The new normal
MOBILE payment technologies have evolved through the years. They are driving commerce at a fast pace and with the world adapting to the new normal, an unprecedented number of retailers, as well as consumers, are adopting digital payments than ever before, thus the revolution of digital wallets has begun. Gone are the days when one had to use cash or cheque as a medium for payments. No more standing in the queue at banks or ATM counters. Fijian consumers have also followed suit with this international trend as countless of them are adopting the use of digital or E-wallets. So, let’s look at what E-wallets are.
What is an E-wallet?
An E-wallet is not only a way to pay with a device, but is also includes taking the functions of your actual wallet with all of its contents and behaviours and integrating it into a digital device. This digital device could be something like your mobile phone or computer, with apps and in built functionalities to help you with your everyday transactions. It lets you make electronic payments in line with your credit/debit card or digital cash.
Types of E-wallets
1. Closed E-wallet
A company selling products and/or services can develop a closed wallet for its customers. Users of a closed wallet can use the funds stored to make transactions with only the issuer of the wallet. The money from cancellations, returns, or refunds by the company can also be stored in these E-wallets. An instance of closed E-wallet is the digital medium provided by Carpenters Fiji to make payments for its products/ services.
2. Semi-closed E-wallet
A semi-closed E-wallet allows users to make transactions at listed merchants and locations. Although the coverage area of such wallets is somewhat restricted, both online and offline buying can be done through these types of E-wallets. However, merchants need to enter into agreements or contracts with the issuers for accepting payments from the mobile wallets.
Instances of semi-closed W-wallets in Fiji are Vodafone’s M-Paisa and Digicel’s My Cash.
3. Open E-wallet
Banks or institutes partnered with other banks can issue open E-wallets. Users with open E-wallets can use them for all transactions allowed with a semi-closed wallet in addition to withdrawal of funds from banks and ATMs and transfer of funds. These open E-wallets are not that common in Fiji.
How does an E-wallet work? Essentially an E-wallet works like an electronic version of a consumer’s current wallet. It allows consumers to make electronic payments with their digital device and hides the actual financial information such as their account balance. It also authenticates consumer purchases through encryption and digital certificates to secure the payment processes from the consumer to the merchant.
Most E-wallet payments use Near Field Communication (NFC), a set of communication protocols for communication between two electronic devices over a distance of 4 cm which are inbuilt in mobile devises. A more common system of E-wallet payments in Fiji is Quick Response (QR) codes which is a contactless payment method where payment is performed by scanning a QR code from a mobile app.
What is an E-wallet used for?
• Online shopping from your device
• Paying your bills
• Storing personal information
• Person to person payments
• Tracking your expenditure
Before using e-wallets Consumers are encouraged to understand the terms and conditions for using or subscribing to E-wallets. Below are some things consumers should consider before using any E-wallet.
• Refund and replacement procedures. Certain international E-wallet service providers provide redress mechanisms such refunds when a product purchased online is not received or may be damaged. Alternatively, certain E-wallets do not hold themselves liable for any damages or loss sustained when using their services to purchase products from other vendors. Be sure to verify this so you can make an informed decision on which E-wallet service provider to use.
• Top-up fees and other services. Consumers must find out if the E-wallet service provider has fees and other charges for withdrawals or transactions. Do comparative shopping for your E-wallet.
• Load limit. Also, consumers must check the maximum value that the ewallet can store at any one time and whether that is convenient to you.
• Transaction limit. Be sure to find out the maximum amount you can transfer from the E-wallet so that you are not disappointed at a later stage while using the service. Certain E-wallet platforms have a transaction limit.
E-Wallets should be a convenient, easy to use portal for you, so you may want to consider the following features and tips before selecting and while using an E-wallet;
1. Security. Ensure that your E-Wallet has a number of security measures in place such as encryption for every transaction or zero liability protection for your purchases (common in international E-wallets such as PayPal). Safeguards should also be in place to only bill you once if you tap twice by mistake. Ensure that you set up a suitable username and a strong password and PIN.
2. Payment method. Your E-wallet should utilise features such as NFC or QR codes for easy payments that are quick and convenient. Look for E-wallets that are able to make bill payments for your regular billers and able to schedule any bills payments when they are due.
3. Online shopping. If you regularly buy online, it may be a good idea to use an EWallet that is accepted at your favourite online retailers. Be sure to do some research before opting for an E-wallet.
4. Financial institution. Many banks and other financial institutions are integral to the E wallet movements as they facilitate your payment. Your financial institution may already have an app available for you, which will make your digital payments easier as they already have your account information.
What are some things to avoid with E-wallets?
1. Forgetting about security. Always protect your information with a password or PIN just in case your Ewallet is lost or stolen. It is important that you can always unlink your personal information from your Ewallet so no one except for you has access to it.
2. Forgetting about privacy. To avoid things like identity theft, it is important to always be wary of the site you are entering your personal information into. If you are on a webpage, always look for the padlock symbol where you enter your web addresses to confirm that the web page is secure.
Fijians with any consumer issues can seek the council’s assistance by calling the toll-free number 155 or can lodge a complaint using the Consumer Council of Fiji mobile app.