Cash might soon be a thing of the past. Who needs cash? When you can just as easily pay with an E-wallet? with a single click from your app money is transferred worldwide from someone sitting in middle easts desert camp to a Company selling video in Demand in Los Angeles 🙂
Digital wallets and our smartphones are becoming more and more widespread. What systems are on the market? How do they differ from one another? And how safe are they?
Soon your hand might replace your wallet.
A Scanner authorizes the payment and that’s it. Businesses are picking up on the trend and offering more e-wallet payment services.
Facebook even announced its app recently called Facebook Pay Pay directly from your favorite apps like Facebook, Messengers, Whatsapp, Instagram.
Which Digital Wallet to choose?
That might depend on where you live. And what you plan to use it for. a bouquet without any cash. Too many it’s already an ordinary part of daily life. His wallets let users pay quickly and easily.
There’s a wide range of apps to choose from. You can get e-wallets through your bank, then it’s an extension of your regular account on your smartphone. Other e-wallets are connected to your mobile plan.
They conduct transactions via text message. There is also a growing number of other providers.
Whether global players for worldwide payments like Google pay or PayPal, or E-wallets for certain countries and currencies like Ali pay in China or Paytm in India.
The main principle stays the same, e-wallets are for storing money. The balance usually comes from a bank account or a credit card or is topped up in cash. The app lets you pay by clicking a button scanning a QR code or with near-field communication.
I use e-wallets mostly because they’re convenient. After all, you can play everywhere and anywhere on your mobile phone. And it takes away the hassle of dealing with cash or dealing with physical credit cards. With e mobile payments, you can just scan a QR code, and the money comes directly from your bank account.
Users should look out for fees though. Often sending money to friends is free of charge. But many providers make a profit on other transactions. PayPal charges 5% on international money transfers for instance, which can become costly in the long run. So here’s a checklist for finding the E-wallet that’s best for your needs.
What countries and currencies does it work in? How can I top it up? What payment options do I have? And what does the option I use most cost? And, as always, it’s also important to look out for your security and personal data.
FinTech expert has specified some basic advice for choosing the right provider.
Multi-Factor authentication
Look for multiple-factor authentication, look for making sure that there are backup practices, and make sure that they are warning you about how you should and shouldn’t be interfacing with the technology. Whether or not my money is safe depends on how I keep it.
Leaving my wallet out is probably a bad idea using 1234 as a password for my e-wallet. Also not the best, but providers need to maintain security standards technically speaking, most E-wallets by serious providers are well protected.
Data Encryption
The data is encrypted and stored on secure servers. It’s recommended to use e-wallets that have been checked by at least two IT security companies. One risk remains humans, passwords need to be protected. And e-wallet users are a popular target for phishing attacks, which enable criminals access to what is digital wallets.
This is the power and the danger of mobile banking. You are your bank. And if you have bad security practices, you lose your phone or something happens then you are the one who is going to suffer the consequences of that.
2 Factor authentication
Like online banking. Most e-wallets use two-factor authentication, for example, password and fingerprint. What if a transfer fails though, some providers have accommodating rules similar to a bank, but that is not a given for an E-wallet usually circumvents the middlemen making a profit.
And if there is no longer an intermediary there who’s making money off of you then you have a danger that you’re not going to get that chargeback. There’s nobody to charge it to send it back to you. So evil They do come with some risks. But does money always? How does mobile payment compare to other common methods? We took a closer look
How Secure Are E-wallets?
E-wallet compared to using a credit card online? The only way to answer that question is it depends. It depends on the wallet. And on the online payment system, there are you wallet systems that are more secure than some of the online payment systems that are in use today. And vice versa.
I would prefer the wallets to use the credit card in the store. Because you’ve removed the human element, you don’t have the cashier taking your credit card, potentially, you know, copying it or memorizing it or whatever. An e-wallet is more secure in the sense that you don’t have to worry about carrying physically keeping the cash with you all the time and having enough to pay.
Every time I give my kids cash, they seem to lose some of it. For example, if they never lose their phones. So when it comes to security e-wallets make a good impression. But what about user data, any electronic transaction leaves a digital footprint.
When it comes to E-wallets. That information is not only available to my bank, but also service providers like Google or PayPal, and digital wallets just another step towards transparent customers.
I mean, cash has certain anonymity to it that people like and that you don’t quite have in the same way as with digital currencies.
Digital transactions create footprints, which many wallet providers also use data about payments. Absolutely as being used about you. huge industry. People make lots of money by analyzing payment flows.
For many users, however, the advantages outweigh the risks. All these private corporations know exactly what your spending behavior is like what you are like as a shopper, your behavioral patterns, essentially. And that might be uncomfortable for some people, but I personally, it’s not a big issue. I would rather my transactions be tracked. But safer, rather than not tracked, but not safe.
In the end, we need to choose what’s most important to us. Fun fact, in Germany, we’re huge fans of hard cash. Hardly anyone uses e-wallets here.
Other European countries are less cash crazy. in Scandinavia, more people prefer mobile payment. And in many Asian countries, it has long become a part of daily life.
China expects half a billion customers to use e-wallets in 2020. And it’s no wonder it’s simpler, less expensive, and quicker than your classic bank. If I wanted to transfer money from my regular bank on a Friday afternoon, for example, I’d have to wait until Monday morning for it to be processed. When I use my e-wallet.
The recipient instantly receives the money along with the message that it has arrived. And the best part is, I don’t always need a bank account for that.
The World Bank estimates that globally about 1.7 billion people don’t have access to a bank account. For them, e-wallets could enable access to the financial system.
One example is the digital payment system m paisa.
It started in 2007 in Kenya, and it’s available in other African countries in India and parts of eastern Europe. The account is linked to a mobile phone number. Users can pay bills or transfer money by text message. A large network of M pays agents allows for the digital wallets to be topped up.
[the_ad id=”3696″]
One of the interesting things about electronic wallets is that in places where the banking system is less developed, the least developed you find the highest levels of comfort with using digital wallets simply because people will grasp onto any alternative that works.
Another boost I think most likely in the next five years we will see big movements towards global e-wallet capabilities because of players like WeChat and Facebook and others There’s this massive platform reach, pushing the sector forward. And as they sort of help breaks down the barriers with governments to get on board and allow this cross-jurisdictional use country to country use of these kinds of currencies, it will become easier and easier.
E-Wallets or Cryptocurrencies?
Facebook’s idea isn’t necessarily new. E-wallets using cryptocurrencies, like Bitcoin have been around for years. They encrypt transactions with blockchain technology, which makes them particularly safe.
cryptocurrencies only exist digitally and are not regulated by any bank. The most well-known ones are Bitcoin Ethereum and ripple.
The term Crypto comes from the Greek word kryptos, meaning secret or hidden. It points toward the cryptographic encryption used for all components of the currency system.
This technology is much safer than usual encryptions. All information from balance to the transaction is secured in a blockchain, meaning in a cryptographically encrypted protocol. This way, user data is stored safely.
Depending on the type of cryptocurrencies, some of them are fully anonymous, and nobody can see your payment history, and that is a much more secure way of maintaining anonymity and payments. It could potentially be as secure and more secure than cash.
But this anonymity only comes with specific cryptocurrencies.
Advantages of E-Wallets
- The advantages of digital wallets are they’re easy to use.
- They allow for quick transactions
- comes with a high level of security,
- Level of convenience when it comes to tracking your spending.
- receipt for Tax & accounting purposes.
[the_ad id=”3696″]
