The age of the digital wallet is here. You no longer need your physical wallet with you everywhere you go. Now your smartphone can double as your credit and debit cards. In just the last few years, digital wallets went from an interesting, skeptical concept to a reality. But how does Samsung Pay work and how do you use it? Here is a look at Samsung's digital wallet and some of its hidden features.

Samsung Pay Setup

Digital wallets let you swipe your phone over any compatible card reader in place of your card. The Samsung Pay app comes pre-installed on all Samsung Galaxy S7 Edge phones, but it will need to be set up.

Open the app and sign in with your Samsung username and password. Follow the prompts presented by the app and enable fingerprint security. If your phone is brand new, you'll need to scan your fingerprint onto the print reader. Make sure you place your fingerprint on the reader in every way you can imagine pressing the button, this way the reader will recognize your fingerprint from a variety of angles.

After your security is in place, the app will ask you to take a picture of the cards you wish to use from your phone. You'll also provide additional sensitive information manually. Then validate the card via text or email, or call your bank to complete the setup.

NFC-enabled ATM

Near-field communication (NFC) is the technology that allows your smartphone to be capable of using Samsung Pay. It's how your phone communicates your card number with a card machine at a retailer, but now NFC-enabled ATMs have also hit the streets. Though cash isn't as necessary as it once was, digital wallet users still need a way to acquire cash from ATMs. So far Bank of America is the only bank with NFC-enabled ATMs, but Chase and Wells Fargo are expected to launch NFC-enabled ATMs soon.

Special Features

Samsung Pay enters a market that is saturated with competitors such as Apple Pay, Android Pay and Google Wallet. Because of this, Samsung rewards users who pick their product over one of its competitors with its High Five Referral Rewards program. Each time you refer someone to Samsung Pay and they make their first purchase, you'll be gifted $5. This may not seem like much, but if you have 30 friends or family members, that's an extra $150 you can spend at any merchant who accepts Visa debit and Samsung Pay.

You can also add all of your membership and loyalty cards on the Samsung Pay app. All of those supermarket cards can finally be left at home. You enter these cards the same way you entered your debit or credit cards, by taking a photo. You can also buy and manage your gift cards from the app, which cuts down on what you carry.

Everyone has bills. With Samsung Pay you can track and pay all of them from one central app, which cuts down on the what you must keep track of each month. With all of these bells and whistles, Samsung Pay is a top competitor in the digital wallet age.