Digital Wallet Guide
Use a Digital Wallet to Drive More Business
Make and share highly secure payments, receive money, and strengthen bonds with customers and clients with digital cash.
All the Payment Types You Need
A digital wallet can carry all your payment types. Add your credit card information, online payment details, and bank account numbers. When you’re ready to pay, simply choose the method that suits you best.
You’ll always be able to pay the way you want when you want—for whatever you want.
Fast, Hassle-Free Checkout
Give your business the easiest way to complete transactions. Let customers move from shopping through checkout with just a few clicks.
With payment details already entered into a digital wallet, buyers only have to authorize payments and enjoy their purchases. Digital wallets let sellers make more sales and take faster payments.
Safe, Private, and Secure
Digital wallets use the latest encryption and security technology to ensure that all financial information is stored safely and securely, and can only be accessed by the user.
No data is uploaded to third party servers and all information stays with the owner.
Buyers get all of the convenience of a modern payment system—as well as the privacy and security that the latest encryption technology can provide.
Instant Peer-to-Peer Payment System
A digital wallet lets anyone pass funds directly from one person to another. Simply choose the recipient, enter the amount, and authorize the transaction. Within seconds, the funds can be debited from your account and reach the other person’s. It’s perfect for instant payments.
Digital Wallets are for Businesses, Friends, and Everyone Else
Use a digital wallet to take and make payments in stores, at stalls, and anywhere you buy or sell. Return loans, split restaurant bills, pay your share of ticket purchases, and give cash gifts. Digital wallets are for businesses, for friends, and for relatives. They’re for everyone.
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THE ULTIMATE GUIDE TO
Businesses looking to make payments to each other now have an abundance of excellent choices, each with their own advantages and disadvantages. From wire transfers and automated clearing houses to dedicated invoicing and payment platforms like Due.com, the frequent and often large payments that businesses need to make have become a powerhouse of opportunity for finance firms. Those important and considerable movements of money have encouraged companies to create channels to ease the process of making payments, keep the options secure and enable businesses to monitor the tracking of invoices and approvals. Without the help of finance firms, businesses would soon grind to a halt.
For individuals who owe money to other individuals however, the options set up and afforded to businesses are too big and too clumsy. No one is going to send a friend a wire transfer to reimburse them for their share of last night’s dinner tab. When siblings buy a pair of concert tickets, or purchase their mother flowers for Mother’s Day, they’re not going to set up an ACH account to split the costs. When a set of parents club together to buy the class teacher a present for Christmas, the head of the PTA isn’t going to open a joint bank account to which everyone has access.
The main methods of making those small payments between individuals have long been restricted to two options: check or cash…and cash was always easiest. If your friend wrote a check and you deposited it in your bank account and it “bounced,” well, you were out the money. Any other method for splitting bills meant instructing a bank or some other regulated operator, like Western Union, to send the money. The middleman would then have to ensure that the buyer had the funds they want to send, insure the payment, oversee the security of the transfer and notify the recipient that the funds are available. Needless to say, this process is expensive and can be quite slow. For people who are able to meet their debtors in person, cash has always been a better choice.
But in an economy in which payments are becoming both increasingly digital and international, cash isn’t always an option, and neither is sending a check. Individuals working in foreign countries want cheap, reliable and safe ways to send money back to relatives at home. People living in large countries from the U.S. to Indonesia, and in particular Africa, want to be able to receive payments from buyers and relatives on the other side of the nation, or world and even friends want to be able to repay small debts without having to go to the ATM and pull out notes late at night, (with the accompanying ATM fees). Now that money represents numbers in an account rather than paper in a wallet, there’s a need for services that allow anyone to transfer money, in a simple manner, from one person to another, ideally with no more than a swipe on their mobile phones. If it’s possible to pay for a coffee by waving a smartphone over a reader, there must be a way for two people with similar devices to send funds from one to the other quickly, easily and cheaply.
Services that allow these kinds of peer-to-peer payments have developed and evolved into substantial platforms which are providing individuals with the ease of transferring cash. According to Business Insider, the global market for peer-to-peer transfers and remittances is now worth well over $1 trillion. By 2018, the U.S. market alone for P2P payments could be worth as much as $86 billion.
In this guide, we’re going to explore how these payments are being made. We’ll take a close look at the leading methods of making P2P payments, we’ll assess the risks involved in using the available options, and we’ll discuss ways of keeping transfers safe when you’re entrusting a platform with your money.
