In the era of rapid technological change, more and more forms of online payment were born. In particular, e-wallets are known to be one of the popular gadgetsby many users. E-wallets will save you a lot of time, along with maximum safety and convenience for users.
So what is an e-wallet? What are the advantages and disadvantages of this online service? What are the most popular e-wallets in Philippines?
Let’s find out together!
Table of Contents
- 1 What is E-wallet?
- 2 What are the functions of e-wallet?
- 3 Advantages of E-wallets
- 4 Disadvantages of E-wallets
- 5 Why should we use E-wallets?
- 6 Classification of E-wallets
- 7 Differences between e-wallets and digital banking
- 8 Guideline to link E-wallets with bank card
- 9 Top 10 most popular E-wallets in Philippines
- 9.1 G-Cash – all-in-one e-wallet, from buying mobile load to paying bills
- 9.2 GrabPay – for avid users of Grab service
- 9.3 Lazada Wallet – access discounts on Lazada
- 9.4 Moneygment – for self-employed workers and small-to-medium enterprises
- 9.5 PayPal – universally-accepted e-wallet for shopping, sending, and receiving money
- 9.6 Coins.ph – buy cryptocurrency, game credits, and reload your beep card
- 9.7 Dragonpay Credits – for flight bookings, gaming products, and more
- 9.8 7-11 CLIQQ Pay – cashless payments in 7-11 stores
- 9.9 Denarii Cash – send money home from UAE and Saudi Arabia with zero transaction fees
- 9.10 PayMaya – virtual and physical prepaid cards that you can link to one e-wallet
What is E-wallet?
E-wallet (also known as digital wallet or online wallet) is an online payment account that can be directly linked to a bank account to quickly and conveniently pay for online transactions. Customers can use e-wallets to pay for electricity, water, internet, installment consumer loans, air tickets and many other utilities, etc.
You just need to own a smartphone, install an e-wallet and have an internet connection, then you can easily use an e-wallet to pay for utilities. With this system, you can pay various expenses through the Internet, such as: telecommunications bills, online purchases, electricity and water bills, etc. Currently, the form of payment by e-wallet is highly appreciated, as its safety and simplicity. Users will save time and money in the process of using e-wallets.
What are the functions of e-wallet?
There are a variety of its functions.
Transfer money to another account
This is the feature of receiving and transferring money to relatives and friends via e-wallet at any time, just needing an email or phone number registered by the money receiver. This feature saves a lot of time compared to making transactions on Internet banking or banking transaction offices.
Deposit – withdraw money between e-wallet and bank account
Each e-wallet can be linked to different banks, so you can use the money in your bank account at any time by transferring to the e-wallet using the linked account. Or, if you don’t need to use the money in your wallet, you can withdraw it all to your bank account to earn interest through savings accounts.
Pay bills online
The online payment function of the e-wallet makes it easy to pay bills online, pay installment loans, electricity, water, internet, payphone and buy recharge cards without having to go to a bank branch, agenc, collection points…
Manage spending history
Using an e-wallet to spend makes it easy to check the history of your transactions, so you can easily make a reasonable spending plan or compare and check transactions when necessary.
With the above functions, we can see the great role of E-wallets for society and the economy nowadays:
- Help develop the field of online shopping with the payment function of e-wallets.
- Create convenience in payment activities.
- Reducing the circulation of cash, limiting the risks of making money and theft
Advantages of E-wallets
- Bringing convenience and safety when paying.
- Saving time
- Faster payment and quicker money transfer
- Querying your account to get the fluctuations
- Several discount codes for users to save costs, especially promo codes Momo.
- Simple payment
Disadvantages of E-wallets
Although we cannot deny all the superior features e-wallets bring, we could also notice some disadvantages of e-wallets such as:
- The user pays the transfer fee.
- If you visit an unreliable website, your account may be lost.
- Fast money transfer is not guaranteed.
- Security is also a concern. Because in case your phone is lost, your account information could have accidentally been stolen.
Why should we use E-wallets?
Despite the limitations, e-wallets are still recommended to use.
