E-wallets or digital wallets have altered the way in which we use money in real and digital life stated Bahaa Abdul Hussein. They have become an easy and simplified alternative to using credit cards, debit cards, gift cards and making physical bank transfers. By setting up an e-wallet, you essentially link your credit card or bank account so you don’t have to enter financially sensitive information every time. These days, digital wallets only need a recipient’s phone number or a Virtual Payment Address (VPA) to transfer money from your wallet to someone else’s, or even between various e-wallets.
Popular digital wallets include Apple Pay, Amazon Pay, Google Pay, Samsung Pay, PayPal and Venmo to name a few. E-wallets have an edge over traditional payment methods as they send and receive money with the tap of a button. However, their rise in popularity is being met with rise in cyber crimes on the flip side. Cases of identity theft, banking scams, hacking of the wallet or phone have all become common. Let’s take a look at the various security features employed by digital wallets and what we can do ensure their safety from our end.
Security features of e-wallets
Tokenisation
A key feature of digital wallets is that all transactions are tokenised. Tokenisation is a secure process by which the finance-related data of users is kept confidential. Top e-wallet service providers are investing in user protection software to promote the same.
Multi-factor authentication
Digital wallets all employ MFA or 2FA where the multi-factor or two-step verification system acts as an additional layer of security. To sign in to wallets or even approve transactions sometimes, users are required to enter a code sent to their mobile numbers.
Passwords
To guard against digital data breaches, users can set a password to prevent unauthorised usage of their digital wallets. E-wallets work in the favor or consumers unlike when your credit card is lost and anyone can make use of it, for example. You can also use biometrics such as scanning your finger print or face to sign into your wallets.
Encrypted information
All digital wallets make use of state-of-the-art encryption software to hide your financial info and make it virtually inaccessible to hackers. Encryption tech is always evolving to address potential bugs in the payment technologies.
Precautions
As an e-wallet user, there are always things you can do to ensure your safe payment experience online. Firstly, download good and authentic security apps on your phone to protect your data. Never share your bank or card details with anyone or respond to emails requesting such information. Set a strong password and update it regularly. When you’re in public, avoid using open WiFi to make the payments. It will also do good to always be on the lookout for new cybercrime patterns targeting digital wallets. With a little bit of caution, you can freely transfer money from your wallet in a hassle-free manner.
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