The coronavirus pandemic led to many innovations. The most notable ones include selling products and services online, working remotely, and using digital money to make payments.
Doing all these things necessitated a convenient mode of payment. It led to a surge in digital payment innovations and usage. Although wallets existed before the pandemic, they were not widespread because of fear. However, surveys show that consumers are comfortable and willing to make and receive payments online. So what are digital wallets?
Digital wallets are mobile apps that allow users to make and receive payments online. The wallet enables one to buy goods and services and make payments online. With this wallet, you do not need hard cash or credit cards to make payments. Digital wallets such as Apple Pay, Google pay, and OWNR WALLET allow users to make payments by clicking a few buttons.
Note that digital wallet usage is not restricted to online purchases only. It could be used to make payments for in-store purchases. More people prefer using digital wallets over cards and cash because they are safe and enhance the shopping experience. Here are ways digital wallets continue to shape the future of payments.
1. Shopping Online
The advent of eCommerce has changed the way people make purchases. You no longer need to walk to a physical store to buy merchandise and perishables. You can place the order online, pay via digital wallets and have them delivered to your doorstep.
You can transfer funds from your account to the seller’s wallet on your mobile device through digital wallets. Once the transaction is completed, the seller may need to organize the delivery of the merchandise.
Thus, millions of users use digital wallets to pay for goods and services online. Such wallets are convenient and reduce the time spent processing credit or cash payments. Also, they make the checkout processes more streamlined and more accessible.
2. International Remittances
A digital wallet is the best innovation that happened in the 21st century. The wallet connects to a global network and enables one to transfer funds from one wallet to another in seconds. Gone are when international money transfers could take days, if not weeks, before getting to the recipient.
As such, millions of users working abroad are using the innovation to transfer trillions of dollars to their kin in different countries. They are also able to make multiple transactions in seconds.
3. Storage of Cards
Digital wallets are not just for keeping money online but can also store scanned cards and other valuables. You can shop and pay using a credit card stored in the digital wallet. Notable, isn’t it? In addition, you no longer need to walk with cash or credit cards. It eliminates the possibility of misplacing your card or leaving it in slots. Moreover, the wallet keeps records and lets users track their finances efficiently.
4. Making Payment To International Institutions
As technology advances, digital wallet providers partner with institutions for mutual benefit. Therefore, it is now possible to pay tuition fees for students studying in foreign countries through digital wallets because the partnership among providers has made cross-border payment easier. So if you are in a different financial system, you should be able to make payments to another financial system through the wallet.
5. Makes Banking Easier
Digital wallets enable banks to link mobile devices to the customer’s account. This allows users to deposit or withdraw money from the report on their mobile devices. It is why the long queues common in banking halls have disappeared. Further, digital wallets allow for self-service, meaning that banks can downsize their staff without affecting the quality of service delivery. Digital banking is convenient hence it is the most preferred transaction method between banks and clients.
Although digital wallets are new, they have disrupted the financial sector and revolutionized people’s actions. The wallet has enriched financial services offerings and ushered in remarkable innovations. You can now contact cashless and cardless transactions on your mobile devices.