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For money transfers via the Internet, a digital payment system is provided. Unlike standard banking transactions, such transactions are not controlled by financial institutions. To store money, special cells are used – identified Digital Wallets.

What is Digital Wallet?

A digital wallet is a program designed for storing digital money and conducting online financial transactions. This is analogous to a bank account; the difference is that paper bills are not used for payments.

Each client has a wallet with an ID. It stores finances for further disposal by the user. The mechanism is similar to the principle of operation of plastic bank cards.

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You can open a digital payment system account in any currency. In your profile, you can create separate accounts for different monetary units. Conversion between them takes place at the bank’s rate.

Digital money is a currency that can only be used on the Internet. But it can be exchanged for real money after withdrawal to a card or bank account.

Functions of Digital Wallets

Business and trade on the Internet are carried out using digital payments. Digital Wallets are not only intended for making purchases on online platforms or paying for services. They allow you to earn money and withdraw it through bank cards. Digital payment system has a function for depositing and withdrawing money. It is intended for replenishing a wallet or transferring digital amounts into real ones.

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A digital wallet is used for a number of financial transactions:

  • Payment for work of freelancers or remote employees.
  • Earning money by transferring funds from one payment system to another (for example, from Paypal, Pioneer, Google Pay, WebMoney).
  • Earning money from advertising content will be sent to the specified wallet number after viewing promotional offers.
  • Purchasing goods and paying for services via the Internet.
  • Digital money is convenient to use both for making and receiving payments. Sellers do not need to send their data to buyers and ask them for bank card information

What To Look For When Choosing a Digital Wallet?

Before registering with the digital payment system, the user must become familiar with its capabilities and advantages. When choosing a digital wallet, you should consider the following parameters.

  • Prevalence – it is recommended to choose a wallet that is supported by many online resources.
  • Functionality – the more tools for work are provided, the more opportunities the user receives. Preference should be given to wallets where you can open an account in several currencies, perform various financial transactions, and pay for services.
  • Easy registration will allow you to access your profile quickly, top it up and conduct financial transactions.
  • Scope of use – for use on foreign and domestic sites, it is worth registering wallets on different web resources.

Why Do You Need A Digital Wallet?

Digital wallet is used:

  • To withdraw and receive money;
  • Payment for purchases and services;
  • Replenishing deposits with brokers;
  • Transfers of funds for housing and communal services;
  • Payment of salaries to employees.
  • You can use digital money to pay for courses and hobbies.

How To Register A Digital Wallet?

The registration process can begin once the user has selected a suitable digital payment system.

  • Go to the official online wallet website provider and find the “Register” or “Create Wallet” item.
  • Enter personal data – last name, first name, patronymic, passport details, current phone number, email address.
  • Click on “Create”. After a few minutes, you will receive a message on your phone with a confirmation code, which you can enter in the field.
  • Registration is completed, and the user is assigned a unique wallet number. You can make transactions through it after topping up.
  • Before using payments, you should familiarize yourself with the commissions for transferring money.

How To Top Up A Digital Wallet?

You can fill up your wallet in a number of ways.

  • A prepaid card is a digital payment system that distributes it.
  • Transferring funds from a mobile phone account to a virtual wallet.
  • Through Internet banking.
  • Deposit currency at an ATM or terminal.
  • By postal or bank transfer.
  • Transfer from another wallet.
  • Payment by Digital Wallets
  • After funds are credited to the virtual wallet, they can be used to pay for goods and services. It fits:
  • For payments in an online store;
  • Mobile account replenishment;
  • Making monthly loan payments;
  • Payment of utilities, etc.

Conduct financial transactions without personal presence in the bank and without its control. You can make payments from home or anywhere else you can access the Internet.

How do you withdraw money from a digital wallet?

Money can be withdrawn wholly or partially from an account with digital currency. 

To a bank card

For funds to arrive within a few minutes, you need to link your plastic card to your digital payment system account. If the system provides a card confirmation function, a small commission will be charged for each transfer.

To a bank account

The method is economical – the commission is 1%. For such a withdrawal of funds, the user must create a payment order to indicate the account details. The money arrives after three days: it takes three days to process the application.

Stationary digital payment points and terminals: The commission is 3–5%; you need to obtain a password in advance to complete the transaction in your account.

Cash-out at the digital payment system office: The service is available only to residents of large cities with offices using the digital payment system. The official website provides a list of point addresses.

You should choose a withdrawal method based on the size of the commission and convenience.

Virtual cards

You can issue a virtual card to perform financial transactions on the Internet. Funds are withdrawn from Digital Wallets to it, then used as a regular bank card. They use it to pay in stores, for online purchases, and withdraw money from ATMs.

Virtual Cards Allow You To Cash Out Digital Currency

The following digital payment system and banks issue virtual cards:

“Yandex money”: A euro card requires a mandatory user identification procedure to expand its functionality. Issued based on the MasterCard payment system. There is a system of bonuses for purchases from partners.

Bank of Ireland Visa card: The debit card is linked to a mobile phone number and provides up to 20% cashback when purchasing from partners. It cannot be used in offline stores.

Allied Irish Banks digital card:This full-fledged payment card can be linked to a phone number and used to pay in offline stores. Supports NFC technology through the installed application.

KBC Bank Ireland: KBC Bank’s mobile app may include digital wallet functionalities for customers. It can be linked to a bank account and is suitable for payment in online stores. 

Ulster Bank: As a part of NatWest Group, Ulster Bank may provide digital banking services, including digital wallets.

You can apply for virtual cards online or by visiting a bank in person.

How to cash out?

There are several ways to cash out funds from Digital Wallets.

  • Transfer the amount to a plastic card.
  • Submit an application for withdrawal to a bank account.
  • Transfer through Western Union, American Express or other services.
  • Use the postal transfer service of Ireland Post.
  • Request an expedited transfer to a partner bank.
  • When withdrawing funds from a digital wallet, a commission is charged. Before applying, you should read the terms and conditions of the electronic pay system.

A digital wallet is a system designed to pay for services and goods on the Internet. Virtual currency can be cashed out – it is withdrawn to bank card accounts, and the amount is received in cash. The systems are WebMoney, PayPal, and Yandex. Money operates in the territory of Ireland. 

Why Do You Need A Digital Wallet?

You can do without it, but digital money has several advantages, especially when you pay online.

Easy transaction

To use an e-wallet, you do not need to open a bank account. You don’t have to leave your home — you can create a wallet remotely.

They do not charge money to open a wallet. The recipient will receive the money instantly. True, the sender (or recipient) will most likely have to pay a commission, so it’s worth comparing the tariffs of different methods of money transfers in advance.

Safety

Digital Wallets are accepted as payment methods by many online retailers and services. Before sending the money to the vendor, you can put the necessary amount into a wallet designed for online payments. This is much safer than paying with a salary or credit card with a high limit.

You will not have to indicate your card number, expiration date, or secret code. This means that even if you end up on a phishing site, scammers will not be able to gain access to your bank account.

EDS operators often offer to link a bank card to a digital wallet. In this case, secrecy will not be reduced: the card details are not used for payment. They will remain a secret for the seller.

Many banks issue (usually free) plastic cards that give access to money in your wallet. They can be used to pay on the Internet, in regular stores, restaurants and other establishments.

You should still consider getting a second card for your digital wallet, even if you already have a debit or credit card. Think of these deals as competing with the reward program at your bank. Using a digital wallet could be more advantageous in certain situations.