Pros and Cons of Using Multiple Digital Wallets

A recent survey of spending habits has revealed that more than 50 percent of Americans regularly use a digital wallet. The report also brings home the fact that there are dozens of digital wallets available.

That might lead you to wonder whether you are using the right digital wallet. Or if you are in the minority and do not have one yet, it could cause you to ponder which one to choose. But why settle for one? If different digital wallets, like PayPal, Zimpler and Apple Pay, for example, each have pros and cons, why not use all of them?

Pros of using multiple digital wallets

Never put all your eggs in one basket. It’s an old saying, and for many of us it was our first lesson in spreading risk. Digital wallets all take security deadly seriously, but nothing is entirely hacker-proof. You reduce your exposure by spreading your money across different wallets.

Some of the digital wallets out there also have special perks and promos, such as cashback deals or even loyalty bonuses – why not take advantage of as many of them as possible?

You might also want to use different wallets to segregate the different types of transactions you make. If you enjoy playing online casinos, then using Zimpler as a payment method for your casino gaming makes sense (assuming you are based in Sweden, Finland, Estonia, Germany or the Netherlands). You might then use PayPal for online shopping.

Cons of using multiple digital wallets

So far so good. But what about the downsides? These are less obvious but are still worth considering. One is that it can become difficult to keep track of your spending when it is coming from different digital wallets. If you need to budget carefully, it might be better to stick with just the one, so you know exactly where you stand.

The other potential risk is the opposite side of the cybersecurity coin. Yes, putting your money in multiple digital wallets means spreading your risk. But you could argue that it also means exposing yourself to multiple points of vulnerability.

There is also a flip side to the perks and promos aspect – some digital wallets offer more rewards for bigger spenders; in which case you are better off sticking with one to maximize the benefits.

Digital wallets – the more the merrier

Everyone has his or her own circumstances. But the upshot is there are more pros than cons to having multiple digital wallets. If you choose to do so, there are some ground rules worth following, however:

• The biggest security vulnerability is your phone and, to be frank, its operator. Don’t worry about the wallet being hacked at the other end. Instead focus on keeping your phone secure, passwords updated and biometric locks where possible.
• Be organized. Keep track of your wallets, what is in them and what leaves them. That way you avoid unpleasant surprises at the end of the month when you find that all the money you spread around has somehow evaporated.
• Read the user terms and conditions for any and every digital wallet you get. If you don’t know what rewards, perks or bonuses are available, you are highly unlikely to make use of them to the full.