E-Wallets: Definition, Benefits, and Role in the Cashless Age
by Seven Peaks on Dec 26, 2023 12:00:00 PM
E-wallets or digital wallets are rapidly transforming financial solutions within the FinTech landscape. The FIS Global Payments Report 2023 revealed that Thais spent a significant 25% of all their e-payments through e-wallets in 2022, with this trend projected to accelerate further.
While this shift is undeniable, many individuals still cling to the comfort of traditional cash payments. This article aims to explore the various benefits that e-wallets offer and how they can enhance a user’s daily life.
What is an E-wallet?
E-wallets are digital wallets that take the form of convenient mobile apps. They're a popular type of FinTech, widely embraced by individuals seeking a more seamless and efficient way to manage their daily finances. With just a single app linked to your bank account, debit card, or credit card, you can effortlessly make payments at stores and various locations, eliminating the need to carry cash or multiple cards.
E-wallet vs. Digital Wallet
The terms e-wallet and digital wallet are often used interchangeably and for good reasons. They both refer to platforms that use technology to store and manage financial assets and electronic transactions. However, there are some differences between the two.
- E-wallets, a long-standing term in the FinTech landscape, continue to evolve today.
- E-wallets are secure digital applications that store your credit, debit, and loyalty cards, alongside digital currencies and electronic money.
- E-wallets offer a comprehensive solution for modern lifestyles, enabling secure and easy payments, money transfers, and loyalty program management.
- Digital wallet is a more modern and comprehensive term that encompasses digital assets and a wider range of functionality.
- Digital wallets can store other types of digital assets besides payment cards and digital money, such as identity information, tickets, and more.
- Digital wallets can manage digital assets more broadly and facilitate interactions and services such as secure document access or identity verification.
Go Cashless, Ditch the Hassle
E-wallets are crucial for Thailand's cashless future. Whether you're a consumer or an organization, discover how e-wallets benefit you below.
1. Make Effortless Payments
E-wallets offer secure and convenient access to a range of financial services, including online shopping, bill payments, money transfers, and more, all accessible via smartphones and other digital devices.
2. High Security
E-wallets offer a secure digital haven for your finances. They employ robust encryption to protect your data, store multiple payment options, and require user authentication for enhanced security.
3. Swift and Seamless Experience
Forget the hassle of carrying cash and counting out change. With just a few taps on your phone, you can pay for anything, send money to friends, and even manage your finances with ease. E-wallets offer a faster, more convenient way to handle your money, eliminating the need to count cash and change on both ends.
4. Quick Access to Financial Management
Many e-wallets come with budgeting tools and transaction history features in their apps. This allows users to easily view their expenses, spending patterns, and budget plans, which can encourage better financial management.
5. Digital Service Linkage
E-wallets streamline your digital spending by seamlessly connecting you to various platforms. Pay for online subscriptions, in-app purchases, and other digital goods and services with ease, all within an e-wallet.
6. Promotional Campaigns
Providers often offer enticing incentives like cashback, discounts, and points to encourage usage of their e-wallets. Consumers can take advantage of these deals while enjoying the convenience of e-wallets.
7. Promote Financial Inclusion
Gone are the days of visiting bank branches and dealing with tedious paperwork just to execute simple transactions. With e-wallets, anyone can sign up, store money, pay bills, and access a variety of financial tools - all from their phone. This opens doors to greater financial inclusion for everyone.
8. Reduce Operational Costs
Businesses can achieve significant cost reductions across various operational aspects. Furthermore, transaction fees are typically lower when compared to credit card processing, further enhancing profitability while also eliminating human error in cash management.
9. Enable Contactless Payments
The rise of contactless payments through e-wallets has been remarkable, especially in the wake of the COVID-19 pandemic. By minimizing physical contact during transactions, contactless payments have contributed significantly to promoting public health and safety.
E-wallets in Thailand
Thailand boasts a vibrant e-wallet market, offering consumers diverse options from both private and government entities. Exploring their unique features and advantages will help us understand their impact on the financial landscape.
Dominating the Thai e-wallet market, TrueMoney Wallet boasts over 56% market share, securing the top spot among consumers. Founded in 2015, this payment platform now serves over 50 million users across Southeast Asia, including Thailand, Malaysia, Indonesia, Vietnam, the Philippines, Myanmar, and Cambodia.
TrueMoney Wallet's success in Thailand can be attributed to its unmatched convenience and widespread acceptance. Users can seamlessly scan and pay at 7-Eleven and over 7 million merchants nationwide.
This super app further empowers customers by offering a comprehensive suite of financial products, enticing partner promotions, and the TrueMoney Mastercard, creating a one-stop solution for spending, saving, and investing.
LINE Pay, seamlessly integrated with Thailand's most popular messaging app LINE, reigns as the second most preferred e-wallet in the country. This convenient platform empowers users to make swift and secure payments both online and offline, simply by scanning or displaying their QR code at the point of sale.
Beyond payments, LINE Pay fosters financial interaction by enabling users to transfer money to friends, split expenses, and even pay for public transportation through Rabbit cards. This versatility extends to online purchases, where LINE Pay serves as a secure payment method. Additionally, by linking the Kbank LINE Point credit card, users earn cashback in the form of LINE Points, further enhancing their spending experience.
Shopee Pay is one of the most popular e-wallets in Thailand, developed by Shopee, the leading e-commerce platform in the country. It offers a variety of features that meet the needs of Thai consumers, including QR payment at merchants, access to deals and promotions, and bill payments. Users on Shopee are frequently rewarded with Shopee Coins, a virtual currency that can be redeemed like cash for purchases within the platform.
Paotang, developed by Krungthai Bank, is a platform that was previously tied to the government's "Half and Half" program during the COVID-19 pandemic. This made it the most popular digital wallet in Thailand by default.
Today, the Paotang app is more than just an e-wallet for scanning and paying for goods. It has also added a variety of features, including buying lottery tickets, buying gold, checking health care benefits, using a Play card to pay for goods and services, and more.
Stripe, an E-Commerce Solution for Digital Business
Empowering consumers to compare products and prices, as well as access a wider range of goods and services conveniently is a key feature of the digital age. As we move further into this era, e-commerce businesses are playing an increasingly important role in our lives.
Stripe, committed to fostering a seamless and positive e-commerce experience, has partnered with Seven Peaks and Bluestone. This collaboration aims to simplify payments and ensure frictionless transactions for customers.
In parallel, Bluestone's robust features are designed to enhance our customers' e-commerce capabilities, catering to the diverse needs of today's businesses. Their services specifically aim to address the core challenges of e-commerce, including:
- Improved Payment Efficiency
- E-commerce Conversion
- Product Catalog Management
- Faster Payment Processing
- Transparent Subscription Billing
- Automatic Fraud Prevention
- Seamless Payment Integration
- Increased Shipping Efficiency, Logistics and Fulfillment
Create a Solution That Truly Resonates with Users
E-wallets represent one of the most exciting opportunities in FinTech, poised for explosive growth even when compared to other FinTech segments. We empower you to turn your vision for a groundbreaking e-wallet into reality. We equip you to compete head-on with the market by providing you with cutting-edge features specifically designed for Thai and Southeast ASEAN users. Let's partner to make your e-wallet dream a reality. Contact a specialist today.