Strategies for managing your digital wallet

When it comes to digital wallets, safety should always be your top priority. Margaret stresses the importance of ensuring that your wallet app is licensed and secure. She recommends downloading apps only from official app stores and verifying that they’re from trusted providers.

Strong, unique PINs and passwords are essential, and never sharing them is non-negotiable. For added protection, activate two-factor authentication (2FA) either through one-time passwords (OTPs) or biometric verification.

“Be cautious of unsolicited calls or texts pretending to be from your wallet provider. Always verify messages directly through the official app,” Margaret warns.

For maximum financial safety, it’s also important to avoid keeping large sums of money in your digital wallet. While these apps often offer savings features, they’re not the best option for long-term storage, as they typically don’t provide the best returns. Instead, consider keeping smaller amounts for daily or weekly transactions and storing larger savings, emergency funds, or planned purchases in a money market fund, bank account, or Sacco, where your money is safer and can even earn interest.

Among the most common security threats to watch for are SIM swap fraud, phishing attacks, and stolen phone access, especially if your PIN is compromised. To reduce risks, Margaret suggests establishing healthy habits, such as limiting wallet top-ups to what you need for the week, reviewing your transactions regularly, and using any in-app limits that may be available.

Additionally, it’s a good idea to keep receipts or screenshots of significant payments to stay on top of your spending. Segmenting your wallets for different purposes, such as separating funds for bills and leisure, can also help curb the temptation to overspend, while helping you prioritise important financial goals. Margaret also advises caution with “Buy Now, Pay Later” options and instant credit, which are easily accessible within many digital wallets. While these features offer immediate gratification, they often come with high-interest rates, hidden fees, and can quickly lead to debt if not used responsibly.

“If you must borrow, make sure it’s something you can comfortably repay,” she adds.

While digital wallets have made transactions quicker and more convenient, they’ve also made it easier to overspend. The tactile feeling of cash is gone, and the act of tapping or swiping to pay can make us lose track of how much we’re actually spending.

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As Margaret puts it, “Digital wallets can encourage invisible spending, leading to impulse purchases and a false sense of financial freedom. People often underestimate how much they’re spending, which can normalise debt and make it harder to track their true financial picture.”

By staying vigilant and following these expert tips, you can unlock the full potential of your digital wallet while keeping your finances safe, secure, and under control.