There are over a dozen alternatives when it comes to online payments. Classic bank transfers, credit & debit cards, prepaid cards, cryptocurrencies – you can use all these and many other options, but more often than not, you use the good old digital wallet. And you’re not alone – 950 million people used e-wallets in 2019, and more than 350 million people will join them by 2023.
The number of merchants accepting mobile wallets is growing as well, from 24% in 2015 to 29% in 2019, which is no wonder considering the global growth in small payments and the convenience of e-wallets. Not only are they making online shopping easy and fast, but they can also store your personal and financial information, be used for retail purchases, provide access to loyalty schemes, rewards, coupons, and discounts, and more.
But just like any other payment tool, e-wallets are not perfect. So the real question is, do the advantages of using an e-wallet outweigh potential risks, or maybe there are more secure, convenient, and cost-effective solutions? Let’s find this out along with Anna Rosak, a gambling expert from KasynoHEX.
Most Popular Use Cases of e-Wallets
Devise-agnostic, free to use, and usually pretty cost-effective, digital wallets can replace traditional payments altogether or at least in the areas where their usage can give you advantages, such as higher privacy, faster transactions, or lower fees.
It goes without saying that online payments are by far the most popular usage of digital wallets, especially when it comes to areas where privacy is paramount. Take, for example, online casinos: most gambling sites would gladly accept both your bank card and e-wallets, like Mifinity casino, EcoPayz or PayPal, but only the latter would provide you with the required level of privacy at your Wazamba, Slottica, Betinia, Energy Casino, or whenever you play.
Aside from online purchases and payments, digital wallets are convenient to pay bills, both utility and restaurant where split-bill functionality may come in handy. Bonuses, discounts, and perks are included as well.
All in all, digital wallets are convenient, secure (every transaction is authorized independently by the wallet owner via a PIN), granting access to most other types of cards and payments, and they can even help you with your budget via budget plans and reports.
Disadvantages of e-Wallets
No technology is spotless, and nor are e-wallets, which means you have to weigh all pros and cons in the first place. The possible drawbacks are:
- Limited number of retailers. The number of businesses ready to accept your payment depends on the e-wallet you use, but anyway, digital wallets are much less popular than credit cards. Direct payments are only possible via NFC terminals and special scanners, which are still not too widespread, though the number of wallet-friendly retailers is growing exponentially
- Fees. Whereas transfers between addresses of your wallets – whether you’re moving funds between your addresses or sending payment to another user – are usually free, transfers to other payment systems will be charged with a fee of up to 10%.
- You still have to carry a phone. If you’re not paying from home, then you have to carry a mobile phone to be able to pay. On that note, if your device runs out of power, you won’t be able to pay.
- Security is not impregnable. Though dependent on your personal settings, the security of mobile devices of most users is far from perfect due to the reluctance of the latter to set up a strong password, keep the phone locked, timely update the software, avoid using public Wi-Fi hotspots, and a number of similar omissions.
- You may be tempted to spend more. When you spend cash, you are much more aware of your spending than when you’re parting with your digital money. All digital payments without exception promote extra spending.
But then again, digital wallets are one of the most developing payment tools. The fastest-growing regions are Southeast Asia, Africa, and the Middle East, whereas Europe and North America are lagging behind. There were over 2.8 billion mobile walletsinstalled at the end of 2020, which means one user on average takes advantage of two to three e-wallets.
