Contrary to what many might think, the answer to “what is wallet in the digital sense” is as straightforward as it sounds. It can be thought of as an electronic substitute for a physical one. You can store an amount of money within the app and facilitate online transactions with that balance, independent of your bank account.
However, as UPI continues to become the norm for payments in India, Digital Wallets have undeniably taken a back seat. That said, there are still plenty of reasons why you should possess a digital wallet and set aside an amount in it. Here are those reasons.
Independence from bank servers
Most digital payment modes, including UPI, depend on the bank’s servers to be operational for transactions to be facilitated. Here, Digital Wallets vastly differ. With such wallets, you can make essential payments even when the bank’s servers are down. This proves particularly important during emergencies.
Particularly useful for children
Digital wallets can be particularly beneficial when you want to allot some funds to children without giving them access to the full bank account. With a wallet, you can easily provide them a predetermined amount to spend. Moreover, this also inculcates a sense of spending consciously among them. This benefit extends to other dependents as well.
Relatively safer in case of fraud
While trusted platforms and payment avenues largely provide necessary protection from scams, a Digital Wallet’s nature gives it an edge. Since your bank account is not directly linked to the wallet, the risk is only restricted to the remaining balance and not the entire bank account.
Provides aid in budgeting and spending
In case you are trying to follow a stringent budget, a Digital Wallet can be an excellent tool. Since you are cut off from the main account, you are more inclined to keep your expenses within the wallet’s balance. This helps you stick to that budget.
Similarly, if you are someone who struggles with impulsive spending, avenues like credit cards do not help the case. Even UPI, which facilitates instant transactions and is linked to your bank account, is not suitable. Here, a Digital Wallet helps control the urge to spend money hastily.
Wallet-exclusive rewards
While Digital Wallets may not be the norm, they are far from an obsolete mode of online payments. Many apps and companies provide attractive benefits and rewards for such wallets. This is particularly beneficial if you want to set aside money for a specific expense and earn relevant rewards on it simultaneously. Furthermore, such rewards and cashback often add up to a meaningful saving over time.
Conclusion
With the various types of Digital Wallets, their varying features and benefits, possessing one can be a great decision for any individual. That said, the choice of wallet is what makes a meaningful difference. It is advisable to only opt for trusted platforms. They not only provide attractive rewards and benefits but also the necessary protection from scams and fraud.
