Why are digital wallets booming? Ultimately, the greatest reasons for the growing popularity of mobile wallets are the benefits of increased security, flexibility, and convenience. Every year, more consumers employ digital wallets to store credit cards and debit cards and even save loyalty card information on their cellphones, wearables or other mobile devices.
According to a recent poll by MENA payments solution provider Checkout.com, more than half of the population in the UAE uses digital wallets. This study aimed to determine how the usage of digital wallets has increased as online payments have increased. The study found few differences between men's and women's online buying preferences, showing that digitisation needs to be appealing across the genders. However, younger consumers have a wider attraction for digital wallets. The research shows that 18 to 24-year-olds prefer digital wallets at a rate of 16 per cent compared to 25 to 34-year-olds at a rate of nine per cent.
The report also reveals that 28 per cent of the UAE residents use wallets to send funds to friends and family, showing the popularity of peer-to-peer transactions over traditional bank-to-bank transfers. Digital wallets also stand to shake up the multibillion-dollar remittance market in the Gulf, with a third of the UAE residents stating they are using digital wallets to send funds overseas.
If a growing chorus of predictions holds, 2022 may go down as the year that the use of digital wallets became a majority practice in the UAE and globally. In the payment landscape, the Covid-19 pandemic has led consumers to prioritise digital payment options, including digital wallets.
Do you ever get tired of having to dig a credit card out of a wallet or count out cash? Do you worry about having your information stolen when you swipe a card or not having enough cash on hand? A digital wallet may be just the thing you need.
Having access to your credit card and banking account without needing a physical card or cash makes shopping a lot easier. In-store purchases can be made with a simple swipe of a smartphone. And you don't have to supply sensitive personal and financial information when making online purchases.
Digital wallets can be used for more than just purchases. They can be used to pay bills, make deposits, and transfer funds as well. To send cash, users simply choose a recipient, enter the amount and authorise the transaction.
If you haven’t jumped on the bandwagon yet, keep reading for five reasons digital wallets are gaining popularity.
Reduce fraud These wallets use random payment codes that cannot be used again and often rely on certain security features, including biometrics, to authorise a payment. Furthermore, your full card account number isn’t displayed anywhere in a mobile wallet, meaning prying eyes won’t be able to capture your card number for future use. In addition, your transactions are covered by the same security and privacy protections as your physical cards.
Saves time With a digital wallet, you can pay quickly by holding your phone over the payment terminal and verifying the purchase. Most transactions can be completed in just a few seconds.
Customise wallet contents In addition to credit and debit cards, certain digital wallets also can store loyalty cards and gift cards, allowing you to have them on hand at all times – without putting a bulge in your wallet.
Shop on the go Forget about typing in card numbers when shopping online from your phone – you can pay for some purchases with your mobile wallet. Using a mobile wallet instead of a card on file when you shop online means you can reduce the number of places where your card numbers are stored, without sacrificing a speedy checkout.
Receive rewards If your card offers cashback or other rewards, you’ll still receive those when using that card in a mobile wallet. When you always have your virtual card on hand, it may even be easier to rack up rewards.
Why choose AlfaPay?
Continuing to pioneer in the online space, Alfardan Exchange launched AlfaPay as the perfect cross-border money transfer companion. The application is a one-stop destination for all your needs, including:
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