E-wallet Security – What You Should Know (And 3 Best E-wallets)

ewallet

E-wallets changed the game for mobile payments forever. What they offer is transparency, security and instant transactions. Today, mobile and online payments are accepted by anyone who does business and the options are limitless. But do e-wallets really offer such a huge advantage over the conventional ways of payment? We’ll discuss e-wallet security and advantages in this article.

Encryption and password protection

Encryption protocols are heavily implemented in all electronic devices today. Every smartphone, desktop working station and phone encrypts data prior to sending it to a remote location. Even some chat apps have end-to-end encryption, so why wouldn’t digital wallets follow in the same path?

A standard protocol today is the 128-bit encryption technology, but there is much more to this story. As technology advances, ciphering and safety methods are improved every day. For e-wallets it’s an essential part of the offer because it brings substantial advantage over the competition.

The final layer of protection is left to the user. Take mobile e-wallets as an example. Even if someone steals your phone, they need to go through fingerprint authentication, password protection, figure out the answer to the security question and after all that trouble maybe find out you have no money in the digital pouch.

E-wallets act as a payment proxy

Probably the most important factor in e-wallet security is the fact that digital wallets mask your credit card/bank account information. No one can access your personal data, see full account numbers or get a hold of any other sensitive info about you. Even if they somehow get to use your e-wallet, you will immediately be informed via an sms or email. This gives you plenty of time to react and freeze your assets. 

Reputable e-wallet vendors take data privacy very seriously. There is no such thing as selling user info to the third parties. Even the entity receiving the payment can’t access your personal data. The only companies they share your data with are the banks and credit/debit card providers.

Instant payments

Money transfer between bank accounts takes between 2 days and 2 weeks, depending on the bank. Credit card transfers can also take a couple of days to be processed. This means that there will be a time lag between the moment you paid and the time the transaction is visible in your balance. 

This can cause a lot of confusion and frustration. On the other hand, e-wallet payments are instant and completely transparent. The moment you make a transaction it’s visible in your balance. 

Furthermore, you can load your wallet whenever you want and with any amount of money. If you want to make a transaction, you can put the exact amount into your e-wallet and never worry about the remaining balances. This instantaneous transfer brings extra security to the process because there is no time to “operate” in the grey area.

Best E-wallets to consider

Great flexibility of e-wallets offers something to everyone. Whether you use fiat currencies or crypto as payment, you can find the best option for your needs.

WebMoney

WebMoney is a platform that offers a lot. Every user has their own “purse” for storing funds. The type of purse depends on the region you’re in – for example, R-purse is for Russian, E-purse for European and Z-purse for the US citizens. All purses are available for desktop and mobile devices for Windows, Android and iOS users.

There is also a possibility of purchasing a physical card, if you want to withdraw money directly from an ATM or purchase goods in physical stores.This e-wallet also offers cryptocurrency transactions, specifically Bitcoin. The minimum amount of a payment is 0,001 BTC. 

Android Pay

Android Pay is a phone-specific mobile paying app similar to Apple Pay. It allows users to take their money with them as long as they have their phone. This platform can store all major credit, debit and loyalty cards, or it can be connected to the PayPal account.

Android Pay offers payments in brick-and-mortar stores as well as online transactions. Most users love the contactless store payments and the option to split the bill with other users when paying in restaurants and bars. You can also access tickets and passes you bought digitally, without any need for a paper trail.

Security is on the highest level and every transaction you make is immediately synced with your Google account, meaning that every purchase is transparent and tracked in great detail. You can also save your favorite stores so you don’t need to go through the verification process more than once.

Atomic wallet

When it comes to cryptocurrency e-wallets, Atomic wallet is considered the best among the competition. It is available to users of Windows, Linux and iOS platforms, as well Android. It can store more than 300 coins and offers an intuitive and simple user interface.

It is important to note that crypto e-wallets are best used in combination with physical storage to increase security. Physical wallets should be kept in a secure location and connected to the e-wallets only when you need to load it with coins. 

Trezor is a wallet that offers just that. It falls into the category of hardware wallets and is very popular among crypto users because of its security. It supports most popular cryptocurrencies like Bitcoin, Litecoin, Ether and many more. It is used as an offline storage and shouldn’t be connected to a machine that is used for internet access.

Final word

The main idea is simple but very powerful – e-wallets act as a proxy between your bank account and the rest of the world. Of course, no system is impenetrable and “back door” access is something that is a great concern. This is why you should only trust your data and money with reliable vendors and do everything in your power to improve security. Don’t leave your phone unprotected and don’t save your card on sites that you don’t trust.