Are E-wallets Really That Convenient?
Updated: Oct 13, 2020
This is an article “Are E-wallets Really That Convenient?” by Marc Primo
People all over the world are coming to love the features that digital wallets can offer them. Every year, more are relying on apps that can store their debit and credit card information conveniently on their smartphones for easier purchases whether online or at physical stores, move money around from their different accounts, make fund transfers, and even withdraw cash from ATMs. However, there could also be a downside to this awesome financial technology in how prone it can be to hackers, theft, and fraud if you fail to use proper security features while using them.
Regardless of how risky e-wallets may seem, especially to those who are not really familiar with how they work, this financial tech is certainly one convenient hack that many consumers are already learning about and using everyday. In fact, in-store payments are projected to surpass $500 billion this year.
How do E-wallets work?
The elderly may not welcome the use of mobile wallets as much as the younger generations because after all, they’ve done well without them throughout their entire lives. In one study, 48% of consumers aged 18-34 use mobile wallets, while only 22% of people aged 65 and above find them helpful.
Unless you’ve lived under a rock for a time, you probably have the basic know-how on mobile wallets and their features down pat. But for better appreciation, let’s discuss how they really work.
Mobile wallets allow users to send money to other accounts via fund transfers and payments (mostly local though a few can send internationally), with the simple use of software on their smartphones.
It’s pretty much a linear process wherein you download an app, fill-in forms, submit your KYC (know your customer) requirements, enter your account details and that of your recipients or vendors, and instantly move money around. Some of the most well-known e-wallet apps right now in the US include Adyen, Airtel Money, and AlliedWallet to name a few.
Why are they becoming popular?
With many calling it the future of payment, e-wallets are getting rid of cash transactions at a very rapid rate. Aside from offering easier accounts management and convenience, some mobile wallets also boast improved security than physical transactions and carrying cash around. Another reason why this new Fintech feature is becoming popular all over the world is because more and more businesses are accepting online payments via their websites, dedicated apps, or even within the e-wallet app.
It serves as an actual wallet that allows you to store your credit and debit cards in one app and gives you numerous alternatives to manage your money and accounts while you enjoy better encrypted security. Most e-wallets also provide users digital loyalty cards they can use and rebates for using more services.
What are the risks?
So now we come to the main question: are e-wallets really that safe?
We know that the idea of hackers siphoning money off from your accounts is a nightmare, so it’s better to just lay everything down on the table when it comes to e-wallets. Yes, there are risks to using e-wallets but not in the way you would think. Most problems can occur when attackers resort to mobile/direct-to-home recharges that allow them to monetize purchases they made from dealers using your e-wallet. The best tip we can give you is to keep a limit on how much money you store in your wallet and not put everything in there all at once.
Hackers can also devise ways to access your credit and debit details through your e-wallets via phishing ,so be careful in making online transactions and only make deals with legitimate vendors.
The bottomline is that e-wallets are here to stay and for all of us to enjoy the convenience it offers. However, you need to be vigilant on how you manage your money and not just rely on available features. You’ll never know when cybercriminals may attack and since they do it digitally, may be harder to trace and retrieve what was stolen from you.