After more than 8 months with the Coronavirus
The digital revolution offers us an interesting way to get rid of our traditional form of payment with bills, coins, or plastic cards for a payment system using an electronic device commonly known as an E-Wallet or mobile money.
What is an E-Wallet?
A digital wallet is an online service or software program that allows us to pay online or in a store. It is normally used on an electronic device like a phone or a computer.
How many types are there?
From the value storage perspective, there are three kinds:
- Contactless Mobile Wallet: it is a copy of an actual wallet. It stores credit cards in a digital format for use on a smartphone. For example, Apple Pay.
- Digital E-Commerce Wallet: It saves card information for the use of e-commerce.
- Stored Value Wallet: A digital account accessed through a mobile app that stores digital money. Example: Alipay.
From a safety perspective, there are two types:
- Hot E-Wallet: Connected to the internet.
- Cold E-Wallet: Disconnected from the internet.
How is the E-Wallet used?
- It is necessary to download the app.
- Create an account.
- For this, you would need to provide a shipping address, billing address, payment methods (including credit card numbers, expiry dates, and security number.
- It is highly recommended to verify the wallet you are downloading for safety reasons.
- You would be required to validate your account.
- There are two methods of payment.
- They depend on the software that we are using. Some wallets would require your password to confirm the transaction while others obligate you to input a code for each payment.
Reasons to use the E-Wallet?
- It simplifies buying experience and saves time since it has high transaction speed.
- It reduces costs since we skip intermediaries.
- It can help to send or receive money, including from friends or family located in another country.
- Less use of paper money.
- It helps us to do micro-payments and avoid rounding.
Is E-Wallet safe?
E-Wallet providers use modern encryption technology to make this method of payment secure.
Password protection in modern smartphones use different security measures. These include alphanumeric passwords and biometric protocols like fingerprint access and voice recognition. E-Wallets acting as a proxy and give only access the funds that consumers put available for its use.
What are the most commonly used digital wallets by millions of users?
The Chinese E-Wallet WeChat Pay and Alipay are the ones that account for the majority of users: 600 and 400 million clients respectively.
American companies, Pay Pal with 210 and Apple Pay with 87 million users are the ones that have more users in North America. Other world wide important E-Wallets are Amazon Pay, Chase Pay, and Android Pay.
Which are the most commonly used E-Wallets in Colombia?
- Daviplata. The app associated with Davivienda Bank is the leader virtual wallet in Colombia accounting for 5,9 million users.
- Nequi: Belongs to BankColombia and it has 1,3 million users
- BBVA Wallet: Service provided by Banco Bilbao Vizcaya Argentaria possesses 700 000 users
- Davipay: Also part of the service provided by Davivienda Bank that has 185 000 uses
- Powwi: Financial entity created especially to provide digital wallet services is the most important one that is not associated with an established bank has 10 000 users
- Tpaga: This is one of the apps that has one of the most rapid rates among the companies that do not belong to any banking institution.
- Rappipay: It has expanded in six cities of Colombia, five cities of Mexico, and also Sao Paulo, Brazil. it is expected to play a more important role in the digital wallet providers.