Over the decade payment methods have evolved. Buying and paying are a part of daily life for everyone. Ranging from barter and paper money to credit/debit cards and mobile wallets there is no stopping. Today, there is the decentralized crypto or virtual currency that has entered the mainstream as a medium of exchange.
Retailers are creating their own mobile wallets as a payment solution – e.g. Google Pay, Amazon Pay, Samsung Pay, PayPal One Touch, etc. the digital wallets use NFC [Near Field Communication] technology. It acts as a mediator between retailers’ payment terminals and a smartphone without any intermediary.
- For retailers, mobile wallet apps have helped to enhance customers’ shopping experience. It helps them build a loyal customer base. They even have extensive data associated with customer behavior and preference that helps them with a remarketing campaign.
- For customers, digital wallet apps speed up the in-store and online checkout process, and even have to pay less against transaction fees. Digital wallet has robust security protocols to reduce breach risk ranging from fraud management and tokenization via biometric authentication.
Cryptocurrency is still in its infancy, but has been accepted by large organizations and the financial sector. Even though the cryptocurrency is decentralized it has helped to eliminate interference in the payment process.
Unlike the banking system, transactions via crypto mobile wallet don’t have to pass through interferences, which mean there is no core point of failure. With the banking system, users need to monitor their balances and accounts.
Data from the balances and accounts can be manipulated, jeopardized, or corrupted. On the other hand, crypto wallets are based on blockchain technology, so it eliminates or diminishes these issues. ZenGo X is a platform to get a crypto wallet and even learn about these digital currency differences in-depth.
What is the difference between crypto and e-wallet?
E-wallet holds fiat currencies, while crypto wallets don’t store your Bitcoins or Ethereums. Your digital currency is residing on a blockchain ledger, which can be accessed via a private and public key. It is the private key that proves your ownership of the digital currency and allows making transactions. The public key is similar to an email address, which you can share to receive the crypto coins.
For example, when you generate a Tether crypto wallet, you even generate a public key that can be shared with anyone but the private key needs to be protected. It is just like a password, which you never disclose to anyone. If someone gains access to the private key then the possibility that you may lose the stored USDT in the wallet.
ZengoX is on Facebook, where you can gain tips on how to protect your crypto wallet.
Is the crypto payment method a good idea?
Each type of payment method is unique with its pros and cons. Some offer more privacy and protection than others. For example, cryptocurrency is less volatile than fiat currencies making online and international transactions become easy.
It allows seamless transactions without 3rd party interventions or exchange value dilemmas yet a ledger is preserved at the backend. According to experts, if you see profits then crypto spending is similar to selling so don’t use it for shopping. Some advocates abide by the viewpoint that cryptocurrency is for saving, while cash is for payments.