The age of online shopping is upon us. It wasn’t a smooth start but retailers and other stakeholders gradually found solutions to problems that came up. They continue to innovate today as customer needs and expectations change. For example, credit cards proved to be extremely useful right from the onset. It was a convenient mode of payment that only required the entry of a few details per transaction. Now, however, it is getting more fashionable to use an electronic wallet which is usually accessed through a phone app. In this article, we delve deeper into the credit card electronic wallet debate.
How They Work
With credit cards, you need to apply in a bank or a similar institution to have the privilege of owning one. You will be given a credit limit based on different factors such as annual income and credit history. You can buy anything with the borrowed money and only pay fully or partially at the end of the month. As for e-wallets, you can transfer funds from your bank accounts and spend only the money you already. It’s just like carrying a physical wallet where you can only use the bills and coins inside.
Main Features
The money in digital wallets can also be transferred to another person’s account. For example, parents can send money to their children who are studying far away. Some wallets can be used to pay bills such as credit cards and utilities. They might also have their own loyalty programs with unique perks. Both methods of payment have built-in buyer protection mechanisms.
Top Benefits
People use credit card electronic wallet to build up their points and get rewards. These could be in the form of miles for future travel, cash backs as a percentage of expenses, or discounts for their purchases. If they use their card responsibly, then they can show off an impressive history that will make loans easy to apply for. They can also enjoy lower interest rates and other advantages as a result of lender confidence.
As for electronic wallets, one of the main benefits is their ease of use. They were designed to be user-friendly such that people from all walks of life can join the digital economy. They are also widely accepted with more and more establishments accepting payments through these wallets. Anyone can download and install the apps on their phone. Most will only require an ID for verification. There are no lengthy background checks necessary since you won’t be borrowing money but spending what you already own.