Digitalization is gaining popularity among the common man as more and more people are proceeding with it in many aspects, money included. Online wallets are one of the key digital developments that have been embraced by large numbers. There are very clear benefits that have been realized by people and hence, the medium has become popular.
- No Need to Carry Cash
This is the biggest advantage of an online wallet. It allows you to have access to money without really having to carry it. It keeps you free from worries about losing it either accidentally or to a theft of some sort. It also allows you to shop anywhere, provided they also are associated with the same wallet.
- Limited Expense
Since you can only spend what is in the wallet it helps you to curb unnecessary expenditure. The digital signature in the form of a security PIN also allows limited access. For parents with growing up tech-savvy kids, the online wallet can be accessible with no worries of overspending as with a credit card or debit card.
- Easy to Top Up
Having said that, if there is a requirement beyond what is stored in the wallet, the process of topping up is easy and convenient. By linking it to your account, you can transfer money easily to the wallet with a few clicks and an efficient authentication process.
- Secure Transactions
The app related online wallets are generally linked to a phone number, which can be used for making transactions with the associated retailers. The same wallet is also associated with a bank account or a credit card, which can be used to top up the money in the wallet. All the transactions are digitally secured and have to be authenticated with the holder of the account. You do not need to reveal your bank account details for any transaction using the wallet. A similar benefit is seen with PayPal personal accounts, through which the transactions are carried out using an e-mail address. You can make and receive some types of payments without incurring fees, and pay low fees for others
- Great Incentives
Many of the transactions involving online wallets give you access to great discounts. As a consumer, you can save money. Other than that, you also have reward points that can be collected with every transaction and then redeemed for cash back or further discounts. Even with PayPal personal accounts, some payments can be made either free of charge or at a discounted fee.
Since the demonetization in India, the digital drive for financial transactions has picked up momentum. Other than giving various benefits to consumers, it helps the government to detect any fraudulent transactions and accordingly stop the perpetrator from further hurting the economy. These also help prevent such transactions.