Why Digital Payments are Safer

Digital payments don’t just make life easier. They keep your money safer, too.
Whether you're tapping your phone at checkout or shopping online, tools like Apple Pay, Google Pay, and virtual cards offer stronger protections than traditional plastic cards. Let’s break down how they work and why they’re safer in everyday life.

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What Counts as a Digital Payment?

Digital payments include Apple Pay and Google Pay when you tap your phone or smartwatch in-store, as well as virtual cards and saved cards used for online purchases.
These methods don’t rely on the plastic card in your wallet. Instead, they use encrypted data and temporary codes to complete payments securely.

If you've ever paid using your phone or used a card that isn’t physically in your hand, you’ve already experienced digital payments.

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How Apple Pay and Google Pay Work

When you add a card to Apple Pay or Google Pay, your actual card number is never stored on the device or shared with merchants.
Instead, your phone creates a virtual version of your card, unique to your device, and every transaction is completed with a one-time security code.
You’ll also need to confirm the payment with Face ID, Touch ID, or a passcode, which adds an extra layer of protection.

Even if someone could intercept the data, it would be useless. The code works for that transaction only.

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When Fraud Happens (and How Digital Payments Help)

Here are a few common ways fraud can happen, and why digital payments stop them in their tracks.

Skimming at ATMs or petrol kiosks

A fraudster installs a small device in the card reader that copies your card info. A hidden camera might even record your PIN.
With digital wallets, you’re not inserting or swiping anything, so there’s no way for these devices to capture your data.

Fake terminals in stores

Sometimes, bad actors swap out a payment terminal for a fake one that steals card info.
But Apple Pay and Google Pay don’t transmit your actual card number. Even if the terminal is tampered with, your details are protected.

Online data breaches

You shop online, save your card to your account, and months later the site gets hacked. Your card number ends up on the dark web.
If you had used a virtual card or Apple Pay online, the merchant wouldn’t have stored your real details in the first place, and many virtual cards can expire after just one use.

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What About Online Transactions?

Online payments have improved, too.
Most reputable merchants now support 3D Secure (3DS), which prompts you to enter a one-time password (OTP) or approve the transaction through your banking app.
That means even if someone has your card number, they can’t complete the purchase without that extra verification step.

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Digital Payments vs Physical Cards

Here’s a quick comparison to show how they stack up:

Feature	Physical Card	Apple/Google Pay	Online with 3DS
Card number exposed	Yes	No	No
One-time transaction codes	No	Yes	Yes (OTP)
Biometric or OTP verification	No	Yes	Yes
Risk of card skimming	High	None	None
Can be used without your input	Yes	No	No

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Final Thoughts

Most people have had to deal with card fraud at some point, whether it’s seeing a weird charge on your statement or going through the hassle of cancelling your card.
Digital payments make those situations far less likely by keeping your real card details hidden, requiring biometric or passcode verification for every transaction, and generating one-time codes that are useless to anyone who intercepts them. The more you rely on digital wallets and virtual cards, the smaller your exposure to the kinds of fraud that have plagued physical cards for decades. If you are looking for a convenient way to start using digital payments with your crypto, consider adding a Based Visa card to Apple Pay for tap-to-pay security at millions of merchants worldwide.