Digital wallets, commonly known as electronic wallets (e-wallets), are gaining popularity quickly due to their wide range of benefits. You can buy goods and pay for services right from your smartphone.
But like with any other technology, e-wallets have their downsides. Do the cons surpass the pros? Are digital wallets worth all the hype?
Simply put, e-wallets are card-based online payment methods (because you connect credit or debit card(s) to your account in the app).
But, unlike typical card payment methods, digital payment methods have much more to offer. Let’s dive deeper into the benefits of digital wallets.
The registration process for a digital wallet is straightforward and usually takes a few steps to complete. Simply download a compatible phone app and follow the instructions on your screen. Finish by filling in your payment details to load your e-wallet.
You no longer have to count notes, look for credit cards, confirm bank details, fill any papers, or shuffle through your pockets to look for your card.
You can pay for goods and services with a few quick clicks on your mobile digital wallet app. In some cases, you’ll only need to hold your smartphone near a compatible sales terminal to pay.
You can also withdraw cash from your mobile app when near compatible ATMs. And all these transactions will be complete in a matter of seconds.
Do you want to buy a product online? It’s easy. You don’t have to key in your credit card details manually. By integrating several cards into your e-wallet, transactions are quick and seamless.
Digital wallets are also ideal for freelancers. You can pay for services and receive payment for services quickly.
What if you lost or misplaced your wallet? That would mean that any credit and debit cards or cash inside are no more. And the chances of recovering your cash is very slim.
For credit cards, you would have to contact each bank and request them to lock them. You can then replace each card and recover your funds. That’s not only time-consuming but also costly since you might have to pay a processing fee for each new card.
In an unfortunate case, your wallet could fall into the hands of thieves who might forge your identity. They might withdraw all your cash before you can report it to your financial institution.
But with a digital wallet, your card information is protected by a password or biometrics. The data in your e-wallet is saved in the cloud. That means you’d still have access to your accounts even after replacing or losing your phone.
Plus, you’ll need to authorize every payment using unique one-time codes that cannot be reused, biometrics, or a pin. Digital wallets are also protected by similar privacy and security policies as your physical credit cards.
Enjoy a paperless and more organized lifestyle with a digital wallet. Since you can connect all your debit and credit cards to your e-wallet, this becomes easier to manage if you have multiple cards.
Some e-wallets will allow you to include other cards such as loyalty cards, coupons, and gift cards. That saves you the time you would have spent searching for cards between all the items in your wallet.
Forget about your bulky wallet. With a digital wallet, you no longer have to carry so many cards, and neither do you have to carry a pocketful of cash. Instead, you can pay for most (if not all) of your transactions with a simple tap on your phone’s screen.
Some outlets allow you to scan a code on your smartphone app to pay for goods and services.
Over recent years, e-wallets have become a preferred payment method for most locations that accept payment via cards. These include both online and retail stores.
And the good news: the number of retailers accepting e-wallets continues to increase every day.
You can also use your digital cash to pay for your bus ticket, train ticket, water, gas, electricity, and more.
Details about all your payments are stored inside your mobile app. And you can access this data weekly, biweekly, or even monthly. Some e-wallets can generate reports to show how and when you spent your money.
Other e-wallets will let you set a fixed budget for specific categories and notify you whenever you’ve reached your limit. And it will be easier to stick to your budget.
Since digital wallets are still new in the market, some e-wallet platforms will award users special bonuses, such as discounts.
Not only will you enjoy a convenient, fast, and secure way to make payments, but you’ll also get amazing incentives to remind you that digital apps are worth it.
Loading money to your e-wallet is a breeze using your credit card, debit card, or internet banking. Plus, your app saves all your details, and you won’t have to re-enter these details each time you load your digital wallet.
Do you have an invoice you’d like to split with your team members? Well, with an e-wallet, you can now easily and quickly breakdown expenses.
Just enter the number of people who will pay for the bill, and the e-wallet will instantly generate a link that you can share with your other team members.
Along with advantages, digital wallets also come with some drawbacks.
You pay through an application, so if you lose your phone or the battery runs out of juice, you cannot access your digital wallet.
The type of cards compatible with your digital wallet depends on your bank’s relationship with the e-wallet company.
To know if your card works with your e-wallet, try adding the card. Your e-wallet will determine if the card is compatible with the application.
Even if you have a fully charged device and a loaded digital wallet, the e-wallet will not help you if you do not have an internet connection. Areas with low signals may also not give enough speed to complete a transaction.
All the information stored in your e-wallet is encrypted and can only be accessed by typing your pin or scanning your fingerprint.
In most cases, digital wallets are safer than carrying cash or paying using credit cards. That’s because even if you lose your device, a stranger cannot access your e-wallet unless they have the passwords or biometrics to access the app.
In this fast-paced digital era, users are always looking for the most convenient and quickest payment method. And e-wallets are projected to keep gaining popularity.
They are not only safer, easier, and more convenient but also quick and flexible. But, you’ll need to have a working smartphone connected to a decent internet connection to access your digital wallet.