In the digital world, cash is being left behind. More people are turning to credit cards and digital wallets to keep their money safe. Though, why should one be chosen over the other? Let’s compare the two and find out.
Digital Wallet:
It is a secured software-based system for storing user’s payment information and other details for numerous payment methods and online transactions. Digital wallets allow us to transfer payments around the globe from your laptop or mobile phones. In Pakistan, Skrill and Perfect money are mostly used by freelancers and traders for their transactions. E-currency exchangers are available in Pakistan who exchange your Pakistani rupees to dollars and vice versa. Perfect money in Pakistan is widely used and to make transactions you have to use an e-currency exchanger in order to exchange your Pakistani rupees to dollars or dollars to Pakistani rupees. The same is the case with Skrill in Pakistan; you have to buy Skrill dollars in Pakistan to deposit money into your Skrill account.
Advantages of Digital Wallet:
- The data stored in a digital wallet is secure and encrypted.
- It can be used for global transactions within seconds.
- No need for filling a variety of forms for opening your account like a conventional bank account.
- It’s a convenient option for online shopping.
Disadvantages of Digital Wallet:
- Digital wallets may charge you more to process payments. For example, Skrill charges 1% to 5% for a single transaction.
- You will always be dependent on your phone or laptop to carry out the transaction.
- A receiver must have the same digital wallet to receive payments from the sender.
Credit Cards:
A credit card facilitates the cardholders to borrow funds which can be used to buy goods and services from merchants that accept the card for payment. The condition for a credit card is that the cardholder should pay back the borrowed money with the addition of applicable interest and other extra charges. Banks provide credit card facilities to their users under strict conditions. A credit card can be connected to your digital wallet for depositing and withdrawal of your funds. It is easy to use and can also be used from the mobile app of the bank. Plus, it allows you to carry all your money in one, lightweight card!
Types of Credit Cards:
- Reward credit cards.
- Branded versions of credit cards.
- Secured credit cards.
- Debit cards.
Advantages of Credit Card:
- You have the choice to borrow funds for emergency usage.
- It can be connected to your digital wallets.
- No fee for foreign transactions.
- A credit keeps you updated through your monthly expenditure through a monthly account statement.
- Credit holders have perks of having special discounts and bonuses.
Disadvantages of Credit Card:
- By using a credit card, most people overspend because of the easy use.
- There are interest charges while shopping and making transactions.
- You can be scammed while using credit through different tricks.
- You have to pay the borrowed fund within the due time. Otherwise, the interest on the fund will increase every day.
With this guide on digital wallet vs. credit card, Perfect money in Pakistan, and why you should buy Skrill dollars in Pakistan, you can choose which one is the best option for you.