We all know how smartphones have made a number of tasks like booking movie tickets, ordering food, paying bills, etc. so much easier. But it really isn’t necessary that you have to whip out your debit card every time you make a transaction. Now, a simple ‘tap to pay’ is a smarter idea.
While demonetization catapulted the use of digital wallets, with all the lack of cash and everything; what is the use now? There are hardly any lines at ATMs, there is not much of a lack of cash any more, then why use digital wallets? Besides the simple move towards a digital India, digital wallets are just more beneficial to use. But before we get to these benefits, let’s get some basics out of the way.
Types of digital wallets
Closed wallets: A wallet like Airtel Money, Aircel Mobile Money, and Tata Teleservices’, the closed wallet is offered by retailers, to use only at their stores to purchase goods.
Semi closed wallet: These wallets include the likes of Paytm, PayU, Mobikwik, etc. and let you make purchases across a list of approved vendors.
Open wallet: Banks are the only ones who can issue these wallets. Open wallets provide the functions of a semi closed wallet plus the ability of cash withdrawals at ATMs.
Benefits of using a digital wallet
Ease: You do not have to carry a lot of cash everywhere you go and you don’t have to take out your cards every time you make a purchase.
Perks: Digital wallets offer numerous discounts and special offers like cashback. Always keep an eye out for offers on your digital wallet.
Security: There is a minimum two layer security for approving payments from banks to the wallet, including your password and a generated OTP.
How to safely use a digital wallet
Even though a digital wallet is supposed to be safe, it can only be so when you take proper precautions:
Always download the wallet from the app marketplace and not randomly off the internet. This reduces the chance of you getting a compromised and risky app.
Your phone becomes very important for your finances. Now, you must protect it with anti-virus and anti-malware apps. Any malware in your phone has the potential to steal your financial or personal information.
There are some digital wallets that do not ask for two factor authentication and let a funds transfer happen without requiring confirmation. In such cases, losing your phone can expose you to a lot of risks. If your digital wallet is of this kind, make sure you use an app lock and a screen lock as well.
Most wallets keep you logged in even when not in use, for ease. It would be a better idea to log out once you are done using it.
Always maintain a low funds balance in your digital wallet. You can keep topping it as and when required, as it reduces the risk you might face if your phone is stolen.
Digital wallets can still be considered to be in their beginning stages, as they are relatively new. However, they are fast, safe, and easy to use, making them a perfect supplement in our march towards a cashless economy and a digital India.
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