Consumers are turning to 'digital wallets'

Posted: Updated:
(Source: 3TV/CBS 5) (Source: 3TV/CBS 5)
Being a makeup artist is just one way Claudine Gallagher earns her income. But her payment doesn’t come in cash or check. She counts on a couple apps when it’s time for customers to settle up. (Source: 3TV/CBS 5) Being a makeup artist is just one way Claudine Gallagher earns her income. But her payment doesn’t come in cash or check. She counts on a couple apps when it’s time for customers to settle up. (Source: 3TV/CBS 5)
(3 ON YOUR SIDE) -

Being a makeup artist is just one way Claudine Gallagher earns her income. But her payment doesn’t come in cash or check. She counts on a couple apps when it’s time for customers to settle up.

“It's 2018. I don't know anyone who does checks anymore. Sorry Mom and Dad. But cash is, is a lot more hassle because there's really no paper trail.”

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By 2020, people are expected to make about $726 billion in purchases using digital wallets such as Venmo, Zelle, PayPal and Apple Pay. Mike Boynton is with the Better Business Bureau.

“We want speed and convenience, and sometimes there's a price to pay for that.”

In this case, it may be security. These apps are typically connected to your bank account, debit or credit card. 

And Boynton says now, scammers are finding creative ways to separate you from our money. For example, they may connect your stolen credit card to their digital wallet, then look for people selling big ticket items. They get the goods. You are out your money.

Or as Boynton adds; “Perhaps they'll pay for an item. You, as a seller in good faith, take that mobile app payment, but by the time you ship it, the buyer can cancel that payment.”

Another risk according to Boynton: many digital wallets don’t offer the same fraud protections that come with a credit card.

“There are some mobile apps, that if you have fraud, they will not protect you.”

Gallagher says she has her own way of playing it safe.

“I always, always, always, make sure the digital payment clears before I even do the service for them.”

Beyond that, she’s sold.

“I really believe that this is the way that things are going.”

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Warren TrentWarren Trent is currently employed by KTVK/KPHO-TV in Phoenix, Arizona as an investigative and consumer producer for 3 On Your Side, a unit that earned a 2013 Rocky Mountain Emmy nomination for a report on expired tires and a 2015 an Emmy nomination for a report called "Mattress Madness."

Click to learn more about Warren.

Warren Trent
3 On Your Side

Warren previously did on-air reporting for the KTVK/KPHO-TV “Varsity Zone” sports show. Warren’s versatility continues to shine as he has worked on the assignment desk, as a news writer and as a field producer.

Warren is a seasoned television journalist whose progressive TV career began at 6ABC-TV in Philadelphia with "Action News," a favorite choice for millions of viewers for decades. While at 6ABC, Warren advanced through the ranks in unprecedented success as a sound technician, an assignment editor, a video editor, a sports producer, a bureau chief, a public affairs specialist and ultimately as programming producer. In his final role at 6ABC, Warren produced a top-rated, award-winning television news magazine show and also lead producer for the "High School Huddle" sports show. Warren has also been assigned to cover both global and national news stories.

In addition to broadcasting, Warren enjoys contributing to society as a mentor and volunteer. He is president of the Arizona Association of Black Journalists and a member of the Alpha Phi Alpha Fraternity.

Warren has also volunteered by serving on the board of directors for Image and Attitude, a New Jersey-based nonprofit specializing in self-sufficiency for women and has also served on the board for The VIP Project, which supports autism awareness.

Warren says it is an honor to serve on the NATAS Board of Governors to work with a diverse group of professionals dedicated to honoring and assisting current and future journalists.

And one little-known fact about Warren is that he taught himself how to juggle as a hobby.

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