" Invention Of Digital Wallets "

Digital wallets are a step toward convenience and speed, but a fully cashless society would radically transform how we access, manage, and control our money. In this post, we discuss the differences between digital wallets and a true cashless economy, explore the pros and cons of each, and examine how close we are to a world without physical money.

The first digital wallets were invented in the late 90s

· 1997: Coca-Cola mobile payment

· 1999: PayPal

· 2003: Alipay

· 2011: Google Wallet

· 2014: Apple Pay

Courtesy: Youtube Channel @morningmoneybuzz

Three Types Of Digital Wallets

1. Closed Wallets

Definition:
Closed wallets are company-specific, so we can only use them to buy goods and services for that specific company.

Book My Show Wallet, Big Basket Wallet, Domino’s Wallet Flipkart Wallet, Make My Trip Wallet , Ola Money, Starbucks App Wallet

2. Semi-Closed Wallets

Definition;

These wallets allow us to buy both online and offline within a merchant-specific network

Amazon Pay Paytm , PhonePe , MobiKwik (India), Venomo (US)

3. Open Wallets

Definition:

These wallets can be used anywhere where bank transfers and card payments are accepted

Google pay , Apple pay , Paytm Payments Bank Wallet , PayPal

Digital Wallet vs Cash: Advantages :

Digital Wallet

Payment is virtual through phone or App

· Very convenient

· More secure

· Easily Trackable

· Can be used globally

Cash

· Can be used anywhere, no dependence on technology

· Accepted Universally

· No daily transaction limits

Digital Wallet vs Cash: Disadvantages :

Digital Wallets

· Needs an internet Connection and a device for transactions

· Digital Wallets are not accepted at all places

· Have daily limits for transactions

Cash

· Requires exact change

· Easy for loss or theft with no recovery

· Non-Trackable

· No Technical Limits

· Currency Exchange is required for global transactions

Suggestions

Neither can we go entirely digital, nor can we stick to our traditional cash transactions. But Digital Wallets should be promoted because if we look closely at the topic, then digital wallets have more perks, advantages, and rewards. So, spend smartly and start to use digital wallets more often along with cash . Preserve cash for emergency situations .

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