The E-wallet may sound like a completely new invention for some people, but in fact, it has been with us for quite a while now and it is still developing. This article is going to be about the benefits that an e-wallet provides if it is used properly. But let us start with a bunch of basic information.
What is an e-wallet?
E-wallet is a set of software that replaces physical wallets. It is a digital tool used to store, manage and send your money anywhere around the globe. E-wallet can also be called “a digital wallet” or “a virtual wallet”.
First, e-wallets appeared in public use in the late 90s when they were only capable of storing simple information like how much money is available on your bank account.
Nowadays e-wallets are capable of storing all the relevant information needed to make payments, manage financial activities and send money for buying things. So it is obvious that now they are used by millions around the world for everyday transactions.
How does an e-wallet work?
E-wallets work just like physical wallets, only they have no physical appearance or form. In order to use it, you need to have a computer or mobile device with an internet connection available. You will also need some software for your e-wallet.
To make a payment all you need to do is simply enter the necessary information and confirm the transaction. E-wallets are used for paying for things mainly online and for the most part of the time via the Internet. That is why you need to have a device with an internet connection available at all times in order to use it.
Some in-site shops have innovative terminals that enable you to use your e-wallet there, but I would not count on it every time I go out. E-wallet is still not common enough to be used instead of credit cards.
Benefits of using an e-wallet
Security
E-wallets are one of the most secure ways to store your money and make online payments. You can protect it with a password or additional security software. This means that even if somebody gets access to your e-wallet you will be notified about the unauthorized access. You then have enough time to block your e-wallet from being used by an unauthorized person
And that is not all! Some e-wallets come with extra security features. For example, passwords must be changed once in a while. There are also e-wallet services that support 2 levels of authentication. This means to access your account one should have both a physical card and pin or password.
If your phone has a fingerprint scanner you can use that to make your security system for e-wallet even more secure. Some e-wallet systems have a feature of face recognition which makes it possible to identify the user even by his/her eyesight and only then enable the transaction.
Fast and convenient payments
Another big benefit of using an e-wallet is that, contrary to cash payments, you always get paid instantly. No matter where you are sending money to, or what the currency and exchange rate is – all your money is there immediately. The same can be said about receiving money from other people. An e-wallet is always available for you to receive your payment, no matter where it comes from.
It means that with the help of an e-wallet system you could buy something on the internet and get paid back within seconds! Imagine the amount of time needed to go to the bank and make a transfer. What a waste of time!
And that is not all. E-wallet gives you an opportunity to make payments to friends and family members instantly, at any distance. With the e-wallet system, there is no need for banks or post offices to send money somewhere. Everything can be done electronically with a few clicks on your computer or mobile device.
Easy
There is no need to remember all the information about your account. When you use an e-wallet to make a payment, all you need is just an ID or nickname and password that you choose when you set it up. All the payments are being done online with one click on a button. There is no need to enter any numbers as was the case when using credit cards.
How many times have you forgotten your PIN code? Probably lots of times. And how many times have you had problems with cash payments because the person at a store did not accept your card? Once again, I am sure it happened quite often.
Moreover, using an e-wallet for small payments online saves much more time than inputting your card details every time when you want to make a purchase.
Immediate payments to others
An E-wallet also enables you to send money to other people wherever they are. You don’t always need a physical card to do that. Usually, it is enough just to provide a nickname and e-wallet ID or the recipient’s email address. Also, some e-wallets enable you to share your account with others. This enables them to pay you back or send money to your account.
It is life-saving during an emergency when you need to deliver money to someone as quickly as possible and digital transfers are by far the fastest for that.
E-wallets are not perfect though and here are some of their drawbacks
Can’t withdraw from them
Yes, that is true. You cannot go to an ATM and take money out from your e-wallet. And, to be honest, it is actually the least important feature in my opinion. Why? Because I would not go to a cash machine if I have enough cash with me at the moment anyway. Although, some people might need this option of taking money out and it should be available for them as well, but still they have their credit card for that purpose.
No way to pay in-site for anything
E-wallets can’t be used for paying directly in a store. The e-wallet system works only online, and some stores might not accept it yet. It might be possible in some stores may be able to receive digital payments. However, I would not consider it as a rule and enter the store without a credit card or cash.
Conclusion
So, as you can see e-wallets have both their advantages and disadvantages. However, they certainly offer a higher level of security in online payments when compared to credit cards. It is something that everyone should be aware of today. Especially as it becomes riskier and riskier to use your credit card for small purchases at internet sites.
Source: mikegingerich.com/blog/benefits-from-using-e-wallet/
- https://www.mikegingerich.com/
- Mike Gingerich
- United States
