In recent years, digital transactions have literally taken on the already diverse fintech world. Everyone from taxi drivers to elderly citizens and former fans of debit card casino are doing their best to ‘make friends’ with these tech advancements. In many countries, the government has established multiple organizations to educate citizens towards digital evolution. But is the game worth the candle? Or perhaps we should stick with the time-proven banking options and avoid the unfamiliar stuff? Why don’t we get to the bottom of this and draw our own reasonable conclusions?
Let’s focus on e-Wallets. They have significantly contributed to making money transactions super easy, fast and convenient. What is the main advantage of e-Wallets? Correct, it’s safety. By using digital wallets, you make transactions through a highly secure channel that prevents frauds. In addition to this, you don’t have to disclose your sensitive financial information when making payments via e-Wallets. Today, confidentiality is very important for everyone, so that’s why digital wallets are so popular.
Another important benefit of using digital wallets is convenience. There’s no need to have your credit/debit card on hand worrying that someone might steal it. Instead, you just scan your smartphone at the store’s device and tap ‘Send’ to process the transaction. It’s that easy!
Also, e-Wallet companies provide their clients with generous discounts for using their services to make payments. Do debit card companies offer the same yummies? Very unlikely! That’s another juicy benefit to spark your interest in digital wallets. In addition to this, you can always access your favorite e-Wallet app on mobile.
Furthermore, transactions are extremely speedy with e-Wallets. And you don’t have to type your credit card details whenever you’re up for shopping online. You just pay with your e-Wallet and that’s it! Click! And you’ve just made your purchase! In other words, when using digital wallets, you transact with ease and comfort, following the latest trend on the e-commerce scene. Having said all that, there’s a certain touch of grey to all of this silver lining. Let’s discuss the disadvantages of e-Wallets now.
So, why do some people still opt for credit and debit cards over digital wallets? Here are the main reasons:
- You won’t be able to use e-Wallets without your mobile device. You don’t need to carry an actual wallet with you when using digital wallets, it’s true. But you need your mobile device instead. So, we cannot say that e-Wallets will completely soothe all your worries over safety and confidentiality. In addition to this, you always need to make sure your smartphone is charged, which is even trickier than carrying a traditional wallet with you.
- There’s nothing ‘unhackable’ under the sun. If you’re not very good at technology, you may fall under the category of people to whom using an e-Wallet is risky. Here’s why. To protect your e-Wallet account from hackers, you need a secure password. And you need to change it on a regular basis. If you know how to do it, then you’re relatively safe. But then again, in today’s world, there are no accounts that cannot be hacked, no matter the trickiness of one’s password.
- Possible hidden fees. Even though a lot of digital wallets offer cash back to their users, they also charge some hidden extra fees from time to time. So figuring this issue out in detail is very important prior to use e-Wallets.
- Unlike credit/debit cards, e-Wallets fuel lotus-eating. Fast and non-stop access to money evokes somewhat hedonistic shopaholic attitude in people. According to the recent research, the launch of mobile payment methods has increased total money spent by almost 3%. The study also discovered that people who used digital wallets usually spent money on leisure, beauty products, travel, and food, while healthcare and education were left far beyond their priorities.
Today, PayPal is the most popular e-wallet on the market. Will there ever be a worthy alternative option? Time will show. The future of digital wallets is still to be discovered. Despite the many benefits of using e-Wallets over debit cards, the good thing about it is that you can make your own decisions and eventually make the most of your freedom of choice. Buy safe and choose wisely!