When someone wants to pay for something at a register, they usually reach for the credit card or a wad of cash. That’s beginning to change, though, as smartphone adoption rates rise. One major reason why is that the concept of a digital wallet is finally becoming reality.
Digital wallets are accounts online that remain persistent across multiple devices. Another way of saying that is to say that you can access one of these digital wallets from anywhere you have an Internet connection. Customers can pre-load these wallets with whatever dollar amount they choose, and can receive money from others as well.
The first benefit to note is that these transactions are fast. Money is transferred quickly, so the user always knows what he or she has available in the digital wallet. In addition, wallets are loaded from the bank account, so they are separate spaces customers can use to track spending money.
Currently, adoption rates are rising as more and more individuals utilize smartphones.
Businesses are also shifting away from the cash only business model that had been so popular throughout modern history. Cash is becoming a big liability to store on the premises of a business, and credit card technology is beginning to fade as digital wallets make their debut.
The reality is that these payment systems will most likely help secure the finances for a great many people who struggle with their current bank accounts. Fewer fees and faster transactions mean most people will see greater control over their bank accounts and their money in the next few decades.