(21) E-Wallets: Mobile Payment replaces Cash | Risks and Chances of mobile payment | SHIFT - YouTube

Tags

Top Highlights

• message there is also a growing number of other providers whether global players for worldwide payments like google pay or paypal or a wallets for certain countries and currencies like ali pay in China or Paytm in India the main principle stays the same he walnuts are for storing money the balance usually comes from a bank account or a credit card or is topped up in cash the app lets you pay by clicking a button scanning a QR code or with near-field communication I use he was mostly because they're really convenient

• this might soon be a thing of the past who needs cash when you can just as easily pay with an e wallet worldwide digital wallets and our smartphones are growing more and more popular what systems are on the market how do they differ from one another and how safe are they our topic today aren't you most ebolas come as smartphone apps but there are biometric solutions to soon your own hand might replace your wallet a scanner authorizes the payment and that's it businesses are picking up on the trend and offering more a wallet payment

• services Facebook even announced its own app recently but which one is right for me that might depend on where you live and what you plan to use it for a bouquet of flowers without any cash too many it's already an ordinary part of daily life ie wallets let users pay quickly and easily there's a wide range of apps to choose from you can get a wallets through your bank then it's basically an extension of your regular account on your smartphone other a wallets are connected to your mobile plan they conduct transactions via text

• because you can pay everywhere and anywhere with your mobile phone and it takes away the hassle of dealing with cash or dealing with physical credit cards with mobile payments you can just scan a QR code and the money comes directly from your bank accounts users should look out for fees though often sending money to friends is free of charge but many providers make a profit on other transactions PayPal charges 5% on international money transfers for instance that can become costly in the long run so here's a

• checklist for finding the e wallet that's best for your needs what countries and currencies does it work in how can i top it up what payment options do I have and what does the option I use most cost and as always it's also important to look out for your security and personal data FinTech expert Julie Maupin has some basic advice for choosing the right provider look for multiple factor authentication look for making sure that there's backup practices and make sure that they are warning you about how you should and

• shouldn't be interfacing with the technology whether or not my money is safe depends on how I keep it leaving my wallet out is probably a bad idea using one two three four as a password for my wallet also not the best but providers need to maintain security standards - technically speaking most D wallets by serious providers are well protected the data is encrypted and stored on secure servers it's recommended to use e wallets which have been checked by at least two IT security companies one risk remains humans passwords need

• to be protected and a wallet users are a popular target for phishing attacks which enable criminals access to others digital wallets this is the the power and the danger of mobile banking you are your own bank and if you have bad security practices you lose your phone or something happens then you are the one who is gonna suffer the consequences of that like online banking most e-wallets use two-factor authentication for example password and fingerprint what if a transfer of Ailsa though some providers have accommodating

• rules similar to a bank but that is not a given for an e while it usually circumvents the middlemen making a profit and if there is no longer an intermediary there who is making money off of you then then you have a danger that you're not going to get that charge back there's nobody to charge it to send it back to you so a wallet do come with some risks but doesn't money always how does mobile payment compare to other common methods we took a closer look how secure it is using an e wallet compared

• to using a credit card online the only way to answer that question is it depends it depends on the e wallet and on the online payment system there are u wallet systems that are more secure than some of the online payment systems that are in use today and vice versa I would prefer the e wallets to using the credit card in the store because you've removed the human element you don't have the cashier taking your credit card potentially you know copying it or memorizing it or whatever and you want is definitely more secure in the sense

• that you don't have to worry about carry physically keeping the cash with you all the time and having enough to pay every time I give my kids cash they seem to lose some of it for example if they do they never lose their phones so when it comes to security Ybor let's make a good impression but what about user data any electronic transaction leaves a digital footprint when it comes to e wallets that information is not only available my bank but also to service providers like Google or PayPal our digital

• wallets just another step towards transparent customers I mean cash has a certain anonymity to it that that people like and that you don't quite have in the same way with with digital currencies digital transactions create footprints which many a wallet providers also use data about payments absolutely is being used about you absolutely huge industry people make lots of money by analyzing payment flows for many users however the advantages outweigh the risks all these private cooperations know exactly w

• hat

• your spending behavior is like what you are like as a shopper your your behavioral patterns essentially and that might be uncomfortable for some people but I personally it's not a big issue I would rather my transactions be tracked but safer rather than not tracked but not safe in the end we need to choose what's most important to us fun fact in Germany with huge fans of hard cash hardly anyone uses a wallets here other European countries are less cash crazy in Scandinavia more people prefer mobile payment and in many Asian countries it

• has long become a part of daily life China expects half a billion customers to use e wallets in 2019 and is no wonder it's simpler less expensive and quicker than your classic bank if I wanted to transfer money from my regular bank on a Friday afternoon for example I'll have to wait until Monday morning for it to be processed when I use my a wallet the recipient instantly receives the money along with a message that it has arrived and the best part is I don't always need a bank account for that the World Bank estimates that globally

• about 1.7 billion people don't have access to a bank accounts for them a wallets can enable access to the financial system one example is the digital payment system M paisa it started in 2007 in Kenya and is available in other African countries in India and in parts of Eastern Europe the account is linked to a mobile phone number users can pay bills or transfer money by text message a large network of M paisa agents allows for the digital wallet to be topped up one of the interesting things about electronic

• wallets is that in places where the banking system is less developed the least developed you find the highest levels of comfort with using digital wallets simply because people will grasp on to any alternative networks banking the unbanked has come to Facebook's attention to the plan D wallets calibre is supposed to be integrated into facebook Messenger and what's up users could then do worldwide payments in Facebook'

• own currency Libre the project has raised international criticism but Facebook's entrance onto

• the strongly regulated financial market should give mobile payments another boost I think most likely in the next five years we will see big movements towards global a wallet capabilities because of players like WeChat and Facebook and others with these massive platform reach pushing the sector forward and as they sort of help break down the barriers with

• governments to get on board and allow this cross-jurisdictional use country to country use of these kinds of currencies it will become easier and easier Facebook's idea isn't necessarily new

• evil it's using crypto currencies like Bitcoin have been around for years they encrypt transactions with blockchain technology which makes them particularly safe crypto currencies only exists digitally and are not regulated by any bank the most well known ones are Bitcoin aetherium and ripple the term comes from the Greek word dos meaning secret or hidden it points toward the cryptographic encryption used for all components of the currency system this technology is much safer than usual encryptions all information