Contents of the article
- What is an electronic wallet and how does it work?
- What electronic wallets are used for payments
- What you need to use an electronic wallet
- How to add a card to your digital wallet
- How to pay with an electronic wallet in a store
- How to pay with an electronic wallet online
- Comparison of card and phone payments
- How an electronic wallet is convenient in everyday life
- Is it safe to use an electronic wallet?
- Conclusion
- FAQ
The financial habits of people around the world and in Ukraine are changing: while just a few years ago it was difficult to imagine making daily payments without cash or a plastic bank card, today more and more people are paying with their phones. This is how electronic wallets work — services that allow you to use your bank card in digital format. In this case, the phone replaces plastic, but the money is debited from the same card and the same account, without opening new contracts or separate financial products.
An electronic wallet is not a bank and does not open a new account. It is a technological tool that makes payments faster, easier, and more secure, while leaving all banking terms and conditions unchanged for the customer.
What is an electronic wallet and how does it work?
An electronic wallet is an application or a service built into a smartphone where you store your bank cards in digital form. When you add a card, a digital version of it is created, which can be used instead of the physical card for mobile payments in stores and online.
Most users know these services as Apple Pay or Google Pay — they are mainly used for contactless payments via phone.
Mobile payments use tokenization technology: a digital token is used instead of a card number. Therefore, the seller, website, or service does not receive your actual card details, but only works with encrypted data. This ensures secure payment even if the data is intercepted.
Electronic wallets support Visa and Mastercard international payment system cards, so the authorization rules, limits, and transaction controls remain the same as for a regular card.
What electronic wallets are used for payments
In Ukraine, the following electronic wallets are most commonly used for daily payments by phone:
- Google Wallet — for most Android smartphones;
- Apple Wallet — for iPhone and Apple Watch;
- Other device manufacturer services: Samsung Wallet, Garmin Pay, Xiaomi Pay.
These services are supported by many banks, allowing you to add cards from different banks and use them for payments.
What you need to use an electronic wallet
You don't need any special knowledge or a separate contract to get started. All you need are the basics:
- A smartphone with contactless payment (NFC) functionality — most smartphones released after 2018 already support this technology;
- an installed electronic wallet (Google Wallet, Apple Wallet, or another compatible service);
- a bank card that you add to your wallet.
Once configured, your phone can be used as a regular contactless card.
How to add a card to your digital wallet
Set up your digital wallet once, and then use it as your usual payment method without re-entering your details.
The process usually looks like this:
- Open your wallet app. On iPhone, this is Apple Wallet, on Android — Google Wallet or the manufacturer's equivalent service. This app is usually already installed on your phone as a standard program. If it is not there, download it from the official app store.
- Select Add Card. Find the Add Card option or a similar button.
- Enter the details manually or scan the card with your camera. Follow the prompts on the screen.
- Pass the bank verification. Enter the one-time code that will be sent to you in a message or in the bank's mobile app.
After confirmation, the card will appear in your e-wallet and will be ready for use for contactless and online payments. You can also add all your bank cards from different banks to the app and set a primary card for payments.
How to pay with an electronic wallet in a store
Paying at a point of sale is almost the same as using a contactless card, but it is done via your phone.
Here's how:
- Before your first payment, make sure that NFC (contactless payment) is enabled in your phone settings.
- Unlock your smartphone.
- Hold it up to the contactless terminal.
- Wait for the payment confirmation notification on the terminal and in your app.
How to pay with an electronic wallet online
Online payments are one of the most convenient options. You can pay for goods, services, tickets, and subscriptions.
- When placing an order on a website or in an app, find the Apple Pay, Google Pay, or GPay button (the name depends on the device). This button usually appears immediately among the payment methods next to the card.
- After clicking, the system will automatically open the wallet window on your phone.
- Confirm the payment with your fingerprint, face, or code.
Comparison of card and phone payments
| Criterion | Bank Card | Electronic Wallet on a Phone |
| What is used for payment | Physical plastic card | Smartphone or another device with a wallet |
| What data is transmitted during contactless payment in a store | Secure data exchange of the payment system is used | A digital token is used — the real card number is not disclosed |
| Payment confirmation in a store | For small amounts — without confirmation; for larger amounts — PIN code | The phone must be unlocked; owner confirmation is usually required (biometrics or access code) |
| Data entry during online payment | The card number, expiration date, and CVV code must be entered manually | Data is automatically retrieved through the wallet service; manual entry of details is not required |
| Risk of card data disclosure during online payments | Higher, since card details are entered on websites | Lower, because the real card number is not transmitted to websites |
| Number of cards for use | Several cards need to be carried separately | Many cards from different banks can be stored in the wallet and quickly selected |
| Additional digital capabilities | Used mainly for payments | Tickets, boarding passes, passes, and loyalty cards can be stored |
How an electronic wallet is convenient in everyday life
The advantages are especially noticeable in everyday situations when speed and simplicity are important. Your phone is usually at hand, so you can pay without having to search for your wallet or card.
An electronic wallet helps you:
- pay quickly in a store — just unlock your phone and hold it up to the terminal;
- avoid entering your card number, expiration date, and CVV code when shopping online;
- store several cards from different banks and select the one you need before paying;
- keep tickets, reservations, or boarding documents in one place so you don't have to search for them among files or emails.
These are small but significant simplifications that save time and reduce the risk of errors during payment.
Is it safe to use an electronic wallet?
Many people are concerned about security: is it safe to pay by phone, and can money be stolen? Electronic wallets are designed to reduce these risks.
The basic principles of protection are as follows:
- the actual card number is not transmitted to the seller during payment.
- you confirm each transaction directly on your phone.
- payment is not possible without unlocking the phone.
- data is stored in a secure part of the device.
- if you lose your phone, it can be blocked remotely.
No one can make a payment without you and your device. All transactions are displayed in the bank in the same way as regular card payments.
Conclusion
Electronic wallets are a convenient and secure way to use your bank card on your phone. They simplify daily payments, facilitate online payments, help store digital documents, and add an extra layer of security. Once set up, an electronic wallet becomes an intuitive and practical tool for making payments in stores and online.
FAQ
Do I need the internet to pay in a store?
No, you don't usually need the internet to pay by phone in stores. When you hold your phone up to the payment terminal, the data is transferred via contactless NFC technology without connecting to the network.
What happens if my phone runs out of battery?
In this case, you will not be able to pay with your phone. Therefore, it is worth having a physical card with you as a backup option.
Is it safer to pay with a phone than with a card?
Yes. Secure data is used during payment, and the payment is additionally confirmed on the phone.
Can I pay with an electronic wallet without NFC?
The NFC function is mandatory for payments in physical stores: it allows your phone to exchange data with the terminal. If your phone does not have NFC, you will not be able to pay with your phone in a store. At the same time, you can pay online — NFC is not required for this.
What is the commission for paying with an electronic wallet?
The wallet service does not charge any fees. Your bank's standard terms and conditions apply, as for a regular card payment.
Which bank cards can be added to an electronic wallet?
Electronic wallets support cards from most Ukrainian and international banks that use the Visa and Mastercard payment systems. The final possibility of adding a card depends on the bank's support for a particular service.
How many cards can be added to an electronic wallet?
You can add several bank cards from different banks to your e-wallet and switch between them when making payments. The number of cards is not limited by default, but some services may have their own recommendations or restrictions depending on the device model. In any case, this is more than enough for daily payments.
How do I remove a card from my e-wallet?
You can remove a card in the e-wallet app in a few clicks. You can also block or remove it remotely if you lose your phone—in online banking or through the bank's contact center.
