Digital wallets are rapidly expanding. By 2021, the number of digital wallet users will have risen to 200 million, up from 140 million in 2018. The global digital payments market is expected to reach $1 trillion by 2020, accounting for 10% of all retail e-commerce transactions. Users of digital payment services like Apple Pay and Google Pay may be wondering what a digital wallet is and why they would want one. After all, we’ve been carrying cash and credit cards in physical wallets for many years. But there’s a reason why so many people are now opting for digital alternatives: they provide some significant advantages over traditional methods of storing and spending money, particularly when it comes to cryptocurrency trading.
Digital Wallets Are Useful
Digital wallets have several significant advantages over traditional payment and service delivery methods. While it is worth noting that in some cases these benefits reflect a more efficient and effective use of existing technology rather than the introduction of new and different types of service, the differences are undeniable. Furthermore, some of these changes will almost certainly have a significant impact on the future of digital payments.
There Is No Need For Money
Payments can be made using digital wallets without the need to carry cash or credit cards. This is ideal if you don’t want to carry a lot of cash or if you’re traveling in a foreign country where you’d prefer to use a digital payment method rather than your home currency.
There Is No Need For Card Swiping Machines
To process payments, many stores still use card-swiping machines. However, as digital wallet payments become more popular, these are likely to become less common.
There Is No Need For Physical Gift Cards
Another benefit of digital wallets is that they can be used to digitally store gift card information. This makes tracking gift card balances easier and prevents gift cards from being lost or damaged.
There Is No Need For Travel Tickets
Some digital wallets allow you to purchase airline tickets or book hotel rooms. They can also be used to keep concert or event tickets.
There Is No Need For Printed Coupons
Coupons and loyalty card information can be stored in some digital wallets. This makes tracking these items easier and allows them to be redeemed remotely.
It Is Simple To Create a Digital Wallet
If you want to set up a digital wallet, you have several options depending on your needs and preferences. Among the most popular digital wallets are:
Digital Wallets Offer a Wide Range of Services
A digital wallet allows you to store financial information such as credit cards, gift cards, or other account details, allowing you to make purchases online or in physical stores even if you don’t have the necessary cards with you. It can also keep track of any other financial accounts you have, such as bank accounts, investments, and loans. Most importantly, a digital wallet can be used to securely and cheaply send and receive cryptocurrency. A digital wallet can also serve as a decentralized identity (DID), allowing you to prove your identity without having to rely on a single organization. When interacting with decentralized applications (dApps) hosted on decentralized networks, this feature comes in handy.