The modern world has produced innovative ideas to make transactions quicker and easier for the average consumer. This has been done by introducing various payment services such as mobile wallets and mobile banking.
Mobile wallets, such as payit, can be used anywhere that accepts cash or credit. You can input various bank cards, loyalty cards, and gift cards into the digital wallet, too, so they can be used while you are on the go.
You can use both mobile banking and wallets to pay any kind of bills or large recurring payments and send money to people in different countries. Most banks have their own specific mobile applications through which consumers can use banking services. While mobile wallets store multiple cards, mobile banking applications are specific to a single account.
If you’re wondering which one is better than the other, you’re not alone. We’re here to answer your concerns!
There are some benefits of digital wallets that make them stand out when compared to mobile banking.
Mobile wallets require absolutely no Wi-Fi or data connection to operate effectively. No matter where you are and whether or not you have internet, a mobile wallet can be used successfully to make transactions.
On the other hand, mobile banking services do need internet if you wished to use them. You cannot log in or even check your account balance if you are not connected to Wi-Fi. This limits accessibility, especially since most daily transactions take place out in public where there is no guarantee of having stable internet.
Additionally, it is dangerous to log in to your mobile banking application using public Wi-Fi because it makes it easier for people to hack into your account.
Thus, for daily use, mobile wallets tend to be better since they are likely to always work.
Digital wallets encrypt bank card information instead of storing your actual details on the app. When you use the wallet in public, the payment cannot be easily traced back to your bank account since your account details will not show up. As a result, scammers will find it difficult to trace your details, resulting in lower risks of fraud.
Due to this, you don’t have to be afraid to use a mobile wallet out in public, which is essential for day-to-day payments.
You can use digital wallets at any store that accepts cash or credit cards. So whether you are getting coffee, gas, or shopping in a mall, your digital wallet can be used anywhere at no additional cost!
These wallets are ideal for people that tend to forget their wallets at home. You may forget cash, but chances are that you will have your cellphone on you at all times.
The absence of tangible money also comes in handy when going to places late at night. If your phone gets stolen, a thief won’t be able to access your wallet unless they can crack your phone’s code.
With mobile wallets, you can also pay for yourself on a night out without burdening those accompanying you. You cannot use mobile banking this way. To pay through your account, you must carry a bank card or cash alongside a mobile banking app which defeats the purpose of going wallet-free.
Mobile wallets, come with their own set of benefits in the form of discounts. With different promo codes, they can offer various cashback offers which can help save money.
For example, payit has the following cashback offers:
These cashback offers are typically not offered by mobile banking services does. Over time, the cashback really builds up! Why pay full price when you can get cashback?
Everyone has been a victim of forgetting their loyalty card at home when they realize they could have used them to get or redeem points. Thankfully, with mobile wallets, all your loyalty cards can be added on the app so they are on you at all times! Every time you make a purchase, you can get your points and can use them to get money off your next transactions or for little gifts.
This also works for gift cards that you may have received from friends or family. Instead of using your own money to buy something and then regretting it later when you remember you had a gift card, you can save yourself the trouble and scan the card straight from your phone.
In this way, the mobile wallet can help you get the best bang for your buck!
Mobile wallets offer additional services that make it quick and easy to split bills when out with friends or family. You can input the value and divide by the number of people in the apps and then pay your own share through it seamlessly.
This makes the hassle of paying at the end of a fun hangout session much better and eliminates the awkwardness that comes with it. All mobile wallets may not have this feature, but big ones, such as what payit does.
Most people tend to opt for cash on delivery since it is safer to pay once the order is in your hands. Mobile wallets allow you to go cashless on delivery. This option combines a sense of security with the ease of not having to scramble around the house for a change.
With mobile banking, the only way to pay for orders is in advance, and not all restaurants accept bank transfers. Paying in advance can also be bothersome if you end up getting incorrect items.
However, some features are restricted to mobile banking. These can be very advantageous and are not shared by mobile wallets.
For someone trying to stick to a budget, it may be easier to do so when using mobile banking. This is because the apps show the exact amount of money in your account, which helps you decide whether you can afford to spend a specific amount on something.
Mobile wallets will just show you how much you have in the wallet, but not your account. While they also give you a lot of freedom and ease of purchasing, they may make you more likely to waste money. Making well-thought decisions is easier when your bank balance is written in large bold letters every time you open your mobile banking app.
A new method of depositing cheques has recently been introduced: by taking pictures of the cheques. By using a mobile banking application, you can have a cheque deposited within a few minutes instead of having to go to an actual bank. Not only do mobile wallets not have this specific feature, but they cannot integrate with cheques at all.
You can also easily view what cheques have been deposited, their amounts, and the dates they were deposited on. This can help you keep your money organized.
Using mobile banking, you can review any pending transactions through an easy-to-navigate interface. To ensure that all your payments are sent on time, you can approve them from anywhere, as long as there is an internet connection.
Most banking applications come with two-factor authentication. This means you will have to input a code every time you log into your banking app. This adds a layer of security to the app so that not just anyone can get in if they somehow have access to your cellphone.
The drawback with digital wallets is that not all apps have an option for two-factor authentication. Even if they do, it’s usually not compulsory to enable, and often people forget to do it.
Still can’t decide what is right for you? Here are the benefits of mobile wallet over mobile banking, and vice versa, summarized:
| Mobile Wallets | Mobile Banking |
| Convenient for use on the go | Quicker than going to a physical bank |
| Saves space, since one does not need to bring a wallet | Access to banking at any time and place |
| Quick transactions | Can deposit cheques by taking pictures of them |
| Helps protect against fraud | – |
| Cash back and discount offers | – |
Mobile wallets are much better than mobile banking because they offer features that allow you to go completely wallet-free! There is nothing that cannot be done through a mobile wallet that could have been done using a physical one, and it also comes with added protection from thievery.
Mobile wallets are becoming an essential feature of the evolving modern world, and everyone should start using them as soon as possible!