Genome Blog / articles / The best online wallets: types, specifics, and options for everyday use
Sep. 28, 2022
Online wallets are all the buzz today, providing an alternative to traditional bank accounts and cards when it comes to payments and transfers. But what are the best online wallet options out there?
Find out with Genome today! We will explain what an online wallet is and how to choose the best wallet for you.
What is an online wallet?
An online wallet (also known as a virtual wallet) is software or an application that stores a person’s payment details to make purchases, transfers, and, sometimes, other financial operations. Overall, its main purpose is to deliver services to clients in a fast, sufficient way.
But, there’s a catch – online wallets vary a lot by their purpose and functionality. For instance, you likely came across these names: e-wallet, mobile wallet, and digital wallet. Sometimes these terms are used interchangeably, but in other cases describe different services.
So, let us explain the difference between these three options.
Types of online wallets
The name can be used to generalize all the software and mobile apps related to online wallet technology.
But more commonly, the term describes a web version of an online wallet. In this case, digital wallets store your card details to make quick purchases and transfers online – via your web browser. The main benefit of such a wallet is that you don’t need to enter the card payment details during these operations. Instead, the wallet is linked to your bank account’s card.
As the name suggests, these are app-based online wallets. As in the case of a digital wallet, you also link your card to the mobile wallet to make payments and transfers. But mobile wallets also allow you to pay at stores and other public places – using the contactless payment option. If your phone or smartwatch utilizes NFC, you can make payments with it – by putting it near the NFC reader. You can read more about contactless payments here.
Also, some mobile wallets, such as Google Pay and Apple Pay, allow you to make payments both online and via NFC, so they can be called digital wallets as well.
Sometimes, an e-wallet is a direct synonym of a digital wallet. But many e-wallets differ from their digital cousins. The difference is that some e-wallets can only be used as a pre-paid option, meaning you pre-load money to the e-wallet and use it when needed.
As you can see, there are similarities as well as differences. And it’s important to note that when looking for an online wallet, remember to read about the company’s services. Because some providers may use digital/mobile and e-wallet terms interchangeably when describing their products.
Also, we recommend checking out this Genome article for even more information on different types of online wallets.
The best online wallets for you
We can’t discuss the best wallet apps and options without mentioning Genome! We are a Lithuania-based electronic money institution that provides online wallets for individuals and companies. Our wallets differ from common digital wallet apps, as we offer more than transfers and payments. Genome combines the best qualities of traditional banks and online wallets – we provide services for multiple purposes while doing it quickly and conveniently.
Inside the wallet, you can have many accounts and store money in different currencies: euros, US dollars, and British pounds, up to 5 accounts per currency. Using these, you can make SEPA, SWIFT, instant internal transfers, exchange currencies, and more! We provide virtual and physical cards for payments on the go and online.
And as for our business wallet users, we provide security tokens to protect the outgoing payments better and allow you to open merchant accounts as well. All of our services are available online with affordable pricing.
This option encompasses the very best mobile wallet apps have to offer. If you have an NFC-enabled gadget with an iOS system, definitely check it out! Apple Wallet allows you to link your cards to it to make purchases online, as well as contactless payments on the go!
As in the case with the previous option, Google Pay enables all the vital mobile wallet services – but for Android users. So, if you have a phone with NFC, this option is a must if you are tired of carrying around cash and cards for purchases.
It is an online wallet using which you can purchase things online. You link your card to the wallet and swiftly pay for anything you want. PayPal also has Android and iOS apps, using which you can pay bills, check your balance, etc. You can make transfers to any person in the world – all they need is a PayPal account and an email.
Another popular online wallet option, and for a good reason. With it, you can send and receive funds and pay online. Users also get rewards for using Skrill wallets – every transaction counts!
What is a digital wallet?
It is software or an app used to store payment data, passwords, and other information required for making payments and transfers. We mentioned different types of online digital wallets in this article.
What are the advantages and disadvantages of a digital wallet?
Generally, it is easier to get a digital wallet than an account. It is also easier to navigate your purchases, as all the cards will be stored within one app. And, because you don’t have to re-enter the payment details, it saves you time. Also, virtual wallets usually come at a lower cost than traditional banking options.
As for disadvantages, it can lack some features you may require. For instance, it can only allow transfers and payments but lacks business- and merchant-related services. So if you are looking for an online wallet that has it all – try Genome!
What is the purpose of a digital wallet?
Its primary purpose is to carry out payments and transfers faster and in an easier way. A person can use their computer or phone instead of cash or cards.
What are the most important functions of a digital wallet?
Such wallets allow you to securely transfer money to other people or make purchases without using the services of traditional banks. They also help save time while doing it.
Are digital wallets safer than credit cards?
Both these payment methods have their security precautions in check. For instance, online wallets encrypt and tokenize your payment data to ensure it won’t get stolen. And if we turn to more sophisticated options, such as Genome, we comply with major regulations, PSD2, PCI DSS, and GDPR, and use an anti-fraud system to keep our platform safe.