Why Digital Payments are Safer
Digital payments are safer because your real card number never reaches the merchant. Apple Pay, Google Pay and virtual cards send a stand-in number and a one-time code instead, so there's nothing useful for a skimmer, a fake terminal or a hacked database to steal.
What counts as a digital payment?
Tapping your phone or smartwatch with Apple Pay or Google Pay in a shop counts. So do virtual cards and cards saved for online checkout. None of them depend on the plastic card in your wallet. They use encrypted data and temporary codes to complete the payment.
If you've ever paid with your phone, or with a card you weren't physically holding, you've already used one.
How Apple Pay and Google Pay work
When you add a card to Apple Pay or Google Pay, your actual card number isn't stored on the device or shared with merchants. Your phone creates a virtual version of the card that's unique to that device, and each transaction is completed with a one-time security code. You also confirm every payment with Face ID, Touch ID or a passcode.
So even if someone intercepted the payment data, they couldn't reuse it. The code only works for that one transaction.
Where card fraud happens, and how digital payments block it
Skimming at ATMs or petrol kiosks
A fraudster fits a small device into the card reader that copies your card details, sometimes with a hidden camera to catch your PIN. With a digital wallet you don't insert or swipe anything, so the device has nothing to copy.
Fake terminals in shops
Occasionally a payment terminal gets swapped for a fake one built to steal card data. Apple Pay and Google Pay don't transmit your real card number, so a tampered terminal still doesn't get it.
Online data breaches
You save your card on a shopping site, and months later the site is hacked and your card number ends up for sale. If you'd paid with a virtual card or Apple Pay, the merchant would never have stored your real details. Many virtual cards can also expire after a single use.
What about online payments?
Online checkout has improved too. Most reputable merchants now support 3D Secure (3DS), which asks you to enter a one-time password (OTP) or approve the payment in your banking app. Someone who has your card number still can't finish the purchase without that step.
Digital payments vs physical cards
| 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 |
Getting started
Most people have dealt with card fraud at some point: a strange charge on the statement, then the hassle of cancelling and waiting for a new card. Hiding your real card number, confirming each payment with your face, fingerprint or passcode, and using codes that expire after one use all make that far less likely. The more of your spending goes through a digital wallet or virtual card, the less there is to steal.
If you want to spend crypto this way, add a Based Visa card to Apple Pay for tap-to-pay at millions of merchants worldwide. How to add your card to Apple Pay takes you through setup. And if a charge does slip through, chargeback vs refund explains how to get your money back.
Card signups reopen in November 2026
Signups for the Based Visa card are paused for now. See what each card tier includes before they reopen.