Digital wallets are just what they sound like, a digital replica of your physical wallets. They are usually in the form of an app and linked to your bank account. A digital wallet stores all your credit and debit card details and holds money in its account for a seamless online payment experience. They are particularly helpful in online purchases and online retail stores, but they are also very convenient to use for payment at physical stores. While some merchants and customers still haven’t caught up to it, many people have started using digital wallets, often completely replacing the traditional physical wallet.
- Time-efficient and easy to use:
One of a digital wallet’s most immediate selling points is that it saves a lot of time. Once you transfer money into your wallet, you can quickly start using it for your payments. A payment through a digital wallet can be done within seconds. It is also easy to set up as most payment and online shopping apps have a digital wallet where you can add money and start using.
- A convenient alternative:
If you have used a physical wallet, you might have experienced having to fit your multiple credit and debit cards, bills, receipts, cash, etc., into a tiny space or leaving them in your bag and struggling to find them while making a payment. Digital wallets completely eliminate this hassle. You only need a phone with a mobile connection, and all your important cards and bills can be stored in one place, just one tap away. To transfer money online is one advantage, not having to worry about losing cards and change is another.
- Security and tracking:
A digital wallet holds your bank information and keeps it secure through encryptions, and security codes and passwords set up by you. Even if your phone is lost, no one can easily access your wallet. However, you can instantly use the same wallet on a new phone. You decide how much money you keep in your wallet at any time, you can even transfer money to bank account again if that’s what you want. Since the payments are digital, you can keep track of all the purchases you have made.
- Effect on spendings:
One thing to consider while expanding your digital finance options is that it may affect the way that you spend. Unlike physical money, where you take out the money from your wallet or present your card, you cannot feel the money leaving your bank account in a digital process. Since the process is invisible, individuals tend to spend more recklessly and don’t always realize if they are spending on a budget or not. However, some digital wallets do allow the option of adding limits on your spending.
If you want to use digital payment for other uses than online mobile bill payment, prefer saving time and energy while making a transaction, and can keep a watch on your spendings, then digital wallets might just be the answer for you.