They can encourage spending
While there is no denying the convenience of e-wallets, it could open a spending trap for the unsuspecting. The pain of parting with money feels more real if you use physical cash instead of something digital. Hence, using cash instead of e-wallets acts as a natural stopgap measure for people who find it difficult to control their spending. This means that using an e-wallet could encourage overspending, throwing your budget into disarray.
Giving away sensitive information
Another big fear is the risk of identity theft and loss of sensitive information. Since we are culturally not attuned to digital transactions, even well educated people run the risk of falling into phishing traps or accidentally giving away their personal information. Coupled together with the rising incidence of online fraud, the risk of hacking will only grow as more people hop on to the digital platform.
The risk of the mobile wallet failing
One reliable thing about physical cash is that unless it is torn or burnt, it rarely fails whereas an app on the phone might lag (when there’s patchy internet connection) or even fail. When that happens, and you are left without any other forms of payment and will be stranded. This can be especially problematic if you are traveling abroad or in smaller towns or villages with a lack of banking system or other payment options. As you are dependent on your phone for all your on-the-move transactions, losing it can prove to be a double whammy. Another drawback is that you need to keep your phone constantly charged. If the phone dies on you, and you’re all out of electrical plugs or power banks that can be a real headache.
Hopefully, this will help with some of your questions about e-wallets and give you a better understanding of this rising trend globally. If you haven’t jumped on the bandwagon yet, perhaps the above points can help you decide whether to pick up that phone and download an e-wallet.
