Simplifying Big Words: What’s an E-wallet?

Under the sunny weather of Sahel, one would need a refreshing juice or a healthy snack. Yet, it would be a bummer to carry your wallet to the beach, as it could be lost or stolen. And that’s my friend, why you need to have an E-wallet. Let me tell you all about it.

A Digital Wallet (aka E-wallet) is a mobile app that facilitates financial transactions. The app stores all your payment information, so you wouldn’t need to carry your wallet around. You can securely save your cards and bank account information. So, your purchase takes just a few clicks.

The How

The concept of an E-wallet seems fancy and intriguing. Yet, how does it work? And, is it secure enough to store one’s payment data? Let’s dive right in to find the answers.

Digital wallets are designed to make financial services more accessible to the user. They work by using Bluetooth or Wi-Fi to safely transmit your payment info from your mobile to the point of sale (POS). The latter is connected to payment processors, which are connected to gateways that carry out the transaction.

As for data security, electronic wallets use data encryption and authentication to safely store personal information. Also, E-wallets use sandbox architecture, which means isolating individual applications for a period of time to determine if it is malicious. Sandboxes greatly add to the security of E-wallets.

Why are E-wallets Dope?

Well, I could have used another adjective, but I do believe that E-wallets are DOPE. It empowers you to make transactions with ease without carrying around zillion cards. The E-wallet gathers everything payment-related into one place. So, you can make purchases by using your mobile phone or smartwatch.

Fintech vs. E-wallets

Many often confuse Fintech and E-wallets as rivals or competitors. Yet, in fact, E-wallets are a part of the Fintech umbrella.