October 30, 2024
Nowadays, cashless options such as credit cards and e-wallets have become the go-to payment methods for most Filipinos when they shop online. This preference is largely because e-wallets and credit cards offer convenience, security, and exclusive perks that aren’t available with cash, direct bank transfers, or cash-on-delivery.
For instance, credit cards allow for installment options and rewards such as cashback and points. By choosing the safest credit card available, shoppers can also rely on fraud protection and highly secure payment systems, thus lessening worries about unauthorised card usage. Similarly, e-wallets provide quick and easy payments, promos, and cashback offers.
If you happen to have both, however, you may be wondering which you should be using more often when paying for online purchases. To help you decide whether it’s much better to use your e-wallet or your credit card for a particular online transaction, here are some points to consider:
Before reaching for your credit card or opening your e-wallet app to pay, first consider the amount that you’re spending for the purchase. If you’re paying for small, everyday purchases such as food delivery, prepaid load, or streaming subscriptions, an e-wallet is often the better choice since transactions are quick and hassle-free. However, for big-ticket items like gadgets, appliances, or plane tickets, a credit card may be more practical because it lets you tap into a larger credit line to extend your budget and allows you to spread out payments through installment plans. You’ll also benefit more from cashback or any other rewards structure that the card may have.
Both e-wallets and credit cards have strong security features, making them excellent payment methods for your online purchases. Still, they can differ on what level of protection they can offer you. They use measures such as PINs, one-time password (OTP) verification, and biometric authentication, among others providing you with top-notch security for local transactions. However, credit cards offer stronger fraud protection and chargeback options, making them a better choice when shopping on unfamiliar websites or international stores.
Some credit cards like the Landers Cashback Everywhere credit card by Maya even go the extra mile, with dynamic CVVs that are only valid for 24 hours; when you check the card’s details through the Maya app, a new CVV will be generated. This means that even if your card gets stolen, fraudulent transactions won’t go through because the security code has already changed.
One of the best perks of using e-wallets and credit cards for online purchases is that both methods can provide you with different kinds of rewards, depending on your provider. If you want instant discounts, cashback, or discount vouchers, e-wallets are ideal to use because providers frequently run promos that let you save money from each transaction. Some online stores also have exclusive promos depending on the e-wallet used during checkout, helping you net more savings.
If you’re looking to earn cashback, reward points, or travel miles on larger expenses, however, then credit cards can provide more value. This is because spending more with your credit card can often yield higher points or cashback rates, making them perfect for frequent shoppers. Some credit cards also reward bonuses when shopping from specific online stores, which you can take advantage of for more rewards and savings.
Installment options exist for both payment methods, though the choice mainly depends on the shop you’re purchasing the item from. Some e-wallets now offer credit options that can help you afford larger purchases by providing an extended repayment period, which means you have a longer time to pay for the amount borrowed. Thus, if an online store doesn’t offer installment plans at all, you can simply use your e-wallet’s credit line to spread out the payment.
Meanwhile, some stores may offer 0% installment plans for certain credit cards only, making them the best option if you happen to have a qualified card. Most credit card providers also allow you to convert purchases into installments for no extra cost. Just make sure to read your card’s terms carefully and to make your monthly payments on time to avoid penalties.
Choosing whether to use your e-wallet or credit card can also depend on the store’s accepted payment options. You may find that local merchants readily accept e-wallets as a payment method, making them your most convenient option for quick purchases. E-wallet payments are also well integrated into local e-commerce platforms such as Shopee and Lazada.
Credit cards, on the other hand, can be used both locally and internationally with ease. Many foreign retailers and subscription services only accept credit cards, making them your best—and sometimes only—option if you want to purchase from international online stores. This then makes credit cards the more versatile option when paying online, regardless of the geographical location of the store.
If you want better budgeting and expense tracking, an e-wallet is the way to go because you can only spend what you load into it. Moreover, e-wallets can also be linked to your bank account, which makes it easier to just top up through your app compared to withdrawing additional money from an ATM.
However, if you need spending flexibility and would want an extra source of funds should emergency expenses occur, then a credit card lets you make purchases even when cash is low. Do keep in mind that unpaid credit card balances incur interest charges, so make sure that you’re disciplined enough to swipe responsibly and pay your due amount each month to avoid extra fees.
Both e-wallets and credit cards have their advantages, with the best choice often depending on the situation or your preferences. It’s ideal to use your e-wallet for smaller, everyday purchases and quick transactions. Meanwhile, it’s often better to choose your credit card for bigger purchases, chargeback assurance, rewards, and for when you need 0% installment options. By knowing when to use both, you can maximise savings, convenience, and security when shopping online.
