Benefits of using e-wallets
The best thing about e-wallets is that they are incredibly easy to use. It literally takes just a couple of minutes to set it all up. You just download the app, get approved and are ready to go. Going forward using e-wallet is as simple as managing your e-mail or checking Facebook account. Both sending and receiving funds via e-wallet are instant. Most probably, this is one of the biggest reasons why so many people choose e-wallets as the main method to pay online or transfer funds between each other. A digital wallet keeps balances, cards and transfers in one place. If you need to top up your wallet, usually you can do it via credit, debit card or bank transfer and have it done very fast, or even instantly. When you make a transaction, the record of it is automatically recorded in the transaction statement, so you can view it later on when needed.Is it safe to use e-wallets?
E-wallets are also extremely safe to use. All the account information is encrypted, making both your personal details and money really safe and secure. Every time you want to use it on your mobile device, you are asked for a pin code, password or other verification details. So at the end it is so much safer than carrying around a wallet full of cash or credit cards. Furthermore, do not forget that e-wallets are regulated by external bodies in each jurisdictions, which ensures that their users are protected at all times. If you are curious to start experiencing the benefits of e-wallet yourself, register with SharPay and give it a try!What is an e-wallet, and how does it actually work
An e-wallet is an account that holds money in electronic form and lets you spend it without a plastic card in hand. Behind the app there is a real balance held by a licensed institution; the wallet is the interface to it, not a place where money magically lives.
The flow is the same in every wallet worth using:
- Top up. Money arrives by bank transfer, from a card, or from another user of the same service.
- Hold. The balance sits in one or several currencies — this is where a multi-currency wallet saves conversions.
- Pay. Either directly from the balance, or through a card issued to it, or by contactless payment from the phone.
- Send. Internally to another user, usually instantly and free, or out to an IBAN through SEPA.
- Withdraw. Back to a bank account or a card, which is the step where hidden fees usually appear.
What separates a wallet from a bank account
Three practical differences matter. A wallet is opened remotely in minutes rather than days. It usually holds several currencies and crypto side by side, which a classic current account does not. And it does not lend: there is no overdraft and no credit line, so you can only spend what is there — which is a feature rather than a limitation for most people.
What a good wallet does share with a bank account is an IBAN of its own, so an employer or a client can pay you by ordinary transfer. Here the e-wallet carries euro and crypto on one balance, with a card issued to it — opening 10.00 EUR, maintenance 3.00 EUR a month, internal transfers free, incoming SEPA 1 EUR + 0.35 %.