Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
How e-wallets are Transforming How We Pay for Goods and Services?
March 11, 2023
The financial technology industry is constantly evolving, offering convenient and secure options. One of them is a payment system based on e-wallet payments that have become very popular and widely adopted in recent times. An e-wallet allows you to transfer money faster and use virtual cards for everyday payments without continuously entering the CVV/CVC code for each transaction.
Electronic wallets - what are these?
An electronic wallet can be confidently described as an equivalent of a traditional wallet but used in virtual space. It is a special tool where the user "stores" their means of payment - so that when paying for online shopping, the transaction can be completed quickly and securely.
The use of such solutions significantly increases the comfort of ordering via the internet, but not only. Many electronic wallets can also be used stationary - for example, paying with a smartphone or a watch with a built-in NFC module. Some can replace a payment card wherever contactless payments can be used. Some of them also allow you to make transfers between users.
To create an e-wallet, we need to have an account on a certain platform. Then when shopping, at the time of payment, you log in to the wallet app with your email address and password and make the payment. With today's new payment technologies and methods, it's easier to buy products and services, set up recurring payments, and simplify payments that allow merchants to accept new orders around the clock.
Which wallets are the most popular?
There is a very wide range of e-wallets available on the market, which means that the customer can choose the most convenient solution for himself. One of the first products in this market was PayPal, which allows you to link a payment card to your account and transfer funds. Over time, the list of available services has expanded significantly. Today, it can include, among others:
- Skrill - is an international service that, in addition to payment transactions, also allows you to transfer money between users or make transactions on the cryptocurrency market. It operates in over 200 countries worldwide and over 40 currencies;
- Neteller – is an "online wallet" that allows you to deposit, withdraw and transfer funds online. NETELLER enables same-day payments and immediate cash transfers to and from merchant partners and between NETELLER account holders;
- Interac – this local payment method is widely adopted by Canadian gamblers that are frequently switching between online casinos. Such brands are aiming to become the best Interac casino for Canadian players, as this is a huge opportunity for them to acquire local players.
- Google Pay - an electronic wallet to which you can attach payment cards (with the possibility of using NFC payments). Transferring funds to your account also works here. Apple Pay works on similar principles.
Safe use of e-wallet
What makes users willing to use the e-wallet option is - apart from the obvious convenience and comfort - security. It is overseen by third-party companies that handle online payments, using several multi-layered security measures. To register an account, the user must go through the verification process.
Only the cardholder can use the wallet. Each digital transaction must be approved by logging in and entering your PIN or fingerprint. During the transaction, no sensitive data is transferred, which makes it impossible to steal any personal information.
How to choose an electronic wallet?
When choosing an electronic wallet, we recommend paying attention to the following points:
- Functionality: the first thing you should think about is the possibilities that this wallet offers you and what your needs are. From what types of transactions can be made to the compatible devices you can operate with.
- Fees: This is one of the deciding points of any financial instrument you use. As you already know, they should simplify your accounts and not generate unnecessary expenses. Therefore, you should thoroughly investigate what suits you.
- Security: Read reviews on the internet by users and ask your friends before trusting all your money in one app. Digital hacks might be more common than you imagine, and you don't want to be a victim of one.
In a nutshell
More and more people use e-wallets to make payments at online stores or for entertainment services like streaming or gambling.
See: Bitcoin Payments on the Rise
Keeping in mind all this information about what an e-wallet is and its features, you can now make your transactions much faster and safer.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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