What You Need To Know About Standard Banking And Electronic Wallets
Contributed by GoOffShoreNow
12 November, 2018
Bank accounts versus e-Wallets
With 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 once called for a bank visit to now take place at the ease of your mobile. With the beginning of mobile banking, every task that once took place within a bank now happens between the edges of a mobile screen. Unlike an Electronic wallet application that operates around a set of basic features, a banking application is a lot more complete. There is a diversity of different elements that have to be present on a mobile banking app to save the users' time from going to a bank. Mobile banking apps have driven to a customer demographic trend. Clients who previously depended on visiting banks are now conducting transactions via mobile applications.
E-wallets have undoubtedly changed the market
e-Wallet is an online prepaid account utilized to store funds and allow users to make transactions via a computer or a smartphone whenever needed. Unlike Bank Accounts, e-Wallets are considered to be 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 are various benefits, such as reaching out to more customers from all around the world, which results in more sales. Transactions are more effective being, executed within seconds without time. Clients can pay for items on an e-commerce website at any time via an internet connected device.
Decreased transaction cost and reduced technology costs
You can hold and receive and exchange 25 currencies without having to pay bank like charges. Fast Overseas Money Transfers. With no fees. Most e-wallets providers are aware of how essential it is for international businesses to save on transactions costs and send global payments in as little time as possible. Therefore a multi-currency business account lets you hold, receive and exchange around 25 currencies using the real inter-bank exchange rate, this means fast transfers with zero fees, your bank! Some e-wallet providers even offer Prepaid Business Cards for you and your team that can be connected to your company's account. You can easily monitor your team's expenses, set spending limits for each team member and easily block cards in case they have been lost. E-wallets can be easily connected to accounting platforms in which you can receive real-time notifications and more.
How are banks adapting?
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 offered by the conventional banks. Although most banks don't see accounts (e-wallets) as a threat, there have been notable impacts of these e-wallets on 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 most likely will need to upgrade most elements of their operating models. Too many banks are left with payments and other core functionality embedded in legacy IT systems. Their operations typically still depend on largely paper-based processes and will need retooling. Some banks may turn 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 were able to 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.
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