India has nearly 245 million smartphone users. Internet access is reaching the last mile and improving with each passing day. There’s hardly anyone who is not using a digital wallet. It’s easy to download and convenient to use.
Anyone can sit at home, in a car or at a restaurant and download the app of a digital wallet. One can easily register on the wallet using a mobile phone number and start using the digital wallet.
Digital wallets are a great avenue to save money. Millennials are using digital wallets extensively and are using a few tricks as below to make the most of the limited money available at their disposal.
1. Incentive on purchases: Digital wallets such as PayTM, Mobikwik and FreeCharge have lined up a host of merchants from whom you can purchase what you need online. On most purchases, these mobile wallets are offering incentives. The incentives and cashback are an excellent way to save money. For example: If you buy a mobile phone or air ticket and pay using your digital wallet, you are likely to get a huge cashback which helps you to save money on your next purchase. Apart from this, there are a lot of Paytm Offers available in online portals.
2. Offers and Cashback on payment of utility bills: When you pay your mobile bill, electricity bill, or recharge your DTH services, these digital wallets provide cashback and offers from your favourite merchants for free or at a nominal charge. This helps you to get more value out of your money. Youngsters are using digital wallets to ensure that they don’t have to compromise much on their fun and lifestyle even if they have limited cash in hand.
3. Funding your hobbies: If you love watching movies and use a digital wallet to purchase your tickets, you are likely to receive a good cash back. Youngsters and millennials are often seen funding at least one such ticket purchase every month using the cashbacks they receive on the digital wallet. That’s an excellent way to save money and get more purchase from it.
4. Get rid of ATM and transaction charges: If a customer uses a competing bank’s ATM more than a few times in a month, he is likely to bear an ATM charge. Also, while paying (say a utility bill) using the bank’s debit card or net banking interface at some merchants, you incur a transaction charge, especially if the amount is over and above a specific threshold. Digital wallets can help you to get rid of such charges while giving you the added convenience of payment in one-click.
5. In-app engagements and contests: Digital wallet companies have found an innovative way of ensuring that the customers are glued to their app and keep coming back to the app. New age digital payment apps such as Slonkit – India’s first money management app linked to a pre-paid card, runs a monthly in-app quiz on contextual topics to keep their customers engaged. Customers are saving money by winning cash prizes by answering the quiz questions correctly. Many other apps are running contests in the app and enabling youngsters, millennials and all app users to earn that extra buck.
Millennials and youngsters have cracked the “Digital Wallet” code. If you haven’t already, it is just a click away on your mobile phone. Using digital wallets, every penny earned in cashback and incentives is like a penny saved!