Cash is a form of tangible currency that can be used as legal tender in many countries. Many businesses only accept cash since it is the simplest, and most widely recognized method of payment for goods, debt, or services. However, people are carrying less cash these days, thanks to the increased reliability and simplicity of digital money and payment systems.
A smartphone application that allows users to keep and transfer money digitally is known as an eWallet. It is a form of pre-paid account that allows users to save money for forthcoming digital transactions. A password is used to secure it, and it can be used to pay for groceries, online purchases, and plane tickets, among other things.
Advantages of eWallets over cash
- The primary advantage of utilizing an eWallet is that it eliminates the necessity to keep cash on hand at all times. This means users won’t have to worry about losing their wallets, having their credit cards snatched, or being robbed of their money. According to the FBI’s annual crime report, over 20,000 purse snatchings occur in the United States each year.
- For many consumers, it is more convenient. Users can complete a transaction in seconds by just tapping their device on the transaction terminal or having their smartphone scanned to make payment for the things they are purchasing.
- Another significant merit of eWallets is their assurance of high-security features for consumers as they authorize every transaction with a PIN, password, or fingerprint scan. Furthermore, when paying with an e-wallet, users do not have to reveal their debit or credit card information to anyone, whether online or offline.
- The use of digital wallets, in various forms, eliminates the need for facilitators. In-store purchases may no longer require the assistance of a cashier, as the transaction can be completed with a tap or scan of a mobile device.
- Tracking the expenditure is one of the most crucial aspects of budgeting since it allows consumers to understand where their funds are going and keep track of their expenditures. By using eWallets, people can get a list of their past and present purchases, which helps them get closer to their financial goals. Although users get receipts and invoices while paying by cash, it is still tough to maintain them.
Disadvantages of eWallets over cash
- The number of retailers accepting eWallets is still relatively low in comparison to the payment method with cash. As a result, not everyone can use eWallets and must rely on cash.
- There are some eWallets that charge fees for doing transactions such as making payments or sending money to other eWallet users. However, it is recommended to pick an eWallet such as ecoPayz that has low transaction fees. More info about the ecoPayz fees is here.
- The introduction of modern technology is still seeming complex to some older people who struggle using eWallet and rather depend on cash transactions.
Although it is true that eWallets have some demerits, the positive aspects surely surpass those.