E-wallets are considered an effective measure to reduce inflation because of limiting cash circulation in the market. Besides, performing transactions on e-wallets saves you a lot of time compared to going to a bank branch to do this.
Moreover, with more and more people using e-wallets, the transactions of transferring funds between individuals, paying bills on e-wallets or withdrawing money from wallets to bank accounts will become much easier.
Classification of E-wallets
On the current e-wallet market, there are many gadgets that users can install. We can divide e-wallets into 2 main types: domestic e-wallets and international e-wallets. Each type have their own different characteristics.
For this type of e-wallet, users often see popular applications such as: Payoo, Momo, Mobivi, Ngan Luong, etc. Most of these e-wallets are issued by domestic companies and are approved by domestic companies. Many people like them.
Besides domestic e-wallets, international e-wallets are also a relatively popular product. Among them, there are different types of wallets such as Paypal, AlertPay, LiqPay or Moneybooker, WebMoney, etc.
Differences between e-wallets and digital banking
Don’t confuse e-wallets with digital banking. E-wallets only accept transactions between accounts in the same wallet system or transactions with businesses that accept payments by e-wallets, digital banks are completely different.
Digital banking works like a bank on the Internet. With digital banking, you can open accounts, transfer money, get unsecured loans, open credit cards, deposit savings, etc.
There are two ways to link e-wallets:
Link e-wallet with bank
- Using a domestic ATM card to activate the card
- Linking e-wallet with bank
Linking e-wallet with bank:
Step 1: Download the e-wallet application.
Step 2: Update personal information.
Step 3: Create a personal account and verify.
Step 4: Click on Link wallet -> Select a bank to link -> Enter the correct ATM card information, and authenticate via the OTP code sent by the bank itself at the registered phone number.
Use Napas domestic ATM card to activate the card
Step 1: Select a bank from the list that appears on the wallet
Step 2: Read the information carefully and then click on the box to accept the conditions
Step 3: Enter the correct card information and verify the OTP code that the bank has sent to the registered mobile number.
Top 10 most popular E-wallets in Philippines
G-Cash – all-in-one e-wallet, from buying mobile load to paying bills
G-Cash has all the basics of your transactions covered. Through the e-wallet, that’s open to all mobile networks, you can top-up your load, send and receive money instantly, and pay house bills to over 400+ billers. You can also use it to pay at some physical stores, as long as they’re partnered with G-Cash, by scanning their in-store QR codes.
Aside from these features, there are other functions in the e-wallet you can maximize. You can shop internationally through GCash’s American Express Virtual Pay function, or even start a small investment online for as low as P50.
Not all services of the app come free, however. Do note that cashing-in via G-Cash outlets and sending remittances have corresponding charges. Cashing in over-the-counter also has a service fee of 2% once you reach the monthly cap of P8,000.
GrabPay – for avid users of Grab service
If you’re an avid user of Grab services for your daily commutes or lunches, loading your GrabPay e-wallet will come in handy. GrabPay functions as an e-wallet you can use to pay for all your GrabCar, GrabFood, and GrabExpress fees.
Aside from making transport and meal delivery more convenient, the e-wallet can also be used for paying in physical stores, such as Starbucks and SM Store, and on shopping websites such as Zalora. There’s also an option for paying bills.
Once you’ve earned enough Grab rewards, you’ll be entitled to exchange them for ride discounts or various perks, such as 3 months of Spotify Premium for free.
Lazada Wallet – access discounts on Lazada
For those of us whose second nature is to add to cart, Lazada Wallet is a built-in e-wallet on the Lazada app that you can use to pay for your Lazada purchases. It’s easy to pay using it – you just have to select “Lazada Wallet” as your payment method when checking out.
Once you’ve earned enough rewards, you’ll get to access various deals such as vouchers for free shipping and discounts. You can also buy your mobile load, pay your bills, apply for loans, and shop using the Lazada Credit Card.
Moneygment – for self-employed workers and small-to-medium enterprises
For freelancers or owners of small and medium enterprises, making sure your Social Security System (SSS), PhilHealth, Pag-IBIG, and Bureau of Internal Revenue (BIR) contributions and payments are all done properly and on time can be quite a chore. This is where Moneygment comes in – it helps you manage your government insurance and tax payments.
