone, depending on the state. The TSA's website includes a full list of the participating states, as well as where the ID can be accessed by users depending on the state.

Signing up and getting started is easy

Both Android phones and iPhones have native digital wallets -- Google Wallet and Apple Wallet -- and they are very easy to use. To add a card, all you have to do is enter your card details and follow the card-specific approval instructions, which may include verifying you're the account holder signing into your bank account or even calling the bank.

But what about my phone's battery?

When thinking of switching to a digital wallet, your biggest worry might be running out of battery power on your phone. Even if you don't use it as a digital wallet, this can be a disaster because you still can't access important resources like making emergency phone calls or accessing a GPS if lost.

Also: The best power banks of 2024

To circumvent all of this unnecessary drama, I make sure to always carry either a power bank or wired charger with me wherever I go. Nowadays, power banks don't have to be big, with one of my personal favorites being no bigger than a lipstick case.

Where do I carry my ID?

Carrying your driver's license is important for identification purposes and performing tasks such as driving a vehicle or purchasing alcohol. Unfortunately, as mentioned above, not all states have adopted support for adding your driver's license to your digital wallet. That means that most of us have to figure out how to carry our physical IDs with us, even if we use a digital wallet.

Also: 5 reasons why I always use a MagSafe phone case (and you should too)

My solution is a phone wallet. I use the MOFT Magnetic Wallet Standwhich comfortably fits my ID, adds no bulk to my phone, and can be easily removed when I don't need to bring my ID where I am going. You can even fit an emergency physical credit card in the phone wallet, which is still much thinner than your average wallet. You are also less likely to forget your ID this way because, as mentioned before, our phones have essentially become an extension of us.