As reported by Forrester, global retail e-commerce sales are expected to reach $6.8 trillion by 2028, up from $4.4 trillion in 2023^[1]. Such massive growth in online shopping has motivated cybercriminals to become more sophisticated in obtaining sensitive personal information, prompting consumers to seek out discreet payment methods to protect their financial details.

In this guide, we'll explore anonymous payment methods in-depth by answering the following questions:

1. What are anonymous payment methods?
2. How discreet are anonymous payment options?
3. What are some popular payment methods that provide a degree of anonymity?

What Are Anonymous Payment Methods?

When purchasing an item or service online, the merchant will usually require you to provide personal information, such as your name, address, and debit or credit card number. While this information is necessary for completing the transaction, sharing it leaves you vulnerable to potential security threats, including:

• Identity theft
• Card fraud
• Unsolicited marketing and spam emails

Anonymous payment methods allow you to limit the personal information you reveal during purchases, offering a higher degree of privacy and security.

How Discreet Are Anonymous Payment Options?  

Anonymous payment options fall under two major categories—partially and fully anonymous:

1. Partially anonymous—These online payment methods prevent the merchant from seeing information such as your name, card number, and address. However, parties such as financial institutions or apps that facilitate these payments might have access to your information and keep transaction logs.
2. Fully anonymous—These methods utilize alternative forms of payment that do not have any personally identifiable information attached to them. Due to regulatory reasons, finding fully anonymous online payment methods isn't easy. For in-store purchases, however, cash remains the safest anonymous payment method.

How To Make Anonymous Payments Online—5 Methods To Consider

Below are five payment methods you can use to boost your privacy when shopping online:

1. Prepaid debit cards
2. Preloaded gift cards
3. Cryptocurrencies
4. Digital wallets
5. Virtual cards

Prepaid Debit Cards

Unlike traditional credit and debit cards, prepaid debit cards are not linked to a bank account. Instead, they come with a certain amount of money, and once the funds are depleted, you can reload them for future transactions.

Some prepaid debit cards require registration, while others offer it as an option. Registering your prepaid debit card has certain benefits, such as increased protection against fraud and theft^[2] or an increased loading limit. 

You may have to provide personal information when registering a prepaid card, but these details are not necessarily linked to the card's use. They are typically used to verify your identity when activating and reloading the card. 

If you opt not to register your prepaid debit card, you might have fewer protections and a lower loading limit, but you'll also restrict the amount of information you share with third parties.

Prepaid cards are available at select retailers, banks, and online. Using them entails fees—you can be charged for activation, transactions, and even inactivity.

Preloaded Gift Cards

Gift cards function similarly to prepaid debit cards but are not reloadable. They are available for purchase with a set value—usually from $10 to $500—and can be used for online or in-store purchases. 

Because gift cards do not require registration, they offer more anonymity. You can purchase gift cards online or at a physical store and use them without revealing any personal information.

There are two types of gift cards—general and store-specific. General gift cards can be used at any merchant that accepts gift cards from the card's payment network. Store-specific gift cards are tied to a particular retailer or brand and cannot be used elsewhere.

Keep in mind that gift cards have fees similar to prepaid debit cards.

Cryptocurrencies

Cryptocurrencies are digital currencies that use blockchain technology—a ledger that records and verifies transactions—to facilitate secure and anonymous transactions. Unlike traditional currencies, cryptocurrencies are decentralized, which means they are not controlled by a central authority like a government or bank. 

Bitcoin is arguably the most popular cryptocurrency, but there are other options you can choose, including:

• Ethereum (ETH)
• Solana (SOL)
• Binance Coin (BNB)
• Monero (XMR)
• TRON (TRX)
• Dogecoin (DOGE)
• Shiba Inu (SHIB)

Cryptocurrency transactions are pseudo-anonymous, meaning they do not reveal any personal information about the people involved, such as names or addresses. However, the transactions are publicly recorded on the blockchain, and it might be possible to connect your digital wallet with the information you provided when you used a cryptocurrency exchange, for example. 

Using cryptocurrencies for online payments comes with some downsides:

• High volatility—Cryptocurrency values can fluctuate greatly, making it risky.
• Limited acceptance—Although more businesses are starting to allow purchases with cryptocurrencies, they're still not widely accepted as a form of payment.
• Learning curve—If you're not familiar with cryptocurrencies, you may find setting up a digital wallet and navigating exchanges challenging.

