E-Wallet: What Is It? How Does It Work? How Is It Developing?

E-wallet is quite an interesting thing since it is considered a totally casual thing for some people and total science-fiction for others, especially older generations but it is not a rule. Nowadays many people, especially those from the younger generation are using this virtual money and they don’t even know how it works.

It works and that is everything they need to know. If you are among those who wonder how e-wallets work or if you want to find out more about the future of the digital paying industry in general then we will help you because that is what this article is going to be about.

How does your e-wallet work?

E-wallet is another name for online-wallet and it is online cloud storage where you can store your money, basically. Those who already know what a virtual wallet is will probably have no problem understanding how this thing works but since there are many people who don’t have a clue about this product or service we will briefly explain it to them. 

An E-wallet is just an account which contains numbers representing the amount of money you have there. You can use those numbers to pay for things, or make transfers to other accounts. 

It is not a payment card and it cannot be used offline to pay for anything. That is the most important thing about an e-wallet that you should know because especially older people who are already used to cash do not really like this ‘new’ way of paying for things.

It is true that you can’t withdraw cash from your e-wallet but this does not mean that it is not secure. In fact it is the most secure way of paying because you don’t carry around paper money or plastic cards with numbers on them.

In order to pay for something or even just send someone some money all you need to do is just enter the number from your account and it will be transferred to another one. You don’t have to do anything else because there is no need for any additional information.

Your e-wallet can be public or private and if you choose a public wallet then you can use it to accept other people’s money as well. It is a good way of earning some extra money and it does not require any skills or anything.

You just need your account to be ready for accepting payments. It is a very easy thing to do and you can get all the information about that from your wallet provider. If there is a public option in your e-wallet then you will know where to find it.

Where and when can you use your e-wallet?

E-wallet is most commonly used for paying for things online or for making transfers to other people. It is used very often online because now there are a lot of things which can only be bought with digital cash, especially if you do not live in the country where this service is accepted then you really have no choice. You will have to use an e-wallet to pay.

Can I pay with my e-wallet in the local grocery store? Well, not really. Not yet at least not in every country,  but that is not because it is illegal there or something like that. They just don’t have technology to receive payments like that in every shop and local you visit. 

It is not very convenient to pay with e-wallet in offline shops but it is possible. You can use your smart phone and pay for things by scanning the QR-code and entering the number from your wallet, if you have that service on your phone. 

For example, in Poland there is a system called Blik. You can use it to make payments online and offline as long as the card terminal has a feature to receive payments like that. All you need to do is generate Blik 6-number code in your online banking app, input it on the terminal or in the bracket online and authorize the transaction. Easy, fast and secure since the code is generated randomly every time and lasts only for about 2 minutes.

What about currencies?

Money in your e-wallet is stored in currency for your country and that is really useful if you travel a lot because you will not have to change your money from one currency to another every time. You can just use your numbers and pay for things all around the world. Check the price for particular currency first though since it might be high for your operator.

There were some issues with e-wallet because it was hard to convert one currency into another but currently there are a lot of services which allow you to do so, but it might be costly. 

What is the problem with this kind of payment?

Unfortunately, not everything is perfect. E-wallet have some problems and we still can’t say that it is really the most convenient way to pay for things. First, you need a stable internet connection or at least mobile signal to use it which might not be available in some places like when you are on a trip where there is no signal at all. 

Second problem is that you can only pay to people who have an e-wallet themselves. This might be a problem for tourists visiting your country because they most probably do not have one, but it will be solved soon enough as more and more people start using this service.

There are some other problems with e-wallet too, like the price of currency conversion and limited access to funds, but those are usually no big deal in everyday use.

But what about the future? Where is it going?

E-wallet is getting more popular and in some places it has already become a normal way of paying for things online. It is only a matter of time before it becomes just as normal as using credit cards or cash. Just look at some popular online stores where you can see that there is already a payment button for e-wallet payments.

For example, Amazon, eBay or Newegg. They are all known for a big variety of products but also for advanced technology so they cannot be wrong in this case. And this is just the beginning because more and more countries become digitally advanced and have their own systems like Blik in Poland.

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