The expansion of FinTech (Financial Technology) unlocks new trends that help people leverage their income through investment and advanced banking solutions. One such progressive step to save the environment with minimum paper wastage is cashless transactions, which have been introduced to ease secure and convenient payment. According to the report released by the World Economic Forum, digital solutions can significantly reduce global emissions by 20% upto the year 2050. Digital wallets securely store payment information and take less time to process transactions conveniently anytime and anywhere.
So, how do these digital wallets raise the sustainability standard? Let’s take a quick review with an extended understanding of digital payment options and how this supports saving the environment.
Table of Contents
What is Digital Wallets & How It Works?
Digital wallets are software or electronic devices that enable individuals or businesses to make electronic transactions. They are also known as e-wallets, which are embedded with user payment information and help users make payments to vendors with a simple tap and click, eliminating the use of physical cards. From banking to retail shopping, digital wallets are expanding with rapid adoption to offer more discounts, cashback, loyalty cards, and others. With the growth of digital banking, e-wallets are helping to reduce carbon footprints, increase efficiency, and facilitate seamless payment integration. One such core example of a digital wallet is PayPal, which is known for making international payments.
The user enters their card information into the site or digital wallet application to use digital wallets. Details are kept encrypted for secure payments, and once users unlock the password to use the app and authorize it, they can easily make payments for third-party websites. Smartphone users can also close their phones to contactless terminals to complete payments.
Are Digital Wallets More Sustainable?
With the rising concern for environmental depletion, digital wallets are emerging as a solution for sustainability. Online payments include cards made with synthetic plastic PVC, which is non-biodegradable and produces significant greenhouse gases. In addition to this, digital wallets are considered to be safer and significantly reduce environmental costs.
If you are unaware of the waste physical receipts can create, receipt production in the United States consumes over 9 billion gallons of water, 3 million trees, over 4 billion pounds of CO2, and 302 million pounds of solid waste yearly. Extraction of these resources might damage the climatic conditions and challenge the environment. Digital wallets are becoming a more conventional choice to avoid hefty costs and encourage more sustainability.
Digital wallets also support green finance initiatives that help achieve sustainable development goals. Online payment results in countless innovations to expand cross-border transactions, access to payment services, and focus more on environmental sustainability.
Key Factors for Digital Wallets As Sustainable Solution
The contactless transaction has led to the integration of sustainability, and several factors contribute to saving nature and reducing carbon footprints to a beyond benchmark:
#Paperless Transactions
Digital wallets have eliminated the need for physical receipt cards and have significantly reduced paper waste.
#Energy Efficiency
E-wallets also contribute to low energy consumption by using efficient data centers, blockchain networks, and transaction processing systems.
#Sustainable Investments
Digital wallets also offer sustainability through investment options or savings plans focusing on green or sustainable funds for financial growth.
#Carbon Offsetting
E-wallets can integrate features allowing users to offset their carbon footprint through paperless banking and investment transactions.
#Green Transaction
Digital wallets also offer rewards and incentives for making eco-friendly purchases by choosing sustainable products and services.
#Low E-Waste
Digital wallets are replacing card payments by reducing e-waste by providing an integrated solution instead of multiple cards.
Is It Safe to Use Digital Wallets?
Electronic wallets are backed with advanced encryption that protects your credentials and password, so using them on your personal devices and smartphones is safer. E-wallets are configured with high-security features that protect users, with the additional options of two-factor authentication, one-time PINs, and fingerprints. For extra safety, you can keep your password protected and not share it with others, monitor for any suspicious activities, and disable your device’s share option.
Why Choose Digital Wallets as a Payment Solution?
Online payment through virtual wallets has gained more popularity owing to its multiple benefits, such as ease of online payments. Here are the following reasons why you should choose digital wallets to make online buying:
#High Security
Digital wallets are password-protected, adding a layer of security with extra biometrics and authentication features.
#Quick & Easy Transactions
E-wallets support simple and easy payment transactions with just a few clicks and pre-filled details and information.
#No Minimum Balance
Users can choose any amount they like, so there is no minimum account balance requirement for easy, hassle-free payments.
#Easy to Use
Users can easily access it anytime and anywhere; they can simply log in for an account through their smartphones or other devices with an internet connection and linked bank accounts.
Go Cashless With Digital Wallets!
Digital wallets are becoming integrated solutions for hassle-free transactions. They are based on QR-enabled technology, simplified payment processes, and a chatbot for easy assistance. With digital wallets, you can enjoy seamless payment integration, from fund transfers and ticket booking to electricity bill payments. From a simple registration process to flexible payment addition, you can enjoy many benefits for effortless transactions.
FAQs
Is there an upper limit for adding money to digital wallets?
It depends on which digital wallet you opt for and the nature of the transactions, which should make them easy to complete.
What are the different types of digital wallets?
Several types of digital wallets, including open, closed, semi-closed, crypto, paper and blockchain wallets, are being used for secured payments.
Enlist a few digital wallets that are popularly used for online payments?
Some digital wallets are Apple Pay, Google Pay, PayPal, Samsung Pay, WeChat Pay, Paytm, Venmo, and Dwolla.
What are some key features of a digital wallet?
A few key features of digital wallets are invoicing & transaction reconciliation, multi-asset accounts, expense tracking, account management and payment history.
