In the world of today which we know as Digital age due to modern tech and development, using a digital wallet has become very popular. It is important to mention though, that even modern technology has its challenges hence using a digital wallet comes with its own risks but on the upside, the benefits outweigh the risks and users need to be aware of this so in this article we will explore the pros and cons of using digital wallets for our everyday transactions.
What is a Digital Wallet and How Does it Work?
A digital wallet also known as e-wallet is a software-based system that can store payment information such as credit card numbers and bank account details. With Digital wallets, users can make payments quickly and securely without having to enter their payment information. This makes the concept mind-blowing because, unlike the traditional payment methods, with digital wallets, you do not need to manually enter payment information every time you want to make a purchase.
The Benefits of Using a Digital Wallet
There are uncountable benefits of using a digital wallet. The one that stands out is it’s convenience! Do you know what this means? It means you can literally store multiple payment methods in one place and then make payments very quickly and many times without inputting the payment info each time. How exciting is that?!
Another important benefit of digital wallet is security. We love to secure the things we care about, our valuables and this includes our hard-earned money. Digital wallets address this problem with what we call advanced encryption technology, yes, I know this sounds complicated and it is, that is why hackers cannot get into it.
So, with this enhanced encryption technology, your payment information is protected, and this means you can sleep well at night.
The third exciting benefit of using digital wallet is that you have the ability to keep track of how much you spend. The transaction history in digital wallets are so detailed that you are able to figure out when you are spending too much and this is a good factor because we all like to manage our finances because rainy days do come.
The Risks of Using a Digital Wallet
In as much as using digital wallets offer numerous benefits, it is important to keep in mind that anything that has an advantage has some downsides however minimal they may be. With that said, I will like to point out that security breaches could happen with a digital wallet and hackers will gain access to a users’ payment information, this of course goes without saying that certain steps needs to have been missed by the user before a hacker can access the backdoor to their digital wallet. So if you do your due diligence as a user then the chances of this hack happening is very minimal.
Another risk worth mentioning is the potential for identity theft. If your digital wallet gets hacked, then the attacker could have access to your personal info and contact details.
Lastly there is the risk of financial loss because I mean, that is the whole point of trying to secure our money. So, its pretty obvious that in the event your personal and payment information is hacked, then you could lose your money. It is important to mention though that the potential of such hacks happening is very very low, so I still vote for digital wallets any day, anytime!
How to Mitigate the Risks
It only makes sense that after we tell you about the risks (even though minimal) associated with digital wallets, we must inform you about what you can do to mitigate or cancel these risks. The first step is to choose a reputable digital wallet provider that uses advanced security measures to protect user’s personal and payment information.
Secondly, you should make use of strong passwords and enable two-factor authentication as this adds an extra layer of security to your account.
Thirdly, as a user, you must be cautious when making purchases online and be sure to enter your payment information only in secure websites. One of the easy ways to check if a website is secure is by looking at the top left corner of the site, there should be a padlock sign.
Conclusion
It only makes sense that after we tell you about the risks (even though minimal) associated with digital wallet, we must inform you about what you can do to mitigate or cancel these risks. The first step is to choose a reputable digital wallet provider that uses advanced security measures to protect user’s personal and payment information.
Secondly, you should make use of strong passwords and enable two-factor authentication as this adds an extra layer of security to your account.
Thirdly, as a user, you must be cautious when making purchases online and be sure to enter your payment information only in secure websites. One of the easy ways to check if a website is secure is by looking at the top left corner of the site, there should be a padlock sign.
For more information please contact our support +370 (8) 52 07 5750 or email us at [email protected]
