The rise of digital wallets is here! Yes, look around and you will find people using Phone Pe, Google Pay, Amazon Pay and lots more when it comes to making payments instantly. If you are not using a digital wallet in the post-pandemic era today, you might be missing out on a whole world of benefits- the biggest being you no longer have to hop to the nearest ATM to take out cash for your local purchases. Let us take a look at some of the top reasons as to why you should switch to digital wallets today.
It’s time for you to go cashless!!
1. Convenience round-the-clock
Digital wallets apps offer people an online payment option which is both fast and convenient. They can easily use it to process a wide range of financial transactions using smartphones, laptops, tablets or desktop computers. These include making online purchases, paying outstanding utility bills, remitting or receiving money.
Moreover, they can execute all of these payments while on the move. In doing so, they do not have to carry bulky physical wallets containing cash, coins, their plastic money and identity cards in their pockets. This helps them to complete their transition to becoming totally cashless which is the need of the hour in a Pandemic world.
2. Diverse range of options
People frequently use digital wallets for making online payments because of extra features service providers offer them.
Generally, all digital wallets apps fall under three broad categories. These are closed, semi-closed and open.
- The closed digital wallet enables users to pay for the products and services which the vendors provide them. “Amazon Pay’’ is an example for this wallet.
- Semi-closed wallets allow users to make online purchases to specific e-commerce sites and locations which the service provider lists.
- Banks issues open digital wallets to users in collaboration with the service provider and are applicable for executing all online transactions.
3. Security
Most people today are reluctant to carry their physical wallets wherever they go for obvious reasons. There is always a possibility of it getting stolen, missing or lost without their knowledge. Then, they have to go through the laborious process of having to cancel and re-issue all of their credit cards.
Fortunately, all digital wallets have state-of-the-art security measures to protect their owners’ confidential financial data. These include strong passwords, retina and fingerprint scan mechanisms This prevents nefarious individuals from accessing their sensitive information if they happen to lose their smartphones.
4. Organization
Digital wallets enable smartphone users to organize all of their financial data according to their specific needs. They can arrange all of their credit, debit, membership, customer loyalty and VIP cards at their fingertips. This allows them to use whatever payment option suits their requirements when executing online purchases.
Moreover, it is possible for them to sort all these transactions for easy retrieval without any difficulties. In case of disputes relating to the online purchases, they can present the relevant transactional data to resolve the issues. Unfortunately, this is not possible in other forms of mobile payment options.
5. Online shopping
The phenomenal growth of online shopping in recent decades has been instrumental in popularizing digital wallets apps among smartphone users. This alternative payment options makes it easy for them to make quick payments for their online purchases.
In doing so, there is no need for them to enter all of the plastic money details to process the transactions on a point-of-sale (POS) portal. The e-commerce storefront they frequently browse stores the necessary information in its private domain to safeguard the customers’ confidential data.
6. Reward points and discounts
Most companies operating e-commerce websites offer attractive discounts, affiliate programs and reward point schemes to digital wallet users. The enterprises’ objectives for implementing these marketing techniques are targeted to expand their online customer base and promote their brand image.
However, sales promotion methods give shoppers the incentive to use this alternative payment option to make online purchases. In the process, they normally end up saving a lot of money to their amazement. This strengthens their loyalty to the companies.
7. Greater acceptance for small merchants
Many merchants operating local grocery stores and other small businesses are following the footsteps of large e-commerce companies. These traders are slowly adopting the latest digital wallet technology in order to accept online payments from their customers and suppliers. This is better option for them than to carry on their commercial operations on credit. They do not have to make frequently phone calls to their trading partners to clear their outstanding dues. The stakeholders can instantly and securely pay whatever amount they owe the merchants digitally. This help to improve the traders’ cashflow position and builds their brand presence in the market.
8. Cost-effective
Almost all vendors dealing in digital wallet applications offer cost-free services to their clients. This implies the online users do not have to exceed their budget when making purchases within this alternative payment mode. However, the service providers do levy a small fee from their customers in case of money transfers to credit cards via the wallet app.
So, after de-monetization in India, when the government encouraged people to go “cashless”, the response was not as encouraging as it is in 2021. It is prudent for you to go “cashless” today in a pandemic-stricken world. When it comes to incorporating digital wallets in your life, you not only can pay faster but you can stay safe from the risks of contacting the coronavirus from ATM keypads too!
