Fact checked! This material is written by an expert.

9 min read 02.08.2021 176

5 best E-Wallets for UK residents in 2021

We cannot dispute the relevance of technology in our everyday lives, whether it is the introduction of smartphones or the expansion of the fintech business. The fintech industry, in particular, has seen some of its brightest days in recent years, with a variety of financial services being made available to customers all over the world. In the financial sector, e-wallets have been a force to be reckoned with, allowing users to make transactions safer and faster. You've come to the correct spot if you're looking for the finest e-wallet in the UK. Continue reading for a list of the finest e-wallets in the UK.

Ibrahim Busari
Ibrahim Busari
Ibrahim is a fintech writer at AskWallet

Fact checked! This material is written by an expert.

9 min read 02.08.2021 176

Introduction

As we continue to progress in society, technology has improved and found a number of ways to make our lives easier. Whether it's the advent of smartphones  or the rise of the fintech industry, we cannot deny the importance of technology in our daily lives. The fintech industry especially has seen some of its brightest days in recent years with a number of financial services being offered to users around the world. 

One of the most popular products that the fintech industry has made popular are E-wallets. Chances are that if you enjoy shopping online or like shopping from companies based abroad you might have made use of an E-wallet. One of the most popular E-wallets that really broke into the mainstream was Paypal. Paypal completely changed the way many people made and received transactions. Now, Paypal provides business accounts, Merchant accounts, international money transfers and many more! 

In recent years we have seen all sorts of E-wallet from blockchain driven wallets to cryptocurrency wallets. Cryptocurrencies such as Bitcoin, Litecoin have made it very easy and secure to send funds online and many fintech companies are capitalizing on its popularity and success.

If you have spent any time researching or just looking up E-wallet, you would have noticed that the number of E-wallets on the market is almost infinite. However, which E-wallet should you be looking at and what do they have to offer that other electronic money services can’t. 

Despite the fact that digital wallets have been around for more than two decades, they have just recently developed, revolutionizing the way we pay for products and services.

E-wallets, or digital wallets, are mobile apps that store credit or debit card information in one place and enable users to make cashless transactions in-store and online using their phone or a wearable device.Digital wallets, which utilize biometric identification and data security, are not only handy, but also provide consumers with a better feeling of control and safety.

What is an E-Wallet?

An E-wallet or digital wallet is a software-based platform that keeps customers' payment details and passwords for a range of payment channels and sites securely. With the use of near-field communications technology and a digital wallet, customers may make transactions fast and simply. An e-wallet is not only a wallet to store, spend and send money online but also some of e-wallet provide users with prepaid debit cards that allows them to make purchases in-stores. 

E-wallets not only give users a safe place for their funds but also allows them to make Person 2 Person transfer, bank accounts transfer, credit cards transfers and more. Another reason why e-wallet have become so popular is because they are easy to use, low cost and provide fast transactions. 

Top 5 E-Wallets in UK 2021

PayPal

PayPal is the world's largest merchant payment service and one of the first online payment wallets. It pioneered a novel method of making online transactions, freeing customers from the burden of constantly sending bank information.

Its worldwide clout is growing by the day, and it has lately entered the bitcoin industry. It intends to launch purchasing choices in the United States in the next weeks, followed by a complete deployment in early 2021. PayPal wallets might be used to hold Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and other virtual currencies. They could use these currencies to make online payments, and PayPal would convert them into the appropriate fiat money.

Skrill

Skrill Limited is a subsidiary of Paysafe Holdings UK Limited that provides payment solutions for people and companies worldwide, with an emphasis on the e-commerce and gaming industries. Skrill allows you to conduct simple, safe, and fast online worldwide payments ranging from international and domestic money transfers to betting, trading, shopping, and gaming. The firm also provides bitcoin trading, prepaid cards, and a loyalty program. You may also transfer funds straight from your Skrill e-wallet to your bank account.

Revolut

Revolut was first envisioned as a multi-currency bank account that minimized various bank costs and commissions associated with foreign currency transactions. It was successful in the EEA region, raising several million euros, and now aspires to become a genuine online bank. Today, Revolut has expanded beyond the limits of the United Kingdom and currently provides its services in a number of European countries, as well as the United States, Canada, Singapore, and many more.

