Digital Wallets have become quite famous as online payment tools that are accessible to everyone with relatively low costs. They are secure, convenient to use, and rid you of the need to carry a wallet in your pocket!
Some amazing digital wallets like Cash App allow you to send and accept money from other accounts. There are other options as well where you can save digital tickets and e-vouchers as well.
Before we take a look at some of the basic advantages of using a digital wallet, let us explore the leading e-wallets that you should try this year. Here’s a quick overview.
Google Wallet: This app was launched in 2016 and is available on smartphones as well as on the web. You only need to provide your email ID and phone number along with bank account details to activate the digital wallet. The transfer takes online a minute and all transactions are secure and guarded with Google Payments PIN.
PayPal: Who hasn’t heard of PayPal service? The tool took the world by storm when it was launched almost a decade back. You can use a PayPal account to easily transfer money to other accounts and even pay when shopping online. PayPal app is available on both Android and iOS smartphones.
Cash App: Cash App is another famous option that was made available in 2014. It offers contactless payment and you can also store credit/debit card information here to pay through Cash App. Moreover, you can send money from Chime to Cash App if you run out of funds. It is safe to use so you don’t need to worry about the security of your personal information and savings.
How Do Digital Wallets Work?
New customers have been hesitant to use e-wallets as they are new and less information is available on their functionality. So if you are new to this item, here is a breakdown of how digital wallets work and how you can use one in the future.
- Digital wallets are equipped with electronic software technology
- These can be linked to checking accounts and used to make money transactions when needed
- Before you begin to use a digital wallet, you need to download the app
- The download process is straightforward and easy
- You then have to create an account by providing your personal information and in some cases, credit card or debit card data, to begin the money transfers
Do Digital Wallets Have a Bright Future?
Currently, many different types of wallets are available that you can access and use easily. Many customers prefer open digital wallets that can be utilized to transfer money in all sorts of transactions. On the other hand, closed digital wallets can only work with certain retailers or just the company that owns the wallet.
Regardless of the wallet that we are talking about, digital wallets have not only become famous but also hold an impressive, bright future.
Their main selling point is that they are extremely easy to use. You can forget about providing your card information every time you are making a purchase and simply send the funds using your digital wallet account instead.
Furthermore, these wallets can keep your money safe just like owning a bank account. All the payment information that you provide will be stored in an encrypted, central position. Additionally, the card is also never stored. Instead, it is assigned a secret virtual number to keep track of your account in case your smartphone is lost or stolen.
With all these advantages, it is obvious why digital wallets can prove to be quite useful in the future. [So if ever you are interested in growing your business, switching to a digital wallet may help you do fast and secured transactions. Thus, increasing more of your time in monitoring other areas of your business.]
What Are Some Disadvantages That You Need To Watch Out For
One of the basic disadvantages that digital wallets carry is that they are not applicable everywhere. As compared to cash payments that are accepted worldwide, transactions made via digital wallets may only apply at certain retailers or specific companies which can limit their usability.
Furthermore, customers are still quite concerned about their security. Although most of the leading products in this category come with encryption and layers or safety, the rising trend of cyberattacks has made it difficult for newbies to believe that e-wallets can keep their savings away from any harm.
Lastly, shifting from cash to digital money is a difficult habit to break. This has resulted in people facing trouble when it comes to budgeting and they blame digital wallets when they end up spending more than they planned.
Luckily, some wallets have now introduced budgeting features. They send out alerts when you have spent more than you needed and also allow you to save important expenditure notifications.
These are some of the reasons that have made customers resistant to change. Nonetheless, the proper use of digital wallets requires some awareness beforehand to allow people to see how they are a better and safer alternative to carrying cash.
The Bottom Line
You can choose from a wide range of wallets available digitally. We have discussed some of them above and other options include Due, Android Pay, Samsung Pay, Venmo, and Walmart Pay. Regardless of the one that you decide to download, make sure it is safe and legitimate.
All reliable digital wallets encrypt banking information and safeguard personal data at all costs. You can also get in touch with the wallet issuer to understand better the terms and conditions of its use.
Hopefully, this article was helpful in explaining how digital wallets work and how they can be useful in the future. Do give them a try and don’t forget to share your experience with us!