How To Get The Most of Digital Wallets
With over 2.8 billion mobile wallets in use globally and approximately $7.5 trillion worth of digital wallet transactions happening in 2022, there’s no doubt that the digital wallet system has come to stay. In this article, we take a peek at what digital wallets are, go on to tell you some really interesting uses, and then brush up on ways in which you can make the most of your digital wallets.?
Getting Familiar With Digital Wallets
Think of your regular wallets. They are portable, store money and perhaps other important credentials, and need to be kept secure. Digital wallets have the exact same characteristics, but in addition to being kept secure, they also sport some security features themselves.??
A digital wallet, otherwise known as an electronic wallet, is a software program or application that enables the transfer of digital money or assets. They can be run from user-owned device(s). Also, they are designed to offer security from digital or electronic fraud.?
You might ask how crypto wallets differ from regular digital wallets, such as those operated by banks and other financial institutions. The answer is that electronic fund transfers on banking apps are merely a representation of money moving from one bank account to another. The real asset remains the liquid funds in circulation and those in bank ATMS or vaults. On the flip side, crypto wallet transactions represent an actual movement of the underlying crypto asset.?
Whatever form they take, digital wallets have the unique characteristic of eliminating/minimizing human intervention in fund transfer processes.?
Uses of Digital Wallets
Digital wallets are created to store and transfer digital funds securely but they sure have a variety of other uses. Here’s a list of those interesting uses you probably didn’t think about:?
Imagine that you subscribed to a music app about a year ago. You no longer stream music on the app but you forgot to terminate your subscription. The service doesn’t send you any notifications. However, they consistently charge a monthly fee to your linked card or bank account. Since you’re not the type that cares to check your account statement, you’ve been unknowingly paying for the music service more than six months after you stopped using it.?
Believe it or not, such oversights happen and a digital wallet expense tracker is designed to mitigate this problem.??
The expense tracker feature gives digital wallet users a clear breakdown of all their expenses. Unlike regular account statements that are clogged with numbers on tiny prints, an expense tracker catches inbound and outbound transactions, measures one’s spending habits, and more importantly, gives vivid details using charts, graphs, or other eye-catchy and easy-to-read formats.?
Users can utilize an expense tracker to determine if a payment is recurring, when each transaction was made, and what item or service is being paid for or subscribed to.?
2. Create Invoices:
Digital finance transcends beyond making and receiving payments and that’s all thanks to digital wallet platforms. These wallets, in addition to facilitating lightning-fast transfers, also help to promote on-time payments. They do so through an invoicing feature.?
The invoice feature allows businesses or sellers to create and forward invoices to buyers or potential buyers, reminding them of an upcoming payment. In the case of a subscription service, the business can schedule invoices to be sent at specific dates or intervals to the paying customer. Both parties must have active accounts with the same digital wallet service provider.?
3. Save or Earn:
Another important use of digital wallets is for saving and earning. Wallet service providers brandish attractive rates, encouraging users to invest their money and earn a percentage of it on a monthly or annual basis.??
4. Access to Digital Services:
Digital wallets try to improve user experience by connecting to as many digital services as possible. They create a seamless customer journey for more than one business. For example, users may pay for a concert or air travel service by scanning a QR code using their digital wallet. On scanning, the payment fee is deducted automatically from the available wallet balance and the ticket is generated and stored within the wallet.??
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Getting the Best of Digital Wallets?
In this section, we take a look at the little things you can do to make the most of your digital wallet.?
You don’t want to miss out on important transactions or security alerts from your digital wallet. To ensure this doesn’t happen, you will have to turn on notifications. The usual notification options are SMS, email, and push notifications.?
The SMS option will send notification messages to any phone number linked to your digital wallet, the email option will send your wallet notifications to your linked email account, and the push option displays notification messages directly on your device as long as you have the digital wallet installed on it.?
2. Set up Backup and Recovery:
Mobile digital wallets or “mobile wallets” are a type of digital wallets that run strictly on mobile devices. Each user owns a single wallet that is linked to a device of their choice. Losing this device means that the user has lost access to their account - well, except they have a backup and recovery process in place.?
To set up backup and recovery, look for the options available on the digital wallet platform. Once done, proceed to choose an option that is easy and reliable. Follow the instructions and remember to save important credentials generated in the process.?
3. Use and Acceptance:
Countries all over the world have varying perspectives on cryptocurrencies and digital wallets. Moreover, certain regions only trust or allow the services of a particular digital wallet provider. This makes it imperative for users to figure out what is accepted within their country/area of residence. Government or financial institution websites play a huge role in delivering the necessary information.?
4. Educate Yourself on Fees:
Digital wallet providers charge fees for transactions such as funds transfer and currency conversions. Users must know what fees are applicable, and when. If this information is not readily available, turning to policy documents, online reviews and ratings, or customer support services should present a solution.?
5. Use Secure Networks:
Public WIFI networks always pose a security risk. They are major targets for hackers who monitor user activities and steal their digital credentials, gaining unauthorized account access and wreaking havoc.?
Sticking to a private network or internet connection is a more reliable option since users can manage their security settings and receive alerts regarding any fraudulent activities on the network.??
6. Leverage Rewards and Cashbacks:
Another way to get the best out of your digital wallet is by choosing a wallet provider that offers rewards and cashback. Look for online reviews and advertisements and check out what the provider has to say about their tier program.????
Conclusion
Digital wallets are more useful than they seem at face value. Interestingly, new and advanced features are being developed to push the boundaries on wallet security, convenience, accessibility, and ease of payments as we know it. We can only wonder in amazement what the future of digital wallets would bring. In the meantime, remember to keep your passwords safe, use only trusted network connections, and follow local regulations on the use of digital wallets.
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