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Pros and cons of using mobile digital wallets over debit/credit cards

Despite the initial confusion regarding fund transfer after demonetization, we have embraced the various cashless modes of payments either willingly or by no choice. Today nearly every other person is using some form of cashless payment, be it online banking, mobile wallets, UPI, or Aadhaar based payments.
However, as a coin has two sides, so does the mobile wallets, as these have their respective pros and cons over the previous cashless ways, i.e. debit and credit cards.

The pros of digital wallets over debit/credit cards

Digital wallets have undoubtedly made financial transactions incredibly easy and convenient not just online but in person as well. Here are some of the benefits of e-wallets:

  1. Security

With digital wallets you make payments through a safe and secure channel, considering that you authorize every transaction with a PIN. Moreover, when paying with a digital wallet, you need not reveal your debit/credit card details to anyone, online or offline.

  1. Discounts

Furthermore, digital wallet companies regularly offer attractive discounts on using their wallet for making payments. For instance, if you use e-wallets for purchasing fuel, there is a discount of 0.75% on the purchase amount.

  1. Convenient

Using digital wallets undoubtedly is far more convenient as compared to the debit/credit cards. You do not have to carry all your cards everywhere, dont have to worry about the cards being stolen or lost, just scan your mobile at the retailers device or click Send on your phone to make payments.

  1. Less time consuming

Digital wallets save you from situations like when your card doesnt work at the PoS terminal, or the terminal isnt working in the stores. Also, no need to enter your card details each time you shop online, just pay with your digital wallet and you are done.

The cons of digital wallets over debit/credit cards

Digital wallets despite having many advantages over the debit/credit cards have their share of disadvantages as well.

  1. Limited retailers

Though cashless payment modes are being accepted by a plethora of people across the country, many retailers have still not added a digital wallet to their phones. Moreover, many online stores who do not offer payment through e-wallets, and hence the customer is required to use debit/credit card details.

  1. Dependence on phones

Considering the rapid pace at which everyone is accepting digital wallets and cashless payment methods, the dependency on phone or other devices is increasing as well. For instance, in case you forget your phone somewhere, or your phone battery dies, digital wallets cant offer much help.

  1. Task for non-tech savvy people

Considering that not every person in India is tech-savvy and has an internet connection, digital wallets are unreachable for a large part of the population. In fact, there are many people who are still using a basic handset or have no phone at all.
However, irrespective of the disadvantages digital wallets carry with them; the coming years will definitely see more people switching to them.
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