We’ll start by assessing the different platforms with distinct preferences of enabling P2P payments. Obviously, services that took care of money and payments before used to be restricted to banks and registered money transfer firms. Now, these banking institutions face stiff competition from a range of companies both large and small. We’ll take a close look at the main companies offering P2P payments. We’ll talk about how traditional firms like Western Union now operate, how digital companies like PayPal came in like a wave, bringing a new kind of competition aimed initially at small business owners – but whose infrastructure can just as easily be used by individuals with debts to settle among friends and family. We’ll explore how social media firms such as Facebook and Snapchat are trying to turn their text messaging services into money transfer services, and why they’re struggling to take off. And, we’ll look at how cryptocurrencies like Bitcoin are enabling peer-to-peer transfers and raising the kinds of security we have been looking for in the P2P payment user market.
The ideal of being able to send money from one mobile phone to another has started to come true, and we’ll also be examining the best apps for making quick payments, even while both parties are still sitting in the club and dividing up the bill.
In the next chapter, we’ll look at the risks these new methods can raise. There is no completely safe way to send money from one person to another. Hand over cash, and you can be mugged at the ATM… or your friend can be robbed on their way home. Checks can be forged, changed and defrauded. And money sent through companies like Western Union can be lost or stolen en route or picked up by people for whom the money wasn’t intended.
The new methods of sending money between individuals all throw up their own security risks, from account hacks to stolen smartphones that leave access to payments when apps are left open, instead of logging off. We’ll explore these dangers and assess the degree to which they pose a threat to people who wish to send money to each other, and how you can guard against loss.
We’ll then look at ways to reduce risks. Some of these methods to reduce risk have been talked about for years in the security world, and are straight forward, such as keeping passwords safe, not opening unsolicited attachments and shutting down phones as soon as they’re stolen. But as the methods of payment have become more complex, so the methods used by thieves have also become smarter and more dangerous. We’ll look at what people should be doing to keep their peer-to-peer payment programs safe, and what they should do when they believe they might have been hacked.
Chapters - Digital Wallet
Digital Wallet FAQs
A digital wallet is an app or a computer program that contains the financial information you supply when you make a payment. It might contain your credit card details, for example, or your bank account details. Or you might connect your digital wallet to an online payment system or bank. When you use a digital wallet, you authorize the seller to receive funds from your chosen account.
A digital wallet lets you make payments without using a physical credit card or by writing a check. It’s convenient, fast, and easy.
Digital wallets only store your financial information on your device. In order to complete a transaction, your wallet gives the merchant a special token that they can only use once. Nor do the providers themselves have access to your details so hackers can’t steal from their servers.
Before you can make the transaction you will have to identify yourself. You might need to enter a passcode or PIN, take a fingerprint test, or allow your device to recognize your face.
Those requirements can make paying with a digital wallet safer than paying by check or credit card, both of which can easily be stolen. It’s extremely difficult to steal or break into a digital wallet.
You can use a digital wallet to both make and receive payments. Instead of giving your credit card to the cashier, for example, you can simply pass your phone over a digital sales point, enter your identifying details—a password or a thumbprint, for example—and make your payment. You don’t need to hand over a credit card or enter a PIN on someone else’s device. It’s the safest way to pay.
For merchants, it’s an easy, and often a cheap way to collect payments.
And friends and family members can use a digital wallet to transfer funds from person to person.
Digital wallets aren’t just for businesses. They’re also for individuals. You can use a digital wallet to split a bill or give a gift or return a loan. Companies use digital wallets to hand out holiday bonuses, and students use them to pay their rent.
As long as both parties are willing to use a digital wallet, you’ll always be able to complete the transaction, and make or take a payment.
You can use your digital wallet in an increasing number of places. In some parts of the world, it’s actually easier now to pay with a digital wallet than with cash or credit card. Many merchants and increasing numbers of retail stores will now accept digital wallet payments. Look for a sign that shows a willingness to accept digital wallets, or ask the merchant if they accept your wallet.
And don’t forget, you can also use a digital wallet to make a peer-to-peer payment. If the other party has a digital wallet, you can send money directly from one phone or electronic device to another.
Using a digital wallet is fast and easy. Once you’ve opened the app, you might only need to scan a QR code. The code will tell the wallet how much to pay and where to send the funds. You’ll then need to enter your identification details and confirm the payment.
You can also enter the amount yourself then scan your phone over digital cash point or simply send the funds to someone in your contact list. You’ll always need to confirm your ID before making your payment so even if you lose your phone, your funds won’t be at risk.