You can send money, pay for your bills, utilities, insurance, and investments with Moneygment as well, but do note the convenience fees and expensive app fees that come with using the wallet’s services.
PayPal – universally-accepted e-wallet for shopping, sending, and receiving money
Titos and titas who shop from various international brands and subscribe to international streaming services will find convenience in using PayPal. The e-wallet is universally accepted, and partnered with over 10 million online stores across the world. It’s also popular with freelancers, as it can be used to sending and receiving money from anywhere.
Aside from its universality, it’s known for its security. It comes equipped with encryption, a feature that hides payment details. It’s easy to start with PayPal as well – just link your account to your credit or debit card from an affiliated bank in the Philippines.
But note that its services don’t come all free. There are service fees in some transactions, such as when receiving payment domestically and from abroad. Also, Paypal currency exchange rates are not as good as compared to other inter-currency money transfer services, so do shop around for the best deal when using Paypal to remit cash or pay for items from abroad.
Coins.ph – buy cryptocurrency, game credits, and reload your beep card
If you’ve always been curious about dabbling with bitcoin, you can begin via Coins.PH. By using this e-wallet, you can buy and sell bitcoin and convert your cryptocurrencies from bitcoin to PHP and vice versa. However, you can only make these transactions within the Philippines.
Gamers would also find it useful as you can buy game credits to use in popular games such as League of Legends and Minecraft. If you regularly ride the MRT and LRT, you can reload your beep card using the e-wallet.
Aside from offering these unique features, it comes with services similar to other e-wallets – you can cash-in and out to and from your bank, buy mobile load, send or receive remittances, and pay bills on it too.
Dragonpay Credits – for flight bookings, gaming products, and more
Airline seat sale-snagging ninjas might want to check out Dragonpay Credits. You can use it to pay for airfare, including AirAsia’s seat sales, and it often gives you GetGo points – a reward program under Cebu Pacific – when you use it for your online shopping transactions.
When shopping for your new PS4 games and accessories, you can also make your payment using Dragonpay as it’s supported by gaming shops such as Datablitz.
7-11 CLIQQ Pay – cashless payments in 7-11 stores
For folks who live near or regularly visit 7-11 stores, CLIQQ Pay will come in handy as it comes with an e-wallet that you can use to purchase items from 7-11 stores by presenting a barcode to the cashier. You’ll earn points for every purchase, which you can redeem through the deals in your Rewards Catalog.
Deals often include siopaos, Gulp drinks, Big Bite Jumbo Classic Hotdogs, and the classic 7-11 ulam packs. You can also share points with friends, or even give or receive rewards as gifts.
Denarii Cash – send money home from UAE and Saudi Arabia with zero transaction fees
OFWs based in Saudi Arabia and the UAE can ditch the long queues at remittance centers and use the Denarii Cash e-wallet instead. Through the app, you can send money home without transaction fees.
Aside from its money transfer services, Denarii Cash also provides features which allow OFWs to pay for their kids’ tuition fees at home, bills, government insurance fees in the Philippines, and credit card and insurance bills. The verification process before you can send money might take some time, though, as the app will ask to confirm your ID and address first.
PayMaya comes with the features of an all-in-one e-wallet – you can use it to purchase mobile load, send money, make bank transfers, and pay bills, among others. But unlike other e-wallets, it gives you access to more transactions as it also comes with virtual and physical prepaid cards.
The built-in virtual card powered by VISA or Mastercard is designed for shopping online, booking flights, and availing other digital services. The physical card, equipped with an EMV chip and which you can also link to the app, can be used to pay for purchase in brick-and-mortar stores that accept credit or debit cards.
Note that there are extra fees when you use some PayMaya services, however, such as for sending money through Smart Padala or other remittance centers.
With the development of online payment technology, e-wallets are now an indispensable application on each person’s smartphone. Hopefully through this article you can better understand what an e-wallet is as well as be able to choose the best type of e-wallet to use.