eWallet aka Virtual Wallet is an account on internet which replaces your physical wallet. For those who are not familiar with the term ‘eWallet’, it’s same like your physical wallet except for the fact, it is virtually anywhere the internet(web) is available. Mobikwik, Paytm, oxigen .. are some wallet services in India. I am going to stop here to tell about this wallet, which is best, etc, etc,. This article is going to focus on one question.. Are they safe?
Are e-Wallets Safe To Use?
This question can’t be answered with a single word yes/no. The word ‘Safe’ in the question will add more questions like how safe this eWallet system is? (legally and technologically), How can I trust the wallet account provider with my money and data? How’s my personal details and money are safe guarded from others? etc etc..
How it’s safe – legally
The wallet provider company is legally allowed to hold your money max of Rs. 10,000 with them at any point in a particular month. The limit can be levitated to Rs. 1 lakh for the customers who submits their kyc form to the wallet service provider.. This is RBI guidelines. They also have all the money flow in and out data with them for audit, they are answerable to every Re. they hold of.
They must be having a very secure server (including physical security) which can resist most hacking and other attacks. Their security standards must be on par with the industry standards. I used ‘must be’ in the last two sentences, because I am not sure of the technology they using. I said it, because if it isn’t the case then millions of the customers would lost the money and wallet account provider have bankrupted. Fortunately, there’s no such cases recorded in the history.
The communication between your devices (it may be your smartphone, tab, iPad, PC or anything) and server is encrypted strongly. So no worries of third party attacks.
Different wallet providers uses different authentication techniques to limit your account access only to you.. Most common methods are password, sending OTP to your phone number. No one can gain access to your wallet unless you share any of your login credentials or OTPs.
eWallets are better than Net Banking, Debit/Credit Card Transactions
In my opinion paying with eWallets are safe than other modes of money transactions. Think eWallet as a middle-man between the your bank and the merchant. By using eWallet you don’t have to give your card details to other unknown websites. No direct connection between your bank account and merchants. This reduces the risk of online frauds. eWallets are more convenient than internet banking and remembering debit/credit card numbers.
Offers, Cashbacks, loyalty rewards are the silver lines of eWallets.
saving the card details in wallet account. Which I feel it is little bit risky, though they promise to keep them secure by encrypting and by not saving the cvv’s.