What is the Difference Between a Virtual Wallet and a Virtual Debit Card?

Did you know that Outpave allows you to issue virtual debit cards? If you’ve been following our social media, the answer should be yes.  We talk about it a lot.  But what is a virtual debit card? Does it work like a virtual wallet? Are they better than a virtual wallet?

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So glad you asked.

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Let’s start with - what is a virtual debit card?

A virtual debit card is a digital version of a physical debit card. It's issued by a bank or financial platform and linked to your checking account or a prepaid balance.

Virtual debit cards function just like a traditional debit card, except they're fully digital and usually located in an app on your phone.

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Use cases include:

• Online purchases
  

• Subscriptions and recurring payments
  

• Budget control for individuals or employees
  

• Temporary use (e.g., disposable cards for one-time payments)

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Now, let’s talk about Virtual Wallets.

A virtual wallet (also called a digital wallet) is a secure app that stores your payment methods and more. Think of it as a mobile home for your debit cards, credit cards, transit passes, gift cards, and even your boarding pass.

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Popular examples:

• Apple Wallet
  

• Google Wallet
  

• PayPal
  

• Samsung Wallet

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Key features include:

• Tap-to-pay with your phone or smartwatch
  

• Store and organize multiple cards
  

• Access tickets, IDs, and loyalty programs
  

• Added security with biometrics and device encryption

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So, which one is better?

It’s not really a question of which one is better. It’s more a question of “what are you wanting to accomplish”.  Both tools serve different needs—and you can often benefit from using both.

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• Consumers can use wallets for convenience and debit cards for purchases.
  

• Businesses use virtual debit cards for employee spending with department-level controls in place.1
  

• Travelers love wallets for consolidating tickets, IDs, and payment cards in one place.

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Virtual debit cards can easily be added to a virtual wallet, making it easy for employees to make payments for projects or travel expenses. 

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Want to Learn More?

If you’re ready to learn more about the benefits a virtual debit card could have for your business, go to otupave.com.  Don’t forget to follow our social media channels for more information about how our platform can improve your finances.

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