An e-wallet is a form of an electronic card that is used for online transactions using a computer or a smartphone. It serves the same purpose as a credit or debit card. To make payments, an E-wallet must be linked to the individual’s bank account. While in-app micro purchasing is the purchase of products and services from within an app on a mobile device that involves the exchange of a small amount of money. Read more to know about the e-wallet Payments evolution and how to make to safer and much more below.
Evolution of Payment Facilities
Humans have preferred to make their transactions as simple and convenient as possible as their modern lifestyle has advanced. The exchange of currency exchange was replaced by cards in the early twentieth century in the form of charge cards. Credit cards were introduced in the mid-1950s, followed by visa cards and, finally, online banking in 1994. Payment apps as we know them now first appeared in the 2000s.
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How did the Pandemic Escalate Digitalization?
Technology has always found a way amid chaos, but digitalization blossomed during the COVID-19 pandemic. The year 2020 changed the course of our lives in several ways but as you can see digital wallets have completely taken over. This payment technique has gained popularity among the public as a result of prominent brands and eCommerce businesses pushing no-contact transactions. Furthermore, because even small businesses are now accepting digital payments, it is now easier than ever to travel cashless.
Mainstreaming e-wallet Payments
There were over 779 billion digital transactions in fintech globally in 2020, with this figure expected to rise at a 13 per cent yearly rate in the years ahead. There were many reasons which contributed to the replacement of traditional payments with in-app and wallet payment methods:
- Safe transaction- The most essential advantage of in-app micro and wallet payments is that there is no risk involved. Payments are password-protected, and you will receive an invoice as soon as the transaction is completed.
- Easy large transactions- Large transactions are simple because money is directly removed from your bank, so you won’t have to worry about carrying large sums of money. You simply enter the amount, and the precise amount will be subtracted without any alteration.
- Easy money return policies-With typical buying experiences, returning goods is a lot of unnecessary effort. This is not the case with current payments; as soon as you return your merchandise, you will be alerted with your return details, and the money will be reimbursed to your bank.
- Rewards-When you shop from an app and pay with your wallet, you earn points for each transaction. In exchange, you can buy more items or keep them for later use.
In-app purchases Micro and e-wallet payments have quickly evolved from a specialized payment method for digitally savvy individuals to a mainstream payment mechanism. Advances in technology have widened the applications of mobile wallets, resulting in their rapid increase during the previous five years. And, in the future, their use will be widespread and will be used by everyone in the world.