In earlier days, people would not venture out without carrying their wallets with them observed Bahaa Abdul Hussein. The wallet would contain cash and/or credit/debit cards for them to use. Thanks to the advent of technology, digital wallets have ensured people need not carry cash or cards. They can transact using a digital wallet on their mobile phones. A question that comes up is what the environmental impact of digital wallets is. We look at the answer to this question.

Digital vs. Physical wallets

Digital wallets are without a doubt beneficial compared to physical wallets. The following explains how:

  • Digital wallets are secure and no one can steal your cash. Even if you lose your device, they cannot access your wallet without authorization.
  • The biggest benefit of digital wallets is the convenience offered. You need not carry cash and cards. All you need is your mobile phone or other device with an app that serves as a digital wallet.
  • The costs involved in using digital wallets are lower. The cost of cards and ATM transaction fees can make physical wallets costlier to use.
  • Transactions on digital wallets are faster compared to physical wallets.
  • With advances in technology, you can be assured that there are no risks like fraud or hacking.

While the benefits of digital wallets are many, it is important to look at the environmental impact.

Environment impact of digital wallets

With physical wallets, you need currency notes that require paper and ink. It calls for cutting trees and using resources that are scarce. Using a digital wallet allows you to go paperless. It helps in saving on paper, ink, and other physical resources. It is thus a sustainable solution that helps you use your device just like a physical wallet.

There are some environmental impacts of digital wallets. The device you use needs power that comes from a battery, which needs to be recharged. These devices can lead to electronic waste being generated, which is a serious issue. However, when we look at the carbon footprint of digital wallets we find they are lesser compared to the use of physical wallets. Newer technologies can help in further reducing this carbon footprint.

Conclusion

Using physical cash or cards require printing, which has an impact on the environment. A digital wallet ensures your financial transactions are paperless, which is positive for the environment. However, they do use up energy to charge the phone or device. It is a minor issue compared to the overall benefits. Thank you for your interest in Bahaa Abdul Hussein blogs. For more information, please visit www.bahaaabdulhussein.com.