What is a digital wallet?
A digital wallet is an app that is an electronic version of your wallet – it stores information about your credit cards and bank accounts in electronic form on your phone. It can also store your driver’s license, health insurance card and other ID documents, as well as your passwords, loyalty cards from different stores, gift cards and digital coupons. A digital wallet is also known as mobile wallet, electronic wallet or e-wallet.
What is a digital wallet used for?
The main use of a digital wallet is to make payments – you can use it instead of using a credit or debit card, or writing a check. Stores can also use it for verifying the buyer’s age and credentials before selling certain items like alcohol.
How is a digital wallet used for payment? How does it work?
It’s simple: your financial details are stored in the e-wallet, and are transmitted wirelessly when your phone is held close to the store’s payment terminal. This is also called contactless payment.
What are the advantages of a digital wallet?
The main benefit of digital wallets is convenience – you don’t have to carry multiple cards with you. Another advantage is security – if a regular wallet is stolen, the thief has access to all your credit cards. But if your phone is stolen, your digital wallet is safe because a password or biometric authentication is still required to get access to it. Digital wallets can also track your spending habits, which can help with budgeting. Some digital wallets also offer rewards and perks to their users.
What are the disadvantages of a digital wallet?
Although the number of merchants supporting digital wallets as a mode of payment is increasing, the acceptance of the digital wallet could be limited. Also, you would not be able to use a digital wallet for payment if your mobile phone runs out of charge.
Podcast: What is a Digital Wallet or e-Wallet
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
All you need to know about Digital Wallet or e Wallet: What is a digital wallet used for, How is an e-wallet used for payment – how does it work, What are the advantages of a digital wallet, What are the disadvantages of a digital wallet, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-a-digital-wallet-or-e-wallet/