To understand this, I’ll recommend you read What Is Digital Wallet, and How Does It Work.

Then, you can go through this.

So What Are The Advantages Of Digital Wallets?

  • You don’t have to carry weight in the form of physical wallet or ATMs around again. With digital wallet, all your money is virtual.
  • For companies, digital wallet will give them direct access to data of consumers, thereby making it easier to predict consumer behavior and products they’ll need.
  • Many developing countries using digital wallets may be able to increase their participation in the global financial market. For example, ICOs.
  • Digital wallets allow users to transfer funds to friends and family residing in different nations just like is happening.
  • It requires users to authorize every transaction.

Disadvantages Of Digital Wallets

  • It is not fully available worldwide. There are still nations where policies are yet to be made to permit digital wallet usage.
  • It requires your device to have a charge. If your phone is down, you can’t make transactions. This will definitely affect third world nations more.
  • It doesn’t eliminate your security risks. Yes, it doesn’t. It however makes it more complex. There’s been lots of speculation of how this revolution will cause more fraudulent activities.
  • It could encourage reckless spending. Sure. It will. Since companies will have access to your spending data, therefore they can target you with specific ads so that you can buy.
  • Loss of privacy, between users and service providers. It’s true that it’ll be hard for your account to be hacked by someone else if you don’t give them your PIN. But the companies who provide the services will have access to our data.

Finally, digital wallet will make life easier and faster. We just need to take precautions as we use the devices like upgrading your software, keeping your PIN to yourself and not sharing it with anyone.