What you need to know about e-wallets

man infront of computer

What are e-wallets?

An e-wallet is also referred to as a digital wallet. Many define it as an electronic card that is used for transactions made over the internet via a computer or smartphone. You can link your bank account with the e-wallet.

An e-wallet is a pre-paid account where a user can store their money for future transactions on the internet. We have come across a lot of e-wallets that are supported by online gambling sites to facilitate withdrawals and deposits.

There are two components found in an e-wallet, there are the information and software components. The information aspect of the e-wallet is a database of details offered by the user, and it entails the name of the account holder, amount to be paid, credit or debit cards, payment methods and the shipping address. The software component of the e-wallet stores information provided and is vital in providing encryption and security.

Why use e-wallets?

E-wallets are very easy to use. Right from the registration process; all you have to do is download the application and follow the step required for you to open an account. The verification documents required might be your Identification Document provided by your government and a utility bill to confirm your address.

Another reason why an e-wallet should be your preferred option when transacting money online is the fact that it’s safe and secure. All the information that you share in the e-wallet is encrypted by the system’s software. All the information you have on the e-wallet’s account is safe and protected by a password. This would be safer to use compared to having cash or credit cards with you. When you make a payment, your information will not be shared with the recipient; all that they’ll get will be a random transaction ID or your email. Your ID numbers and bank account details will not be shared with them.

The speed and convenience associated with e-wallets are out of this world, payment through an e-wallet happens instantly. All that might be required of you is a wave of your phone or entering the recipient’s email address or phone number.

After you have connected your credit/debit or bank accounts with your e-wallet, payments will be easy to make and withdraw. When making a withdrawal from most of these e-wallets, you will be required, to choose your preferred destination for the withdrawal, this can be your bank account or mobile wallet.

What to focus on when selecting an e-wallet

When it comes to choosing an e-wallet, there are a couple of things that you should look into before opening an account with them.

  • Is the e-wallet recognized globally?
  • The e-wallet should be accepted in shops you buy items. Most online casinos and e-commerce websites accept e-wallets like Skrill, Skrill, Neteller, EcoPayz and Payoneer.
  • The e-wallets need to meet all regulatory, compliance and security requirements. E-Wallets like Skrill, Neteller, Ecopayz, PayPal and Payoneer are known globally for their efficient and track record serving internet shoppers and gamers.
  • Are you protected from fraud?

The regulatory compliance by the e-wallet is important since the rules put forward by the regulatory bodies require your personal and financial information to be protected. This gives you a sense of confidence in using the payment system.

What to avoid

We have used e-wallets for long periods of time, and we have noted a couple of things that you should avoid when using one for your shopping or gaming activities.

  • Do not install applications from unknown sources since they might compromise your e-wallet app.
  • We recommend that you should not share your e-wallet information like passwords and security keys with anyone; even the e-wallet employees. With the Skrill and Neteller apps, you will realise that they have security passwords different from your account passwords that you need to enter before getting into the account overview page.
  • You should not register to an e-wallet without reading the fine print about the company and their terms & conditions.
  • Make sure that you login to the e-wallet’s website through a secure network; avoid using public networks.

Perks different e-wallets have!

One thing that you realise with the e-wallets we have mentioned earlier is the convenience they bring when it comes to handling money over the internet. All that you need is the recipient’s email for the transaction to be performed.

The security that comes with your data being encrypted is worth mentioning. No one will be able to hack or intercept your transaction successfully. Your banking information is not shared.

It is pretty easy to track your spending with an e-wallet, you can breakdown your spending and tell when and where the money was spent.

When using a digital wallet like Skrill, it is possible for you to limit your spending or limit the amount you upload into your account. This brings the aspect of disciplined spending when using an e-wallet.