Pros and Cons of Using e-Wallet Digital Wallets – The e-Wallet digital wallet phenomenon is currently on the rise, where the growth of e-Wallet users is increasing rapidly in Indonesia, and this is a new business competition for financial management companies to compete to attract as many users as possible to use their digital wallets.
Using a digital wallet or e-Wallet is really practical and transactions are very fast and you can pay for anything through the e-Wallet application on a smartphone. And this is a non-cash payment system that is very popular today. E-Wallets truly excel at payments with small transaction amounts, which is why paying by credit card is often uneconomical when making small payments. In addition, e-wallets can make online shopping easier and faster than ever.
Digital Wallet E-Wallet
An e-Wallet is an electronic version of a payment card that is authorized to make transactions on your behalf. This wallet is stored as an application on a mobile device, such as a smartphone. This is a file you store on your hard drive that contains all personal information relevant to online purchases, including your credit card number, billing address, and expiration date.
E-wallet e-wallets must be linked to a debit or credit card and there is also a requirement to link the e-wallet to the account bank certain to operate properly. Then, through the use of information and software, consumers can use their e-wallets to pay for goods, various bills, and other types of payments without needing you to carry a physical wallet or to pay by card.
E-wallets are very secure and have less risk of fraud than using a credit card. This is because if your e-wallet digital wallet already has a cash balance, there is no need to provide bank or card information when buying products or paying bills.
And the following are some of the advantages and disadvantages of using a digital e-wallet.
Advantages of a Digital Wallet (E-Wallet)
This offers more convenience for many consumers. The user can make a purchase in a few seconds, all you need to do is tap your device to the payment container, or scan your mobile device, to pay for the item you bought. thus, the buying experience becomes faster and easier – leading to a greater sense of satisfaction. In addition, with faster transactions, in-store checkout processing paths are shorter.
E-Wallet or digital wallet ensures high security features for users taking into account that you authorize every transaction with a PIN or password or fingerprint scanner. Furthermore, when paying with e-wallets, you don’t have to reveal your debit / credit card details to anyone, either online or offline.
The information is stored through third party providers. Locked behind your password or biometrics. Even if you lose your device, you will still have access to your e-wallet once you get a new device.
Digital wallet applications provide a more practical and convenient method of processing transactions for customers, giving businesses using this technology a more competitive advantage in the market than others. It redefines the paying user experience and incorporates renewal aspects for each purchase.
E-wallets allow you to use digital cash in a number of places such as for payment of train tickets, bus tickets, gas, water, electricity, convenience stores, credit installments etc. Thus, e-wallets offer a variety of options and save you time, where there is no more searching for money in your wallet or pocket, no more searching for change for the cashier.
4. Low Cost
Using a digital wallet eliminates the need for intermediaries, in various forms, in-store purchases may no longer require a cashier as the buying process becomes as simple as tapping your smartphone screen or as easy as scanning on a smartphone device.
Lack of Digital Wallets (E-Wallets)
1. Unlimited merchants
The number of merchants or merchants who accept payments with e-wallet digital wallets depends on which digital wallet service you choose. There is no doubt that most people are already using cashless payment methods across the country but a number of merchants have yet to add digital e-wallets to their smartphones. And there are even many online shops that do not provide payment via e-wallet and therefore customers are required to use the payment system and debit / credit card details.
There are several e-wallet digital wallet applications that may charge you a fee for making transactions. Generally, give all offers in the form of cash back which can only be transferred to the bank after paying a fee.
3. Technology support
The NFC terminal and specialist scanner are the only devices being made at this time that will support processing payments via digital wallets, so they are very limited because the technology is still new.
And those are some of the advantages and disadvantages of e-wallet digital wallets that you can understand before deciding to use a digital wallet. What is clear is that making transactions using digital wallets has proven to be easier, faster and more practical. Of course this will always be developed to become a more complete and broader means of payment.