E-wallets are electronic devices, a web service, or a software application that enables one party to exchange digital currencies for goods and services of the other party, usually bartering the virtual currencies for actual goods and services in real time. The currency of the system is typically stored in a “virtual account”, while the money itself is usually stored in a physical location, either offline or online. Many e-wallets provide access to the virtual world only via a secured gateway or an account linked to an existing banking system.
Most e-wallets offer two types of virtual accounts: standard and advanced. Both have their own advantages and disadvantages, which should be carefully considered when choosing an e-wallet. First and foremost, one must decide what type of account to choose. There are five basic types of account: open, closed, private, and custom. These accounts can be either online or offline.
Open accounts are the most commonly used and preferred form of e-wallet. They are generally offered by most banks and money processors. When opening an account, it is important to ask about all the terms and conditions of an individual provider. Some banks may require you to open a new account with them (or a different bank) before you can use your account with any other service providers. Moreover, since they are more difficult to open, they generally cost more.
Closed accounts allow users to transact only with other individuals who are members of the company or organization that owns the account. However, the cost of this account is lower than the others. It can be opened and used immediately, but requires authorization. The costs are lower than those of open accounts, since there is no credit verification required for opening this account.
Private accounts, on the other hand, allow users to transact with others only if their accounts are linked to a specific bank. Private accounts may be created at an additional cost of several hundred dollars. Most of the time, they are linked to a particular ATM card or debit card, which is usually used in order to complete transactions through the bank’s ATM machine.
Custom accounts allow users to establish a virtual “account” with a bank or financial institution, which provides access to their physical assets without having to open a traditional accounts. Custom accounts may also be linked to a particular ATM card, but there is no fee associated with opening this account. These types of accounts allow users to create and store multiple virtual funds without incurring the fees from banks.
Although e-wallets are more expensive than traditional ones, it has a number of benefits. First, they provide users a way to avoid the expense of having a bank account and with a little bit of effort, they can exchange money between themselves. With their online interfaces, users can transact instantly and avoid the hassle of physically going to a local ATM.
Physical money transfer is also possible between users of the virtual account because the money can be transferred right away without waiting until funds become available in the virtual account. Furthermore, the internet can be used for other transactions as well. In addition, users can transfer money to their online account without leaving their homes or offices, since they can use an online transaction in the traditional world as well. There is no need for a physical device such as a phone line or computer, which means that users will not have to pay the cost of paying for a local ATM or other hardware in order to send or receive money. This type of transactions is particularly useful for users who have no reliable local bank or other offline financial institutions near them.