With advancements in technology and the ever-changing business environment, the world is migrating from paper and plastic payment. It is now embracing the use of e-wallets. It is a form of contactless payment option that has continued to evolve since its introduction. According to industry experts, it is one of the most preferred payments, and it is expected to grow by $2.1 trillion by the end of 2023. This can be attributed to the immense benefits and advancements that have been brought about by the digital payment system to users across different parts of the globe.
Compared to the card and traditional payment options, e-wallets are highly encrypted thanks to the availability of modern software technology. Therefore, e-wallets offer a convenient environment to carry out transactions. With a smartphone, you can simply register and create the e-wallet profile that gives you access to instant payments. Generally, there are three types of e-wallets that are widely used across different industries They include:
With a closed wallet, you can facilitate payments to an issuer. No cash withdrawal can be made with a closed e-wallet. Some of the most common closed e-wallets included Uber cash payment and Walmart Pay. Money stored in e-wallets can be transacted with companies such as Bookmyshow Makemytrip and Flipkart among others that issue closed e-wallets to their clients. This is because they are online e-wallet accounts where cash can be credited with ease even in the event of a cancellation.
Semi-closed e-wallets offer financial services to merchants that a wallet issuer approves. No cash withdrawal can be made with semi-closed wallets including Apple Pay, Samsung pay, Paytym Wallet, Citrus, Freecharge wallet, Oxygen and Amazon pay among others. To get a semi-closed wallet, you will need an RBI approval and once it’s active, you can use your wallet to purchase different products and services, access an array of financial services and premiums among other benefits.
Similarly, semi-closed e-wallets are handled by non-banking agencies. This means money is deposited via a partner bank in an escrow account.
Open E-wallets allow you to withdraw and access money via banking correspondents as well as ATMs. With open e-wallets, you can make cash withdrawals. Some of the most popular open e-wallets include: Pay Zapp by HDFC bank and M-Pesa among others.
Undoubtedly, e-wallets are here to stay bearing in mind that they offer the ease and convenience of carrying out financial transactions. Its top benefits include:
- Enhanced Security
E-Wallets are highly encrypted and you have to authorize any transaction with a fingerprint scanner, password or PIN. While making payments offline or online, your account details remain a secret since this is only stored and locked by your service provider. This means in case your smartphone is stolen, your money remains safe.
- Convenience and speed
E-wallets offer a lot of conveniences because financial transactions happen in just seconds or minutes. You only need to tap your e-wallet app and there you go. You can purchase your products, make payments, or pay a friend online in an instant.
- An Array of Options
E-wallets offer an array of financial options. This ranges from the convenience of making deposits, withdrawals and payment for different products and services. So far, people and businesses that use e-wallets achieve a competitive edge against relevant parties in the market. E-wallets simply redefine your experience and offer a novelty aspect in every transaction that you make.
For instance, Free charge is advanced and you can make the most of digital cash to make payments for your online gameplay, pay for bus and train ticket, and pay your bills and much more. PayPal, on the other hand, has partnered with top players in the market including eBay, southwest and best buy for easy online purchases and payments.