It’s the year 1997, you’re standing in front of a Coca-Cola vending machine in Helsinki. Following the company’s instructions, you send a text message, and your payment is made. The soda can pop out, and you walk away with it. This was one of the first demonstrations of digital payments, which eventually led to the birth of e-wallets. But what is an e-wallet, and how does it work?
An e-wallet is short for an electronic wallet, which allows you to save your money on your device in a digitized format. Think of it as your ATM card but replace the card with your cellphone or laptop. E-wallets can be connected to your bank accounts, or you can have a separate e-wallet that contains cash balance on different apps.
The e-wallet app owner takes your physical money and stores it in a digital form. E-wallets can be used to shop for clothes, pay bills, purchase groceries, book plane tickets, pay hospital expenses, school fees, and so on. They can do nearly anything that can be done using physical cash.
E-wallets have been around for quite some time, but their utility and versatility have majorly grown in the past few years. There’s a variety of ways in which E-wallets can work, as well as the situations where you can use them.
E-wallets are becoming common with the growth of e-commerce ventures, mobile commerce applications, and online payment services. Just like customers are shifting their shopping experience to online platforms, they’re also shifting their cash balance to these digital wallets.
However, the question about their work requires a longer explanation. The way an e-wallet work depends on its unique transaction, balance, and payment procedures. Having said that, we’ll categorize e-wallets into three categories depending on how they function:
E-wallet apps are provided by payment services or banks. These are basically all places that handle actual cash deposited to them by people.
Apps that connect payment services or banks to the place of payment. These apps do not hold any digital or hard cash on their own, but they connect your bank or payment service to the place you’re supposed to pay. Apps that improve your online shopping experience. These help you discover the various ways you can shop online, discounts you can avail of, and the digital cards you can set up for e-wallets. Instead of simply assisting online payments, these are apps that improve your payment experience in various online environments.
Let’s take the payit E-Wallet as an example to see how e-wallets work.
The service requires users only to sign up with their Emirati mobile number to start with payit e-wallet, which can be installed on any of your smart devices. This can be your smartphone, tablet, etc.
You’ll set up an account using your personal information, which will include your name, address, and all other relevant details. You’ll also fill in more information regarding your fiscal status, all the credit and debit cards you own, rewards that you’ve earned, places you’re a member of, and so on.
The app is familiar with some of the biggest local and international brands in the UAE, so there’s little chance that you’ll face any lack of utility.
The payit E-Wallet has a sound and secure 24×7 service for nationwide and worldwide payments. You can pay using payit sound payments, e-commerce payments, cashless on-delivery payments, as well as payments using QR codes. The app also comes with several cashback and referral offers, so you’re in for plenty of surprises as a payit user!
An e-wallet covers all the money or monetary equivalent you have on your credit cards, debit cards, reward and loyalty cards, coupons, vouchers, etc. In terms of payment opportunities, you can make payments using your e-wallet at any store listed with mobile service providers.
E-wallets are software programs containing encrypted information of your bank accounts or payment services. The encryption of money helps to safeguard it against online data theft and allows you to make safe purchases online.
Besides payit e-wallet, there are other e-wallet apps such as Google Pay, Samsung Pay, and Apple Pay. These allow bank account holders to make online payments, store funds, and check transaction history from anywhere at any time.
E-wallets mostly rely on the features of the device they are installed in. The features that an e-wallet incorporates include the following:
Near Field Communication is a technology that connected devices that are near each other. It is used for a number of data transfer purposes between devices within each other’s range. It’s also used to connect devices to make transactions and payments between the buyers and the purchaser’s devices.
All you have to do is bring the NFC devices near a Point Of Sale (POS) in order to securely exchange identity data. However, you have to ensure that the device on which you install your e-wallet has solid NFC technology. Otherwise, the wallet will remain a pretty much useless piece of software on your phone or tablet.
Bluetooth is another feature that can make your e-wallet experience much more efficient. Bluetooth is pretty similar to NFC technology, but it can cover a wider communication range. In case your e-wallet app uses the Bluetooth feature on your phone, you can make payments without finding a POS or NFC connection or without handing over your device to someone else for payment.
There is another advantage of having a Bluetooth connection with the payit digital wallet app and other e-wallet apps. It collects information and updates on discount codes, vouchers, and gift coupon opportunities within its field. This is one of the smartest features that come with the e-wallet. You won’t miss out on any opportunities to save money!
E-wallets and QR codes are best buddies. Both are encrypted bits of information, and both can work together to ensure smooth, fraud-free, and simple money transactions. If you have an e-wallet on your device, it might have a built-in QR code scanner in it. If it doesn’t have one, you can install a separate QR code scanner app, but it has to be compatible with the e-wallet app.
QR codes can help you make payments, figure out price details, avail discounts, and so on. The biggest advantage of a QR code scanner is that the encrypted information isn’t easy to hack or manipulate. You directly handle the purchase by scanning the code and using your e-wallet to make the payment from your bank account.
These codes also help verify that the payment, the price tag, the discount, or whatever other item it’s attached to is legitimate and authentic.
Considering all the options and features that come with e-wallet apps, we can say that they’re infinitely better and more tech-savvy than most traditional finance handling methods. Here’s how payIt e-wallet and other apps make payments easier for you:
An e-wallet can be installed on any of the devices that you usually carry around with you. Whether you take your cellphone to college or your tablet to work, your e-wallet always tags along. You don’t need a physical alternative in terms of cash, a card, or a leather wallet.
Electronic wallets have a much more organized system of transferring and making payments. Not only do they simplify complex payment procedures, but they also come with smart saving toolkits.
Moreover, e-wallets provide access to multiple payment sources at the mere expense of a few taps on the screen. So, you don’t have to struggle with long receipts, you don’t have to keep organizing your credit cards, and you don’t have to micromanage your funds on your own. The e-wallet does it all for you!
E-wallet app developers constantly try to introduce new features and integrations to their apps. You can set up accounts at places where you pay using your e-wallet. You get statistical insights on how you can save up money. The app also helps you earn rewards on your expenditure. These are some of the many ways an e-wallet comes in handy.
All this advancement isn’t really possible with a traditional wallet. Sure, your wallet brand may have new designs with extra space, and your bank might keep you updated with the latest promotional offers. But an e-wallet is like your on-the-go guide to everything related to your finances. In other words, its advanced features make it user-friendly.
E-wallets are the future of microfinance and microeconomics. These simple and interactive software programs give users complete control over using their money from a single dashboard. Not only do they cut out the hassle of carrying cash and cards, but they’re also much more secure and convenient in transactions and savings!