MuchBetter 

Since its inception in 2016, more than 500 merchants have added it to their list of deposit and withdrawal options, with the majority of them doing so in the first year. Many major iGaming businesses accept MuchBetter. At the same time, it is still not accessible as a payment method at market-leading merchants like bet365, which may disappoint some consumers.

As an Authorized Electronic Money Institution, the electronic money firm operates in the United Kingdom (EMI). It is true that the FCA license, backed up by banking sector norms and high tariffs, provides a high level of account security.

Neteller 

Neteller is used by millions of consumers to transfer and receive money instantaneously in over 200 countries, as well as to buy easily on thousands of websites. They have quick access to their money at millions of point-of-sale, ATM, and internet sites, as well as various online and offline withdrawal and payment alternatives. The Neteller e-wallet allows for peer-to-peer transactions with various fees for domestic and international payments.

How Do E-Wallets Work?

E-wallets are usually housed in mobile apps and websites where customers can take full control of their funds. However, a mobile app is the most popular way people use e-wallets in the UK. Many UK residents already have a smartphone and many of them use e-wallets from their smartphones. 

The mobile app is available on all of the major operating systems so every user has an opportunity to install them on their smartphones. Many consumers go for the mobile app version rather than the website because of the ease and mobility it affords them.So, to answer the question posed at the beginning, how do e-wallets work? 

Well, an e-wallet uses software to link your financial payment information from your bank account to the vendor that you are looking to make any transaction with. So , you can think of e-wallets as kind of an intermediary between the vendor and your bank. Public wallets (approved at most shops) offer purchases online, nfc in-store payments, and cashback, and may even allow withdrawals from select ATMs.

To use any e-wallet you would need to first download the app from the Apple Store or Google Play Store. 

What Are the Benefits of a Digital Wallet?

There are a number of benefits that come with using E-wallets. Here we'll look at some of those benefits and why you should consider getting one if you haven’t gotten one yet.

Convenience

Rather than having to carry a number of credit cards or stuffing your wallet with cash. Using an e-wallet can make all of that go away and you don’t have to carry anything except your mobile device to make purchases online and in-stores. Making online payments with E-wallets has never been easier and quicker with no delays at all. Aslo, allowing you to send money to other e-wallet users in a matter of seconds. 

A greater sense of security

Stolen or misplaced physical wallets are common occurrences. For those who have been unfortunate enough to lose their wallet due to an accident or theft, they know how time-consuming it can be to cancel and replace all of their cards as well as their identification. You also lose whatever cash you have on you. With a digital wallet, these issues are eliminated. No matter what happens, the intruder would need to crack your phone password, then any passwords or Face ID used in your digital wallet app.

Rewards and Bonuses

You might get a bit more bang for your buck when you utilize digital wallet applications. Cash back and special incentives from your credit cards can be combined with these perks to provide you the best possible free bonuses when making purchases with credit cards.

Disadvantages of E-Wallet

There are just a few retailers.

Payments from an electronic wallet are accepted by a limited number of merchants, depending on the wallet you pick. Some shops have yet to integrate a digital wallet to their mobile phones despite the fact that many consumers utilize cashless payment methods. Then there are others that do not accept payment using e-wallets and demand the consumer to use their debit/credit card information instead.

Fees

Some applications may charge you for making a purchase. Please include all cash-back offers that must be transferred to the bank after paying a charge.

Are E-Wallets Safe?

Major electronic wallet applications are generally regarded as safe, even if it's important to be aware of your privacy. Your bank information and other critical papers are likely to be more secure in a virtual wallet than they would be in a real one, if that makes sense.

Encryption of payment information is also common among trustworthy digital wallet applications. This makes the transmission of payment data from one application and payment system more secure. In the event that a shop or firm from which you purchase information suffers a data breach or hack, this can really assist in securing your information.

Final thoughts 

E-wallets have become a necessity in our technology driven world from making Person 2 Person and international money transfers easier to making you have a safer bank right in your pockets. THe fintech industry will continue to grow as regulations for e-wallets start becoming the norm and many more users will feel comfortable using e-wallets over their traditional banks. If you're looking for reasons why you should switch to e-wallets, Read our article on Mobile banks vs Traditional banks.

Ibrahim Busari
As a fintech writer at AskWallet, he uses his metaphorical pen to guide you through the world of EMIs. He is an Ural Federal University Alumni and has been working in the financial and iGaming industry since 2016.