Use Digital Wallets

Use Digital Wallets

11 Sept 2019

We are living in an age of unprecedented change coupled with disruptions probably never seen before in human history. In virtually every facet of life, new technologies are emerging at lightning speed and disrupting existing players and even industries as a whole. The way we make payments for availing of different day-to-day services is also witnessing a sea change. According to an Assocham-PwC study, India is expected to clock the fastest growth in digital payments transaction value between 2019 and 2023 with a compounded annual growth of 20.2 per cent, ahead of China and the US. Digital payments can double to $235.2 billion by 2023. Moreover, in the next four years, India's share of worldwide transaction value of digital payments is set to increase from 1.56 per cent to 2.02 per cent.

Digital Wallets is one such payment mechanism which has revolutionized the payments industry in the past few years. Let us understand this new-age method of making payments in greater detail below.

Digital Wallets can be installed on your smart phones to pay for movie tickets, grocery, utility bills and much more. This will help you avoid carrying fat wallets stashed with multiple cards and cash. You can add money in a Digital Wallet and do your purchases.

You can link your bank account or debit / credit card to your Digital Wallet. You can use it to pay directly from your account or you can either load the wallet. It is very easy and simple to load your digital wallet - Open the App, enter the password and transfer money from the wallet to your vendor whenever you want to make payments. The well-known digital wallets in the country are Amazon Pay, Free Charge, MobiKwik, Paytm and PhonePe. To make the most out of such Digital Wallets, do keep in mind a few salient points:-

  • Cash Back Offers: You can avail cash back offers in abundance due to competition between various E-wallet service providers. Check your digital wallet for cash back offers, free vouchers or coupons.
  • App Selection: Always check the customer ratings and reviews of an App before making a final selection. Minimize the ease of tracking by restricting the number of digital wallets on your phone.
  • Safety:Receive the transaction related security with the help of a two factor authentication for all your transactions. Always shortlist good device security software (s) along with a phone finding feature.
  • Keep Low Balance: It is recommended that you keep the balance in your digital wallets as per your usage needs only and avoid keeping excess or unwarranted balance.
  • Expenses Tracking: It is possible that you may end up spending more than you need to if you go cashless. Therefore, keep a track of your expenses and ensure that it is within your budget at all times. Keep an eye on your bank statements regularly.

To put it in a nutshell, Digital Wallets help you save more through promotional features and thus provide dual benefits of convenience as well as monetary benefits.

Pros of using a digital wallet:-

  • Can be a budgeting tool
  • Safer than cash in some circumstances
  • Faster and more convenient
  • May have rewards for spending
  • A concrete step towards a cashless economy

Cons of using a digital wallet:-

  • May encourage impulsive spending
  • Risk of Giving away sensitive information
  • Risk of the digital wallet failing

Should you or shouldn’t you Use a digital Wallet?-

  • Restrict the amount of money you put in the wallet
  • You can clarify that the company providing the wallet keeps your details confidential; they will not sell the data to marketing companies, for example.
  • The digital wallet is relevant to your lifestyle; there’s no reason to accumulate reward points that you’ll never use.

Overall, the advantages of using a digital wallet outweigh cash payments. Just as with a credit or debit card, however, you should be cautious not to expose your password or other account details.

Founded in 2005 by new–age entrepreneur Abhishek Bansal, the Abans Group has evolved into a globally diversified conglomerate, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management. The Group is a comprehensive financial and non-financial services and solutions provider, aiming to provide end-to-end solutions to its clients.