1. It offers more convenience for many consumers.
When you’re carrying an electronic wallet, you get to limit the number of cards you carry when you travel. You no longer have the requirement to carry a lot of cash with you either. All you need to do is tap your device to the payment receptacle, or have your mobile device scanned, to pay for the items you are purchasing. That means you’re no longer carrying a pocketful of items wherever you go.
2. It provides access to other types of cards.
Electronic wallets typically store credit cards and debit cards. They can be used for a wide variety of cards, however, if the provider is compatible with the wallet you are using. That means you can store rewards cards, loyalty cards, and even coupons within your digital wallet, allowing you to enjoy more of a paperless lifestyle.
3. It offers more security.
If you have a wad of cash in your pocket that gets lost, you have zero options available to you to recover your funds. Losing your credit cards means you must contact each lender to cancel each card, then have a new one issues. With an electronic wallet, the information is stored through a third-party provider. It’s locked behind your password or biometrics. Even if you lose your device, you’ll still have access to your e-wallet once you get a new device.
4. It can be used at most retailers and online stores.
Electronic wallets have become widely accepted within the past few years. Most locations that accept cards as a payment option will allow you to pay with your electronic wallet. Although there are still some locations that are using older processing technologies, which does limit some product or service access, the number of retailers who provide payment access in this manner continues to increase each year.
5. It requires users to authorize every transaction.
Electronic wallets function like a debit card when initiating a transaction. They require you to input your PIN to authorize payment. For devices with biometrics, a payment would require your fingerprint to authorize it. That gives you another layer of security against unauthorized purchases or the financial risks associated with identity theft.
6. It may offer access to new rewards.
Many electronic wallets offer incentives to encourage consumers to use them instead of traditional payment methods. You may find discounts apply to certain purchases, such as fuel, food, or travel. Some businesses may work with your e-wallet provide to offer specific discounts as well. That means you have the potential to save money without changing your spending habits. You’re just changing how you pay for those items.
7. It could help you with your budget.
Many electronic wallets can help you track your spending habits. Some may generate reports that show you specific categories of spending. You can also assign fixed budgets to specific cost categories to ensure that you’re not spending more than you should on certain items. If you have a big-ticket item to purchase, however, you can disable this feature to make sure there’s enough money available to make the payment.