Main reasons why digital wallets are the future of the financial sphere

Digital wallets are no longer a wonder. Thus, there is a question if they will become the future of payments. In this article, Genome‘s team talks about these wallets, what they are, their benefits, and why their popularity is growing.

What is a digital wallet, and which benefits does it bring?

A digital wallet or eWallet is an application or software that securely keeps payment data and passwords, allowing users to perform payments, transfers, and other financial operations. Digital wallets work by facilitating an exchange of digital currency between two parties. 

With it, a user can make payments via devices such as a mobile phone with NFC technology that enables Apple Pay and Google Pay purchases. Digital wallets can store not only payment cards but also travel tickets, gift cards, membership cards, and more. 

Benefits of eWallets

• No need to carry an actual payment card;
• No need to have a bank account in the physical branch, an online bank is enough;
• Better security as digital wallets are accessible online and can’t be stolen physically;
• Better organization as all the funds from all the debit and credit cards and accounts can be stored and tracked in one wallet;

Are digital wallets safe?

Yes, digital wallets are safe. First of all, eWallets allow a user to go not only cashless but also cardless, there is no need to take a physical payment card, as it can be stored on a device. It protects customers from loss and theft.

The second reason is financial technology. Modern banking, and especially online banking, must comply with lots of global regulations that ensure customers’ privacy and protection to issue accounts and wallets and generally provide financial services. 

And lastly, online banks that are eWallets providers are very technologically-driven. So, their best interest is to secure customers’ data and own information from inappropriate violations and fraudulent actions.

Why are digital wallets so popular in the financial sphere?

The main reason is convenience. Today a person with a digital wallet can leave home with only a smartphone in their pocket. The device stores all the necessary payment data, including credit cards and online bank accounts, alternative payment methods, and even plane tickets. 

It also makes eWallets more advanced regarding security: stealing an actual credit card can be pretty easy for a thief; while stealing a device like a phone or a tablet would not give any access to banking data.

The other undeniable reason is that opening a digital wallet is easy and not expensive at all. Normally online banks charge customers very little for accounts and services because they don’t simply have physical branches to sustain. While brick-and-mortar institutions still often require a monthly fee and charge percentages on many users’ actions. 

How to open a digital wallet?

We mentioned before that it is quite simple to open the eWallet. To manage your funds digitally, we recommend Genome. Genome is an online provider that issues personal and business wallets. Each client has access to create many accounts within one wallet in currencies such as EUR, GBP, and USD. Genome issues EU IBANs, working in the UK, and all the EU states, including Romania.

To open an account, you should:

• Sing up to Genome with your email or phone number;
• Fill in personal details such as name and date of birth;
• Verify the identity with personal documents;
• Use the wallet to issue a virtual or physical card.

FAQ

Are digital wallets the future of money?

Most likely. eWallets became quite popular as they made banking easy and fast, just like the world we live in. Besides that, these wallets are convenient to use and way more secure to carry on the device than having physical payment cards.

What are the benefits of digital wallets?

First of all, they are practical: all the payment data can be stored on the smartphone. Also, they are secure, as the device requires constant authentication via password, code, and biometrical data. And at last, digital wallets are less expensive than bank accounts in classical financial institutions.

What is the future of digital payments?

The latest trends show that electronic payments are about to become more integrated into the shopping activity, requiring less effort, and moving towards a seamless approach. At the same time, payments will be more and more secure due to the development of fraud techniques and might rely more and more on biometrical data. It is also most likely that we will have more daily devices supplemented with payment technologies.

Is the future of banking digital?

It is already digital. Currently, most banks, even those which are physical, propose to customers mobile banking applications and web apps to manage funds online. We expect to observe further digitalization and prevalence from customers to simple and easy services.