Nowadays, frequently we see people taking pictures of advertisement boards placed on the counter of stores, coffee shops, or other vendors. We may also see customers placing their smartphones on the devices presented by the proprietor.
Scan payment is one of the most common uses of digital wallets, and there are few methods to pay hands-on without any cash. While it seems sophisticated to non-users, digital wallets have made an efficient transaction of money.
Digital wallets are the apps on your mobile phone that have your bank and credit information. You can make purchases and payments using that app. There is no sense in carrying another wallet for credentials and paper money. It is the new generation payment method in society that is seeing digital transformation in every sector.
Using Digital Wallet
The use of a digital wallet is easy and simple. You have to own a smartphone. After that, you must download the digital wallet app of your choice. The app is like any other app that requires authentication. After necessary signup information is fed in the app, it will be ready to make transactions.
Compactly, digital wallet stores all the payment information of users. Security of digital wallets is guaranteed by layers of biometric scans and hashed passwords. It is difficult to do a forgery and steal others’ money from their account.
Based on the uses, digital wallets are of three types.
- Open wallet: It is used by individuals to do all sorts of general payments partnered with their bank. You can withdraw paper cash with an open wallet through ATMs.
- Semi-open wallet: It has jurisdictions and can only be operated between a user and certain merchants. The relationship of transactions is predetermined with the bank. You cannot withdraw paper cash from this wallet.
- Closed wallet: It is used strictly between a merchant and a user. It is committed to only one dealer of a user, and the wallet is closed and secured from outer influence. Amazon pay is one of the examples.
You must be careful regarding sharing mobile information with others while using digital. It is the only reason that would make you vulnerable to the risk of losing your money. Apart from that, there are no drawbacks to using digital wallets.
Major Advantages and Disadvantages of Digital Wallet.
However, altogether there are a few pros and cons of Digital Wallet.
Have you ever got a bulge on your back pocket, and it is difficult to walk, sit or turn around? You cannot shift that volume to your jacket or shirt and not to your front pockets. I have tried. You are bound to walk with that discomfort, and you cannot even get rid of it because it is your wallet.
Digital wallet has condensed all your credentials and security within the wallet to the app. We can go anywhere just with our handheld device, and that’s it. We don’t have to remember anything else.
Organization of all our documents and bills is also easier as the advantage of the digital wallet. We can place them in many customized folders, which can be found within seconds. There is no delay, still searching or not finding problems. It has increased the efficiency in person.
Have you ever been mugged in public? Lost all your valuables and don’t have anything to spend and get back home? I have, and it’s not pleasant. You reach out for your smartphone, and it is gone too.
It’s only irrelevant for a pickpocketer to take your wallet and leave your mobile phone. It doesn’t make any point as a supporting statement for a digital wallet, but it is easy to handle if there is only one thing to take care of. After, we are handy with our mobile phones.
Digital wallet has taken our security prospect to a completely safe level. People who steal our cards or authentication information can easily violet our life. But, with digital wallet even if we lose our phone, different layers of security like facial recognition, biometric scans makes it impossible for forgery.
In a bigger scenario, the digital wallet is probing in solving the environmental issues caused by the necessity for printing cash. Reduction in paper use is very important in saving enough trees.
Someday, when there is no cash around, it will create a secured environment.
That’s it, and I don’t have any personal experience regarding the advantage of digital wallets because it is meant to be more than for personal use. It is the foundation for the next-generation business market. Already, there are so many transactions between organizations that use digital wallets.
It is even beneficial for the company to do its transaction with the digital method. Companies can deduce information from the purchasing pattern of consumers. They can plan marketing policies and implement strategies to increase their sales within the digital platforms. Much time for research and development is saved because of the digital wallets.
Nowadays, we get to hear about emerging new technologies of cryptocurrencies. The banking relations are also improving because most transactions are done through banks. These conversions to digital currencies have made us able to make overseas investments on our own. Our prosperity probability has increased with the use-cases of digital wallets.
Have you ever felt lazy to go to the store to buy groceries, go to a friend’s house to ask for some money, cross the road and walk another way when that friend shows up for returns? Well, it’s a cobweb of hassles that money has knit around us, but it certainly creates social dynamics in our life. It defines our life as living because we move.
The use of digital wallets is detrimental to our social impulses. We are losing part of us, being human beings because we no longer have to invest in the commerce of life. Investment of our gestures, sharing our gratitude, and social skills are not needed when buying and selling goods. Business owners now don’t think about customers satisfaction, and they don’t have to.
Digital wallet application gathers all the details, and the company only has to figure out how to take the product’s advertisement to the customer’s phone. And, the customers are always ready to fill their cart. The digital wallet interface has created a big wall that is simply destructive to our civilized habitation.
The fun out of shopping, it’s gone.
Have you ever bought something using payment cards of someone else, or even from someone else’s wallet? There is no hesitation to shop when you are not paying. But when you think about your first salary, suddenly there is a plan not to buy. This feeling of responsibility toward money is very crucial for making good investments.
Digital wallet has removed tangible money from our pockets and made a number in our phone. There is always a temptation to buy new things because, in a way, we have already lost control of our money. Well, it is gone. If we compare money in the digital wallet with any possession we have, money seems fairly distant.
Digital wallet has influenced careless spending in customers. Even customers try to be super careful, and there are always bad expenditures for which they blame themselves, resulting in anxiety with investments.
I have never used a credit card in my village to buy any commodity. All the activities are carried out with the transaction in cash. Some people are even unaware of the existence of these cards and digital wallets. It certainly raises a flag in the use of digital wallets.
Many rural areas do not have proper banking systems. People cannot buy smartphones with their level of earning per capita. And frankly, they are struggling to get used to ATM cards and debit cards. There is no possibility for digital wallets.
The limitation of digital wallets in only urban areas has resulted in questions about reliability in digital wallets. It’s like human beings to travel. People move from one place to another.
On the one hand, digital wallets are inaccessible in rural areas, and on the other hand, it has started making all the transactions cashless. If we rely completely on it and get stranded in a rural location, the experience would be quite memorable. So, we need to address this fact.
Credit At Last
It isn’t easy to believe in new systems all around us. It is scary that we want to accept them but cannot fully trust them. Digital wallet has tried to make our life easy and our tasks convenient. But it holds up our savings, our juice for life; how can we believe hesitantly. We have to have a transparent idea of this new system of alliance between our money and us.
Companies offering digital wallet services are committed to gaining users’ trust to increase the number of customers. We must also try to make an effort. After all, acknowledging each others’ defects and trying to coexist in the way of our living.