Digital Wallets and Peer-to-Peer (P2P) Payments

What is a digital wallet?

• A physical wallet for cash

• A secure app or feature that stores your payment information electronically

• A type of credit card

• A bank account

Which of the following is NOT an example of a digital wallet?

• Apple Pay

• Google Wallet

• PayPal

• Credit Card

Fill in the blank: Digital wallets use ________ and tokenization to protect your card number.

• encryption

• compression

• fragmentation

• duplication

Which of the following is a pro of digital wallets?

• Slow and inconvenient

• Contactless and hygienic

• Less secure

• Requires cash

Digital wallets require biometric security (Face ID or fingerprint) or a PIN to connect to your bank account or card provider.

• True

• False

Which of the following is a con of digital wallets?

• Organized and easy to use

• Limited acceptance at smaller stores

• Some track spending or send alerts

• All of the above

Which of the following is a risk associated with digital wallets?

• Requires a working phone or battery

• Privacy concerns and data tracking

• Risk if account or device is compromised

• Compatibility issues across devices

Fill in the blank: Digital wallets may have ________ concerns and data tracking.

• privacy

• design

• color

• speed

Digital wallets are always accepted at smaller stores.

• True

• False

What is a peer-to-peer (P2P) payment?

• A digital money transfer directly between individuals using an app that links to your bank, debit card, or credit card and allows instant transfers.

• A payment made only through physical cash exchange at a bank branch.

• A transaction that requires a third-party financial institution to process and hold funds for several days.

• A payment method exclusive to business-to-business transactions.