5 Benefits of Using a Digital Wallet (and Digital Payments)

The post 5 Benefits of Using a Digital Wallet (and Digital Payments) appeared first on Coinpedia Fintech News

In days past, you would need to check you had both your phone and your wallet before you left the house, but now they can be the same thing! People can carry all the money they need via their digital wallet or e-wallet, paying for goods without needing a bank card. 

Digital wallets can store all of the details that you have on your debit or credit cards so that you can make payments in person, but you can also use them to move money around digitally. With the modern twists and turns financial services have seen you can also hold cryptocurrencies within the digital wallet on your phone.

Faster and More Convenient Payments (Especially in Certain Industries)

Cryptocurrencies in particular can provide faster ways for money to be moved from one place to another, with the gambling industry leading the way. You can move your money simply and use a digital ledger to ensure even more security through a P2P system. No middleman (bank) is involved. 

In the modern casino industry, people may want to use crypto, and there are even specific cryptocurrency casinos with a wide selection of games, and in the world of online gambling real money transactions can be made incredibly quickly with digital wallets. Players may just need to use Face ID or a fingerprint to approve the transaction and set it in motion. 

Bitcoin and crypto go hand-in-hand with certain industries, and the gambling industry has led the way when it comes to cryptocurrency, some estimates say that most Bitcoin transactions are in the gambling industry. Early adopters have helped move the industry forward and there are even specific crypto casinos. 

Some crypto payment processing companies allow people to pay using crypto and then convert the money to whatever currency the retailer wishes, which means that the currencies can be even more flexible than ever before.

Potential Rewards

Some digital wallets offer the opportunity to earn rewards, as the companies want users to download and use their specific digital wallet, so they need to incentivize it in some way. 

Mainstream wallets like Google Pay and Samsung Pay often have special reward schemes where people can activate a promotion for a reward and follow the instructions on the site to access things like cashback or other rewards. 

Some people can also find that they can access rewards from both their credit card provider and promotions from the likes of Google Pay. Google Pay also offers promotions where people can invite others to use the wallet and this can earn users a reward.

Rewards vary from one provider to the next and can be seasonal or temporary so it is a good idea to check first, but this can be a benefit of digital wallets. 

Instant Access to New Cards

Some credit card providers can allow people to access their card instantly, adding it to their digital wallet as soon as their application is approved. This means no waiting for the card and a PIN number to come in the post, it can be ready to use in a matter of seconds. 

Convenience is one of the key benefits of this but it also means people may be able to do things like balance transfers more quickly.

Crypto wallets already give a very fast way of making payments and accessing money but those who are looking to use traditional, centralized currencies can still use digital wallets for more convenience.

Splitting the Bill

Digital wallets can have extra functionality that you might not get from a banking app, and you certainly won’t get if you are using a physical card to make payments. 

One of these benefits is the option to quickly split the bill among friends, a lot of wallets can break down the costs much more easily and leave you with a clear idea of what you owe. Not the biggest benefit you’ll ever get from an app, but it is still helpful, especially if you’re the sort of person who eats out a lot with friends and family. 

Hygiene

Using cards and cash is actually pretty unhygienic. People are more aware of germs than ever, and some studies have found that 99% of banknotes have some sort of harmful germ or bacteria on them. This is a risk people don’t actually need to take in the modern age, as they can use other payment methods. Even using a card isn’t totally hygienic. Think how many surfaces it comes in contact with over its life, and it’s not like people tend to regularly clean them. 

Instead, keeping things digital means you can use your phone and not rely on older, outdated methods that can put us in harm’s way. 

As you can see, there are lots of plus points to using digital wallets and making payments digitally rather than using cards or cash, and the world is likely to adopt digital as its main payment method in years to come.