Deep, deep dive
What are the pros and cons of using an e-wallet?
- Quick and convenient: The biggest advantage of e-wallets are the ability to make payments quickly, especially in situations where you don’t have cash on you and you’re in a smaller, physical store which doesn’t accept cards (like a kedai runcit). The contactless feature of e-wallets also helps you minimise physical contact in this age of Covid-19.
- Track spending: An e-wallet will always clearly state your balance, which can be helpful for you to plan out your expenses. Some e-wallets also have a built-in expense tracker to clearly show how you’ve been spending your money. This can be helpful when you are planning your budget.
- Rewards and cashback: Some e-wallets give you rewards in the form of points/coins when you use the e-wallet. These rewards can be used to redeem discounts. Some e-wallets also give you cashback after a minimum spend. For example, you could get RM5 cashback for every RM100 that you spend.
- Carry less cash: Using an e-wallet lets you carry around less cash, giving you more security if you ever lose your physical wallet.
- Relies on your phone and internet connection: If your phone runs out of battery or if you lose internet connection, you won’t be able to access your e-wallet, unless your e-wallet comes with a physical card.
- Security: All registered e-wallets usually have security measures in place. But anything electronic isn’t 100% protected. There is still a chance your information can be leaked. So, always make sure you don’t keep too much information in your e-wallet. For example, you only need to key in details for one card to use to top up your e-wallet. That way, if any information gets leaked, your other cards are still protected.
- Spending more than you need to: Some people feel that because e-wallets are so convenient to use, it can make you less careful with spending, because you can just keep topping up your e-wallet when your balance is running low and you want to buy something.