E-wallets have shot to prominence in recent years and look to be here to stay. Recent figures from Juniper Research suggest that the number of consumers utilising e-wallets worldwide is predicted to hit 4.4 billion by the end of 2025.
There is a lot to like about e-wallets and the premise of digital banking – and it brings mutual benefits to consumers and businesses too. It optimises customer onboarding, minimises friction and red tape with transactions, and provides an extra layer of protection for consumers between their digital payments and their traditional bank accounts.
In the infancy of e-wallets, some industries were dubious about their legitimacy, opting to remove them as an accepted payment method. In the iGaming sector, most operators made e-wallets ineligible for their welcome promotions but, based on the current list of bonuses at OddsChecker, that’s no longer the case. In the e-commerce industry, some retailers were reticent to accept transactions through e-wallets in the first instance in fear of fraudulent activity. Nevertheless, the sophistication of e-wallet security, including end-to-end encryption of data, has served to reassure businesses and consumers alike.
To that end, e-wallets have become an increasingly convenient payment option for a host of additional bills and digital services. If you’re yet to explore the benefits of an e-wallet, which is linked to your active bank account(s), these four use cases should help shine a light on the possibilities of digital wallets.
Automate your monthly savings
Do you find it difficult to save money each month? If you have a penchant for a random splurge at the tills, an e-wallet could be the solution to your savings problems. Some e-wallets can automate setting aside money from your bank account, ring-fencing money for future spending without you even feeling it. You can set up multiple savings pots depending on your goals. Revolut allows you to round-up transactions into separate ‘vaults’ to meet your financial targets.
Take advantage of loyalty schemes with preferred brands
Some brands are starting to encourage payments through e-wallets, as they may be cheaper and more convenient for merchants. To incentivise consumers, brands are offering loyalty programs, whereby you earn points or credits for each e-wallet transaction, which can be used towards future payments.
Effective budgeting for your disposable income
Aside from savings goals and targets, you can also use digital wallets to ring-fence funds for all types of spending throughout the month. It could be a pot for eating out, a pot for home improvements, and a pot for new clothes. Each pot is designated a set amount each month and once that pot is empty, your digital wallet notifies you. It’s all designed to help you live within your means.
Make point-of-sale transactions a cinch
Many e-wallets also have native mobile apps that can be used to connect your wallet to smartphones and tablet devices. One of the biggest benefits of this is that the app can be used for point-of-sale (PoS) transactions too, with contactless payments out of your e-wallet, maintaining frictionless money transfers while keeping your bank account at arm’s length of merchants.
The balance, as ever, for banks and e-wallets is managing the expectations and demands of multiple generations of customers. E-wallets are certainly becoming the norm for millennial and Gen Z consumers.
