A digital or mobile wallet, also known as an e-wallet, is an online service or software program on an electronic device that allows one party to make electronic transactions with another party using currency units for goods and services.
Most wallets allow for the same basic functions of sending, spending, banking and investing. However, some wallets even offer their users rewards in the form of points or cashback.
If you are wondering how you could use these wallets to make the most of your money, just continue reading these 4 Tips to Make the Most of Your Mobile Wallets!
1. Choose the Right Type of Wallet for You
There are numerous payment options and apps out there for you to use. Selecting one that is compatible with your phone and which also best meets your needs is key. If you frequent an e-commerce service often, it would be apt to use a wallet that is compatible with that app.
It’s not just about the money. Mobile wallets store your loyalty cards and reward accounts. While some wallets even have easy steps to earn a little extra through referrals, rewards, coupons or discounts, like the free cash app.
2. Analytical Dashboards and Diagrams
Tracking personal financial health over time is essential for every customer. We all need to stay on top of our money, no one wants to go overboard with their expenses. The majority of electronic wallets offer some sort of analytical dashboard allowing you to view and analyze your personal financial operations through reports, figures and diagrams.
Mobile wallets make spending easy and so has online shopping, so make sure you track where your money in your wallet is being spent. Apps tend to offer weekly, monthly or annual spend reports. This could help you plan your finances and budgets in a smarter manner.
Simple actions you could take with your wallet:
- Setting a budget for each category of expenses
- Creating categories for expenses and income
- Sending reminders when users are close to exceeding their budget
- Sending reminders when the bills are due
- Setting savings goals
3. Mitigate the Risk of Fraud
Digital wallets provide you with the ease of spending a set amount of money; money that is in your wallet. This is beneficial as you don’t have to reveal your full bank balance while transacting. Mobile wallets are ideally best for relatively smaller purchases.
Just as you would safeguard your credit or debit cards, the same goes for your e-wallets. Don't forget to protect your phone by having enabling your phone's security measures, a lock-screen screen with a pattern or PIN, while your wallet app with a separate PIN or pattern, if possible.
4. Transact Faster
A key feature of mobile wallets is fast and efficient bill payments. People now prefer to pay their bills (phone, rent, loans, to name a few) online. Mobile wallets provide an effortless bill payments solution.
Apart from paying bills on your own, mobile wallets allow you to split bills with other individuals. For example, this feature allows users to split the bill's payment when going for lunch with friends. This allows you to simplify the task of figuring out who owes how much or who owes who, it's a no-brainer.
If you are comfortable with electronic or mobile wallets, use them for saving and investing as well. You'll be able to increase your knowledge about money, saving and investing by reading interesting finance blogs. Some wallets even offer these in-house. You'll even find that most wallets offer investment options that also help you save on taxes. The benefits are endless!