5 Things to Know About Digital Wallets

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Today’s consumerism has led the FinTech industry to innovate the way payments are made and come up with smarter, more convenient payment solutions that reduce (and maybe even eliminate) the need for cash. Imagine never having to bring cash, counting change, or touching dirty paper bills.

That can happen pretty soon, as digital wallets are slowly becoming the new tap-and-go payment method — from Apple Pay to Google Wallet to Square to cryptocurrency.

In Japan, for instance, the use of digital payments has gained significant popularity, along with the increasing acceptance and adoption of cryptocurrencies.

Benefits Beyond Convenience

Clearly, cryptocurrency and digital wallets pose a multitude of benefits beyond convenience. Here are some more things you need to know about digital wallets:

Avoid Overspending and Debt Accumulation

Digital wallets are simple and convenient to use but it’s not structured the same way a credit account is. When using digital wallets, all transactions are recorded in the online ledger, which makes tracking easier unlike keeping paper receipts and going through them one-by-one.

Creating and planning a budget is simpler too. When you need a refund, you no longer need to go through a stack of tiny receipts just so that you have proof of purchase. All transaction records are now centralized in a single platform!

As one of the most technologically advanced nations in the world, Japan has made great progress in terms of going cashless. But, to address its citizens’ concerns about overspending, digital wallets such as Noah Wallet are largely prepaid, which means you can only spend as much money as you put in.

Reduce the Risk of Counterfeit Money Funding Terrorism

It’s not just Japan that’s pushing for cashless financial transactions. Other countries like India has been encouraging its people to use digital wallets instead of cash to prevent tax evasion and reduce the risk of counterfeit money being used to fund terrorist groups.

In 2016, India’s Prime Minister Narendra Modi suddenly announced that 1,000 and 500 rupee notes would no longer be valid in the country. 90% of transactions in India are in cash, making it easy for merchants to avoid paying taxes. This move was also intended to curb terrorist organizations that heavily rely on unaccounted for cash.

India started working on digital wallets and cashless transactions way back in 2009 when they launched Project Aadhar to get a computerized identity proof of its citizens and digitize the banking system. By 2016, 95% of the population had digital identity proof.

Prevent Money Laundering

Every country has its unique currency, and each government allocates a huge portion of their budget to make sure that their coins and bills cannot be reprinted by money launderers. Despite working with the experts, money laundering is still a huge global issue.

Governments are considering building their own national cryptocurrency and digital wallet to prevent money laundering and offer people a handier, more convenient way of paying for goods and services.

Singapore and Thailand, for example, are way ahead of the game. Thailand’s PromptPay already has 14 million registrations while in Singapore, Apple Pay and Bitcoin are widely used. Outside Asia, governments such as Israel and Venezuela are taking advantage of the cryptocurrency hype.

Big Companies All Onboard the Digital Wallet Technology

A Thrive Analytics study found that females between the ages of 18 and 29 tend to use digital wallets for large consumer chains such as Target, Macy’s, and Home Depot. More businesses nowadays accept payments through digital wallets, which is why tech giants Apple, Samsung, Google, Amazon, and PayPal are going head to head in developing of the most effective and secure digital wallet.

By the end of 2017, Japan’s digital payments were estimated to have reached $70 billion. The country’s biggest banks are even working together to come up with a unified mobile payment system.

In the Philippines, large department store chain SM has partnered up with PayMaya so that customers can pay for their items by opening the app and scanning a QR code. Additionally, the Dagonoy Public Market in Manila has just started accepting Gcash payments, further proving that a wide range of businesses is now taking digital wallets seriously. Noah Wallet isn’t far behind.

Usage Application Beyond Over-The-Counter Consumerism

Digital wallets will soon go beyond over-the-counter purchases. As businesses and consumers adopt the technology, it will develop as a payment platform that handles anything and everything.

Eventually, you’ll be able to use your digital wallet on real estate closings, mortgage payments, utilities, school tuition fees, and more. Like the Noah Wallet, you can use your digital payment platform transfer funds to merchants, or send money to your family on the other side of the world, or pay for vacations and purchases within the NOAH resort.

Key Takeaways

Once upon a time, we lived without mobile phones. Today, we can’t function without them. The same is true for digital wallets. Soon, countries across the world will go cashless and you no longer need to keep a dozen cards in your wallet or purse. The time will come when people will use digital wallets for all of their purchases and transactions, no matter how big or small. Instead of resisting technology, you’re better off staying ahead of the curve.

For more on how to use Noah Wallet to take advantage of next-generation transactions, read the Noah Wallet Manual today!

Originally published at noahcoin.org on August 14, 2018.

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