Digital Wallets

Digital wallets, or e-wallets, are virtual platforms that store your payment information and allow you to make purchases online without revealing your credit or debit card numbers and other personal information. For every transaction, digital wallets generate a unique token that acts as a one-time substitute for your sensitive financial data. However, you will usually have to provide personal information to register with the service, and they might keep transaction logs.

You can use digital wallets in-store by scanning a QR code at the checkout or making a contactless payment. For online purchases, you only need to select the digital wallet as your payment method and authenticate the transaction with biometric data (face or fingerprint) or a passcode.  

Apple Pay and Google Pay are popular and easily accessible digital wallets, but there are other options you can choose, such as:

• Samsung Pay
• Amazon Pay
• Walmart Pay

You can also set real-time transaction notifications and track your spending on e-wallets, enhancing the security of your financial management. Some downsides of using e-wallets include limited acceptance, potential fees, and compatibility issues with older devices.

Virtual Cards

Virtual cards are a more modern way to make online payments more private. They come with randomly generated card numbers that substitute your real financial information during transactions, reducing the amount of personal information exposed online. In the event of a data breach, hackers will only have access to the virtual card information and not your actual payment card numbers.

The virtual card provider will usually require your Know-Your-Customer information. They might also keep a record of your transactions for regulatory purposes and easier assistance in case of fraudulent charges.

There are two ways to obtain virtual cards:

Enjoy Secure Payments With Privacy Cards

Privacy allows you to connect a debit card or bank account to it and create virtual cards for online purchases. When you transact using a Privacy Card, Privacy will only share your virtual card's number, expiration date, and CVV, and not your personally identifiable information. Privacy also has a Private Spend Mode that lets you keep your transactions private on your funding source statement or portal.

As a PCI-DSS-compliant provider, Privacy is committed to keeping customer data safe. It uses advanced security protocols, including AES-256 encryption and firewalled servers, to protect the information you share with it. You can also use two-factor authentication to further protect your Privacy account against unauthorized access.

Privacy Card Types and Features

With Privacy, you can create three types of virtual cards:

1. Single-Use Cards—Designed for one-time purchases, these cards expire shortly after a single transaction, making them ideal for shopping at unfamiliar merchants. Even if a potential hacker manages to obtain the card information, they can't use it.
2. Merchant-Locked Cards—These cards allow recurring payments but only with a single merchant. The card will automatically decline transactions from other merchants, reducing the risk of it being used for unauthorized purchases. Merchant-Locked Cards are best suited for purchases on trusted stores and subscriptions such as Netflix, HBO Max, and Apple TV.
3. Category-Locked Cards—Unlike the Merchant-Locked Card, this card allows transactions from different merchants, but only within a specific category, such as retail, dining, or travel. Payment attempts from vendors outside the chosen category will be declined. Category Cards can help you control your spending and budget.
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Privacy lets you set spending limits and pause or close your virtual cards without affecting the funding source. These features allow you to define when and how much merchants can charge you. Privacy will decline all transactions that exceed your preset limit and block charges on a paused or closed card, reducing the risk of accidental and excessive fees.

Privacy Facilitates Easier Online Payments

Privacy makes online transactions seamless with several convenience features. You can install the Privacy App on your Android or iOS device to monitor your card activity and control your cards on the go. You'll receive real-time push notifications whenever your card is charged or declined, helping you spot unusual activities early on.

With the Privacy Browser Extension, you can create and autofill virtual cards directly on your web browser with a single click, saving you the hassle of manually entering card information every time you shop online. The extension is available on major browsers, including Chrome, Edge, Firefox, Safari, and Safari for iOS.

Privacy also integrates with 1Password, allowing you to manage your virtual cards and login credentials from a central location. You can quickly generate virtual cards directly through 1Password's browser extension, eliminating the need to switch between apps or devices.

Getting a Privacy Card—Signup Process and Pricing

Here's how to apply for a Privacy Virtual Card:

1. Visit the signup page
2. Enter the required Know Your Customer (KYC) information
3. Connect a funding source
4. Request and create your first Privacy Card
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Privacy offers four monthly plans:

References

^[1] Forrester. https://www.forrester.com/report/global-retail-e-commerce-forecast-2024-to-2028/RES180924, sourced November 1, 2024

^[2] Consumer Financial Protection Bureau,  https://www.consumerfinance.gov/ask-cfpb/why-do-i-need-to-register-my-prepaid-card-en-439/, sourced November 1, 2024