Instant coffee, instant noodles, and instant payment transactions. Will you agree about how is great it is that things can happen instantly nowadays? Sending and receiving funds is no exception. We no longer have to wait in line for a long time to settle our bills or go to a money transfer agent to send remittances to those who are dear but far away. We can make a payment transaction instantly by using an e-wallet.
In the past few years, e-wallets have become more popular. E-wallets are also called digital wallets, virtual wallets, and mobile wallets. These are peer-to-peer apps that you can use to make digital transactions and store digital money inside it. It is an alternative to carrying around a physical wallet that contains cash, debit cards, and credit cards as it functions in the same manner as it can make a payment transaction with a compatible payment terminal.
Most of us are familiar with online banking. We can see our balance that reflects the credited and debited amounts of the transactions instantly. Though we cannot hold the money, we know and trust that it is there, but in digital form. Keep in mind that though there are similarities, e-banking applications are not the same as e-wallets.
When we have online banking or an e-banking app, it works in the same manner as an e-wallet, however, it draws the funds from our existing linked bank account. We get updates about our balance when we use our e-banking app and can do other financial transactions with networked banks and e-wallets such as sending funds. An e-wallet can do the same thing if it is linked to your bank account, it can get funds from there when you initiate the transaction. Depending on the network of the e-wallet, funds may also be sent to various banks and other payment instruments such as debit cards.
No maintaining balance
One of the advantages of having an e-wallet account is that for most of them, there is no required minimum amount to be stored as a maintaining balance. Most bank accounts require that you keep a certain amount in it, and when your balance goes below that, you will be charged with a fee. There are new prepaid debit cards that are provided by banks. These prepaid bank cards usually do not require a maintaining balance.
Instant payment transaction
When you have an e-wallet with a sufficient amount of stored funds, you no longer have to bring cash or make a cash payment transaction. Several retail stores accept e-wallet payments. There usually is a sign in the store with the logo of the e-wallet. That is what you have to look for to know if your e-wallet is compatible with theirs so you can proceed to make a payment transaction. When you want to make an instant payment transaction to an individual, no matter how far away they are, to a retail store or make an online payment, it is best to make sure that you have the right e-wallet that can be used for both local and international payment transactions.