Digital Wallets Offer Security Edge as Apple Wallet and Google Wallet Differ

According to Engadget, setting up most digital wallets requires authentication to be enabled. On an iPhone, a user must have a lock screen passcode enabled before setting up Apple Pay. Every transaction is confirmed with the same security used for the lock screen. Face ID or Touch ID can make this more convenient, with the passcode acting as a fallback in most cases. The Apple Watch, which lacks a biometric sensor for authentication, must have its own PIN configured to use Apple Pay. Once the watch is placed on the wrist and the PIN is entered, Apple Pay is ready until the watch is removed, after which the passcode is required again. Engadget said that unless a passcode is extremely weak, the risk of someone using the cards without the owner's knowledge is nearly zero, compared with regular cards that often require no authentication for small purchases.

Digital wallets also use tokenization, Engadget reported. Payments do not use the actual card number. The wallet stores a unique number for that card, so the merchant never sees the card's real details. Each transaction happens through a one-time code that is useless for anything else if it is stolen. Engadget said this makes it very unlikely that digital cards could be used by someone else. Digital wallets also reduce the chance of card skimming because the user does not have to insert a card into a scanner. Fake touchpoints for digital payments are a possible threat, but they are not common in practice, the report said.

If a phone is lost or stolen, Engadget said, services such as Google's Find Hub or Apple's Find My can help locate the device, even when it is off in some cases, and can wipe digital wallet data if needed. This only disables the digital copies of the cards on the phone, so the user does not have to call the bank to cancel cards and wait for new ones. Modern physical cards are not wildly insecure, according to Engadget: chip readers and tap-to-pay use tokenization and a one-time code instead of transmitting real card details. But with digital wallets, there is no temptation to fall back to the less secure magnetic stripe reader if a store does not take chip cards or if more secure methods fail. Digital wallets also add convenience. Users can leave cards, and in many cases physical documents such as ID, at home. People who use different cards for various rewards do not have to stuff them all into one wallet, and there is no risk of losing them or having them stolen. Engadget said that if a user has not already set up a digital wallet, it is worth adding at least one card, because mobile payments are accepted in many stores and can be used in apps and online.

In a separate comparison published the same day, Engadget said Apple Wallet and Google Wallet serve similar purposes but have subtle differences. The Wallet apps store payment cards, tickets and other everyday passes on a phone. Apple Pay and Google Pay handle the payments, but the Wallet apps store everything. The names are often used interchangeably even though they refer to different parts of a connected process. A user can pay in-store and online as long as the retailer accepts mobile payments, the card's payment network is supported and the card provider supports the wallet service. Which wallet a person uses is dictated by whether they own an iPhone or an Android phone. Both support credit and debit cards, loyalty cards, gift cards, boarding passes, event tickets, train or bus tickets, NFC-supported passes such as digital hotel or car keys, and workplace access cards, depending on location and whether the pass provider supports digital wallets.

Adding payment cards is straightforward, according to Engadget. In Apple Wallet, the user taps the plus button and chooses Debit or Credit Card. In Google Wallet, the user taps Add to Wallet and then Payment card, follows prompts and verifies with the bank or card provider. If the issuing entity supports the function, the card is set up for use. Differences appear in support for other passes. Apple Wallet expects items to officially support digital wallets, and users usually see an Add to Apple Wallet button in emails, apps or similar places. That means the Wallet app can support specific features. For example, if an airline supports it, a boarding pass automatically updates with gate numbers and also appears on Apple Watch. The experience is uniform, with a strict Apple template for passes and cards. In iOS 27, users can add custom passes for otherwise unsupported items. Google Wallet has been more flexible for longer. It offers official Add to Google Wallet passes and can import tickets and boarding passes from a Gmail inbox. It also has an Everything Else option for digitizing photos of random cards and passes in a wallet, making it easy to store a parking, library or gym card. Those items lack live updates, but the support means a user can move to a fully digital setup, even for analog items.

Engadget said both apps are supposed to offer seamless experiences. Google Wallet is accessible through a web interface, while Apple Wallet is not. To pay in person with an iPhone that has Face ID, a user normally double-clicks the side button, authenticates with face or passcode, then holds the phone near the reader. Older iPhones use Touch ID. With Google Wallet, a user does not need to press a button; they unlock the phone and hold it near the contactless reader. The default card handles the payment, and the user must open the app to choose another card. With Apple Wallet, a user can pick a card before paying. There are customization options. If an iPhone has the Action button, a Shortcut can open Wallet, although double-pressing the side button already does this. Google Wallet supports shortcuts too, including a double-press of the power button on certain Pixel phones. Users can also pay from an Apple Watch or a compatible NFC-enabled Wear OS watch by double-clicking the side button on Apple Watch or opening Google Wallet on Wear OS and holding the watch near the reader. Both apps can make transit payments without authentication on supported buses, trains or trams. Apple Wallet's Express Mode lets users use eligible cards without waking or unlocking an iPhone, while Google Wallet's Express Pay also makes transit payments without verification, though the phone screen needs to be on. Engadget said Apple has an advantage: on supported iPhones, eligible Express Cards can work for up to five hours after the battery runs out, though this does not work if the user turns off the phone. The comparison also noted that digital ID support depends on where a user lives and is more complicated.