Virtual wallets: How do they benefit your business?

Virtual wallets are very common today since it is possible to carry out online transactions. In addition to representing another payment facility, it guarantees certain security for people by avoiding carrying large sums of money in briefcases, risking the briefcase being stolen.

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On the other hand, it is also more comfortable to manage money from an application on your cell phone, although now the risk is losing or having your cell phone stolen. However, the new technologies have also allowed the security measures for passwords and access to bank codes to be stricter based on the biometric analysis of our data, which includes a digital fingerprint document scanner.

Undoubtedly, virtual wallets have improved people's financial management, but they can offer much more if we transfer their advantages to the business world. The objective of this article is to explore how virtual wallets can contribute to providing valuable solutions to your business.

How do virtual wallets work?

A virtual wallet is an application that allows you to store money and other means of payment such as credit and debit cards through a digital medium. You don't need to have a bank account to enable a virtual wallet and many people consider it to be the best financial invention since ATMs.

Virtual wallets can be used in two ways:

• To make the payment of a transaction, whether it is done with a preloaded card, capturing information, or through the QR code.
• To make or receive payments between bank accounts of different users.

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Advantages of virtual wallets for your business

There are different advantages to using virtual wallets for both personal and corporate use. Below we mention the most important ones.

1. They help reduce fraud.

The data stored in the virtual wallets is encrypted, which means that your real card account numbers are not transmitted while making a payment. These mobile wallets use random payment codes that cannot be reused and often rely on certain security features, including biometrics, to authorize a payment.

Also, your full card account number is not displayed anywhere in a mobile wallet, making it clear that prying eyes will not be able to capture your card number for future use. Plus, your transactions are covered by the same security and privacy protections as your physical cards.

2. They are time-savers.

With a mobile wallet, you can quickly pay by holding your phone over the payment terminal and verifying the purchase. Most transactions can be completed in just a few seconds. The same ease and speed apply to business billings, and payments to workers and suppliers.

3. They can cut the contents of the wallet.

In addition to credit and debit cards, some virtual wallets can also store loyalty and gift cards, allowing you to have them on hand at all times without bulking up your physical wallet. In this way, you can also avoid the use of briefcases with money from another era, which was a warning sign for thieves.

4. They allow online shopping on the go.

Forget typing in card numbers when shopping online from your phone—you can pay for some purchases with your mobile wallet. Using a mobile wallet instead of a registered card when shopping online means you can reduce the number of places your card numbers are stored, without sacrificing speedy checkout.

5. They offer rewards.

If your card offers cashback or other rewards, you'll still receive them when you use that card in a virtual wallet. When you always have your virtual card on hand to shop, it can be even easier to rack up rewards.

6. They reduce the risk of loss and theft.

Virtual wallets began to be used more frequently during the pandemic to avoid contact in commercial exchanges. However, many users noted that the method was more convenient and safer against loss and theft when carrying cash.

If you have an e-commerce store, having a virtual wallet will allow you to manage your products through online sales more efficiently, facilitating payment methods for consumers and your business. The payment to your employees is also agile since you do not have to handle or count large sums of money to distribute. You simply select the amount to deposit into an account and they will receive their payment quickly.

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In a nutshell, virtual wallets are almost essential tools for managing personal and business finances. They help to carry out transactions of all kinds quickly and easily and offer important security against possible theft. They accept a minimum of dedication to this activity, streamlining procedures and online purchases of all kinds.

Today most people use them with almost the same frequency as ATMs, but they can even run money for a fixed term through this application without having to go to the bank. Real progress in terms of financial management.