Digital wallets, also known as e-wallets, are a growing global trend. According to the website Juniper Research, there are 3.4 billion digital wallet users worldwide, which is expected to grow to more than 5.2 billion by 2026. If this forecast materializes, in just three years, 60 % of the global population will use e-wallets.
Numbers speak for themselves. The rising popularity of digital wallets has an explanation for the fact that they offer many benefits to users. But what are precisely the perks of using an e-wallet?
In this article, we will explore the advantages of using digital wallets and why so many people choose them as a new way of dealing with money.
About digital wallets
Nowadays, you can almost do everything with a digital wallet, from paying for groceries at your neighborhood store to gambling online with cash app.
Nevertheless, only some know what digital wallets are. According to Wikipedia, an e-wallet is an online service that allows users to make electronic transactions through digital currency, such as purchasing goods or services. It means you can buy things by paying with a digital method through a mobile device, such as a smartphone or a tablet.
Digital wallets can be linked to your bank account or deposit money in it, avoiding sharing your bank information.
Aside from working as a payment method, in some cases, digital wallets also allow users to store documents such as their ID, driver’s license, and health card. Furthermore, in some countries, such as Japan, e-wallets are used to verify buyers’ age if they want to purchase alcohol.
Aside from allowing transactions with national currencies, e-wallets also work with cryptocurrencies, such as Bitcoin, Lite, Ethereum, and many others. Crypto wallets are becoming popular among those who use cryptocurrencies since they allow users to easily make payments using almost any crypto.
Benefits of using digital wallets
As we mentioned before, the popularity of e-wallets is growing fast among young adults, prompting more and more people to use them.
Below is a list of the benefits of using a digital wallet instead of real money or your bank account to make payments.
- It is safe
When you make a payment through a digital wallet, you avoid giving anyone your credit or debit card and share its information through a magnetic reader. You can keep your cards safe at home and make payments avoiding displaying your private information in front of the shopper or other customers.
But that is not all; digital wallets are also safer because the information they provide to proceed with the payment is entirely encrypted. Also, digital wallets use random payment codes that are unique and can’t be used again.
So, using a digital wallet to make payments is safer and protects your privacy.
- It is simpler
Forget about taking a bunch of plastic cards with you and regularly checking if they have expired. With a digital wallet, you need your smartphone to read the code on the payment terminal, and everything is complete within a few seconds.
You don’t have to care about forgetting your debit or credit card at home, at the ATM, or in the shop. Just with a mobile device, you will be able to complete any operation immediately.
Also, as we mentioned before, since many e-wallets are expanding their services to store IDs and other documentation, you can avoid carrying those documents with you and avoid the hustle of getting new ones if you lose them.
There are many services of digital wallets available, so they need to make an effort to attract customers. In other words, most digital wallet services offer customers rewards to keep them happy.
Consequently, if you use a digital wallet, you will get access to several bonuses, promotions, and discounts.
Many wonders if they lose bank or card rewards, bonuses, and promotions if they use digital wallets. The answer is no; you still get all the benefits your credit or debit card offers, even though you are paying through a digital wallet.