It is commonly understood that today’s world is exceptionally technological, as every step we take regarding evolution is in association with technology and everything it covers. As our society has become more and more technologically advanced, it can only be expected that the same technology will begin to bleed into the common areas of modern life. For example, technology has been integrated into everything from our kitchen appliances to our lighting – and everything in between. One thing, in particular, that is continuously evolving with our technology is currency; as each day passes and another technological advancement is made,
One thing, in particular, that is continually changing along with our technology is currency. As each day passes and another technological improvement is achieved, money continuously becomes more and more integrated with its evolution. Digital payments have become a large part of our society’s financial structure, encompassing various forms of online banking and digital currencies alike. In fact, the field has become so integral to the core of our society that digital money, in general, is highly probably to become our primary source of currency shortly.
An eWallet is, essentially, a fancy term that describes something of which most of us are already aware. eWallets are also commonly referred to as digital wallets, and the name is pretty self-explanatory. eWallets are secure, digital places where you can store one or more digital “purses.” These wallets are typically operated in a prepaid manner and can be used once the wallet has been funded by the shopper who owns it.
In most cases, eWallet shoppers must be verified by a complete Know Your Customer (KYC) process before receiving full access to their digital wallets. With that said, there are some eWallet providers that allow some users to operate while unverified; although, these users typically have a lower spending limit compared to those users who have already been verified.
The utilization of an eWallet is significantly different than that of using a card online. When using an eWallet, the shopper is typically authenticated first and then has full access to the functions of their eWallet. Functions typically include things such as currency conversions, top-ups, access to other service providers, et cetera. There may also be an option, at this point, to create an unverified account; however, this process can often be rather confusing and is not encouraged.
There are also several different types of eWallets; typically, these can be identified as closed, semi-closed, and open. Closed eWallets are issued to clients by companies and can only be used with the specific company that issues them. These are often utilized in cases of refunds or other situations where store credit is due.Semi-closed eWallets are the most common and can be used in transactions both online and offline; these eWallets are normally used in situations such as
Semi-closed eWallets are the most common and can be used in transactions both online and offline; these eWallets are normally used in situations such as buying goods or services, paying fees or premiums, or when using financial services. Companies that use these must have received an offshore eWallet license.
Finally, open eWallets are only ever used by banks or by companies who have direct partnerships with qualifying banks. Open eWallets can do everything that a semi-closed eWallet can; however, these digital wallets can also transfer funds and withdraw cash at ATMs or banks.
Considering that the technology of digital wallets and general currency is constantly growing and adapting, it may be wise for entrepreneurs to enter the field of eWallet businesses. As an aspiring business owner, it’s important to keep updated with the trends of the current times, and today’s trend is technology and money.
If you are considering starting an eWallet business today, you should look into getting an offshore eWallet license and the general legalities of running such a business in your area. Licenses are, in fact, required to both operate and fund an eWallet. However, the license can be held by the business owner, a company in partnership with the business owner, or a sponsored bank. Make sure to plan accordingly so that your business can run smoothly along with your local laws.