By now, you have probably heard about new payment methods such as e-payments and digital wallets. Digital wallets allow users to make quick payments using their mobile devices, where they can store their payment information in one convenient place, that is their digital wallet.
This payment method has been gaining popularity in the past few years. It represents a shift in payment methods for goods and services away from traditional cash and cards towards a digitalised payment method.
So, what is a digital wallet?
Investopedia defines a digital wallet as a software-based system that securely stores users' payment information and passwords for numerous payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology.
In other words, a digital wallet is a virtual wallet that can be accessed through various devices, such as a smartphone, tablet, or smartwatch. Using an e-wallet, a person can pay for items in a store, settle a restaurant bill, buy airtime for the mobile phone, book a ticket, pay electricity bills, and transfer money.
Digital wallets help retailers enhance the customers' experience. It saves time and efforts as it does not require customers to fill forms or even remember their card number, all they need to do is simply scan their device and the check-out process will be completed.
Digital wallets allow retailers to offer additional services for their customers that extend well beyond payments and into loyalty programs and gift cards.
What are the benefits of a digital wallet?
Digital wallets eliminate the need to carry a physical wallet (cash money and cards) by storing all of your payment information securely. All digital wallets authenticate your payment transactions with encryption, making the payment process safe and secure.
Below are some of the benefits of digital wallets:
Nowadays, people don’t want to carry bulky wallets with a bunch of credit cards, debit cards, and loyalty cards. Digital wallets can neatly carry all the information needed to shop and pay utilities and bills, giving users greater flexibility and convenience.
When it comes to your regular physical wallet, you could lose it or it can be stolen! If so, you will not only lose your money but also your cards, documents, license, etc. all of which you will have to call to cancel and go through the hassle of issuing new ones.
Digital wallets use the best methodologies of keeping data secure and encrypted by implementing high-security standards and end-to-end encryption.
Banking the unbanked
Having a digital wallet does not require having a bank account. All you need to do is hand the money to an agent who will add the amount to your wallet.
Digital wallets allow users to make payments for goods, services, and utilities, as well as receive funds or remittances from friends and family wherever they are.
Digital wallets represent instant payments. With digital wallets, you can make payments and in minutes or even seconds using your smartphone, tablet, or smartwatch.
With this payment method, the queues in the stores move faster since the payment is done in less than a minute. when online shopping, the digital wallet saves time and the hassle of entering the credit card details and identification because everything is already confirmed within the app.
Keeping a record of expenses can often be tedious. Digital wallets eliminate the hassle of recording expenses through tracking data for every transaction. This gives users greater knowledge about their daily spending and lets them track their expenses.
Digital wallet is for more than just paying money. Most mobile wallets offer promotions, Reward Points, CashBack, bonuses, and gifts.
For more information about Digital Wallets, check out ESKADENIA's digital wallet system, ESKA Digital Wallet.