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BackWhich payment method do you prefer: digital wallet, card, or coin? Which one works best for you, and which one is safest?
In today’s blog post, we’ll have a look at each payment method, their pros and cons.
Digital Wallet Definition
A digital wallet is a software-based system for making e-commerce transactions. Having a digital wallet, you can easily make purchases online using your computer or any mobile device.
Generally, your bank account is linked to your digital wallet. Your user credentials are securely stored and verified during transactions. Basically, digital wallets are used not only for online purchases but also for user authentication. A digital wallet can store all the user information including credentials, transaction history, and personal data.
When used on mobile devices, a digital wallet is like a basic bank account that allows you to store, save, and spend money safely. All you need to do is transfer funds into your digital wallet to manage your money from your mobile device.
Pros and Cons of Digital Wallet Payments
If we wrap up the pros:
- A digital wallet is easy and quick to use, making it an extremely convenient payment method.
- A digital wallet clearly helps you control how much you spend. You are the one to transfer money into your digital wallet, which means you can’t spend more funds than you already currently have unless you decide to transfer more.
Where there are pros, there are cons:
- You depend on your mobile device. For some, it even means addiction, but let’s focus on the payment methods.
- There are limited payment options as you can’t pay with your digital wallet everywhere, obviously.
- Safety issues. Digital wallets are vulnerable. If a hacker gets your information while you’re transmitting it wirelessly, you’ll end up with your money gone.
THE Card
Even in the digital age, the plastic debit/credit card is still going strong. No RIP on the horizon. Digital wallets and coins need to work really hard to eliminate cards from the equation.
In our previous blog posts, we mentioned that the debit/credit card is #1 retail payment method, especially with the emergence of contactless payments. If you’re new to this, a contactless payment means you just need to touch a PIN pad with you debit/credit card for the payment to go through. What could be easier?
Hands down, there are mostly pros to using plastic cards. Lightweight to carry, always at hand. Even if you happen to lose one, you can cancel your card instantly by contacting your bank.
The World of Coins
If you’re a crypto enthusiast – like we are! – you may opt for using digital wallet for cryptocurrency frequently.
How to pay with crypto? There are two general ways to pay with a coin of your choice:
- Using a private – cold or hot – wallet;
- Using an exchange wallet. Here, please remember that any exchange charges a fee you need to calculate before making a transaction. A lot of payment errors happen because users miscalculate fees.
Blockchain technology was designed to be anonymous and very secure, which means that crypto wallets are at the front of secure payments. It might get tricky with public and private keys though. If you remember from our previous blog posts, losing your private key is an irreversible event that results in losing your digital funds for good.
The thing we love is that more and more payment options are becoming available for crypto holders in each industry. By the way, if you have bitcoins, be sure to check out our article that will give you cool ideas for your next purchase.
Which payment methods do you prefer… or do you use all of the above? Feel free to hit our comments section!
Have a crypto weekend!
The CoinMetro Team