Bank accounts versus e WalletsWith the development of technology and the demonetization of higher currencies, digital and in-app wallets have emerged as an alternative payment option.
The industry has been experiencing continuous developments to not just get ready the industry for modern-day customers but likewise to carry all the standard services that traditionally needed a bank visit.
In other words, now it takes place at the ease from mobile devices: With the beginning of mobile banking, every task that once took place within a bank now happens between the edges of a mobile screen.
However, there are some differences between e-wallet applications and banking apps, but the most remarkable one is that e-wallet applications operate around a set of basic features, while banking applications offer more complete elements. In both cases, they aim to save the users’ time from going to a bank.
E wallets have undoubtedly changed the market
e Wallet is an online prepaid account used to store funds and allow users to make transactions via a computer or a smartphone whenever they need it. Unlike Bank Accounts, e-Wallets are a quick solution for online purchases.
e-Wallets have transformed the market habits, with more people adopting to e-Wallets due to their simplicity and pace of operation. With the increasing popularity of online purchasing, e-payment became a must for online shoppers.
There have a lot of advantages, such as reaching out to more customers from all around the world, which results in more sales. Also, transactions are more effective as they made effective within seconds. Clients can pay for items on an e-commerce website at any time via Internet connected device.
Decrease transaction cost and reduce technology costs
- You can hold and receive and exchange 25 different currencies without having to pay bank like charges.
- Fast Overseas Money Transfers, with no fees.
Most e-wallets providers recognize how essential they are for international businesses. Same, they realize their value as thet save time and money on transactions costs when to send global payments in as little time as possible.
Therefore a multi-currency business account allows you to hold, receive and exchange 25 different currencies using the real inter-bank exchange rate, this means fast transfers with zero fees, directly in your bank account!
- Fast & secure connection
- Tracking & Monitoring
Some e-wallet providers even offer Prepaid Business Cards for you and your team that can easily connect to your company’s account. Same, you can monitor without difficulty your team’s expenses, set spending limits for each team member and easily block cards in case of damage or loss.
Last but not least, everyday accounting platforms and E-wallets connect more easily to let you know receiving real-time notifications and more.
How are banks adapting to e wallets?
E-wallets have presented a notable competition to traditional banking services and, at the same, have likewise gone a step ahead to complement the services that conventional banks offer. Although most banks don’t see accounts (e-wallets) as a threat, there have been notable impacts over conventional banking:
Many banks yearn for a more significant presence in transaction banking. Global banks are attempting to include more sources of recurring fee earnings to increase their return on capital.
To succeed in transaction banking, individual banks will need to upgrade most elements of their operating models. As too many of them left payments and other core functionality embedded in legacy IT systems, their operations typically still depend on largely paper-based processes and will need retooling. In any case,
much of them are turning to partnerships with IT companies, other banks, e-commerce platforms, and so on.
Transaction banking is an appealing market. However, as it gets more congested and technology drives down marginal costs, prices are expected to fall, leaving many banks with susceptible to losses.
We hope we shed some light on the differences between E-Wallets and traditional bank accounts. Whichever you chose, we would like to extend an invitation for a no-obligation strategy session. Getting on a call with one of our advisors will allow you to get a solution in place rapidly.