3 Difference Between An Ewallet App and A FinTech App?

With the help of better development teams and a set of robust software tools, banks are now preparing to introduce their own digital wallets. But will they move fast enough to save the mass migration of their customers to digital wallets?

3 Difference Between An Ewallet App and A FinTech App?
Ewallet App VS FinTech App

For many looking to get into the crypto industry, it can be tough to figure out the difference between a mobile wallet and a mobile bank. However, the thing is these items could not be more different, and it is about time that we clear those differences up. In this article, we are going to be looking at the three main differences between an Ewallet App and a mobile bank.

1. A Ewallet Is Independent Of The Bank Tender And Mobile Operator

One of the biggest differences between a mobile bank and a mobile wallet is the fact that a mobile wallet is an independent application without the constraints of your bank tender or mobile operator. This means that mobile wallets do not have the traditional limitations of a mobile bank, and this is not a bad thing. Consider this, with a mobile wallet you will be able to pay for a chocolate bar at the convenience store, pay for a bar tab with a tap of your device or even pay for a new pair of shoes.

A mobile bank allows you to pay your bills, pay off your credit card or set up automated payments for the services you use every day. Mobile wallets also allow you to set up a wallet no matter who your operator is, which can free you up from only choosing certain mobile companies as they have a partnership with your bank. Mobile banks and mobile wallets still have a place in the FinTech world, but mobile wallets provide an independent option with the flexibility to pay when you want, where you want.

2. Ewallets Are Able To Be Used Practically Anywhere

When it comes to a flexible and safe paying system, there is nothing that compares to mobile wallets. These handy wallets allow you to easily pay for a drink or gas, wherever cash or credit is accepted. With the influx of tap cards in the North American market, the financial world has truly embraced the ability to use this same technology within phones.

This has allowed those who often forget to bring cash an easy and secure method to pay for their share of a night out.

While on the other side, a mobile bank will simply be able to track your spending habits and possibly put some money on your credit card. Simply put, a mobile bank won’t be much help to you in the world without either cash or a payment card, while a mobile wallet will allow you to keep your cards at home and enjoy a wallet free day!

3. Ewallets Replace Physical Wallets, Mobile Banks Simply Gives You Some Control

What is the goal of a mobile wallet or a mobile bank? Mobile wallets are designed to replace a physical wallet, and they do quite a good job of doing it. When heading out for a night out, you do not have to worry about your money clip, instead, you are able to store and use your payment cards with ease on your smartphone.

Plus, you are often able to store reward and points cards within your mobile wallet to help you get the most bang for your buck at the till.

On the other side, a mobile bank offers control and management of your personal finances but it’s not designed to replace your wallet nor your actual bank.

The Concept Behind Ewallet Apps

Although not directly related to banking apps, digital wallet apps like Apple Pay, Samsung Pay, and Google Pay are being downloaded and used to a much greater extent than their mobile banking counterparts.

This growth is visible from the growing user base of the wallet apps and how they use them. And the growth of digital wallets is a global trend. All mobile users making a transaction using their devices have the same story to share. In the United States alone, 57 percent of users (which amounts to 60 million people) have used a mobile wallet at least once.

You might be wondering what the reason behind this widespread growth is. The reason is just this — the ability to have one platform that makes transactions a lot faster since it doesn’t require the lengthy process of adding a beneficiary every time you have to make payment to somebody. Because of the quick transaction facility that digital wallets allow both from individual to individual and between individuals and businesses, the technology has been able to become the most used element of the FinTech Industry.

It is time to delve a little further into the technologies that drive this universally accepted concept.

Offerings of A FinTech App

When you compare the app feature list of a digital wallet app to the mobile banking app, you will find that mobile banking apps are a lot more comprehensive. Here is a list of the features that are commonly present in a FinTech app:

  • Check account balance.
  • Transfer money between accounts.
  • GPS navigation to find ATMs nearby.
  • Money transfers from person to person or between individuals and organisations.
  • Payment scheduling.
  • Notifications related to account usage.
  • Personal finance management — opening and closing of deposit accounts and trading.

While these seven features are the ones that are commonly present in a mobile banking app, the app category is now expanding to include technicalities like AI and machine learning to understand the user’s spending behaviour and suggest the right investment tool or an insurance plan accordingly.

Conclusion

Even though the number of banks that have expanded into the digital wallet domain are still very few, the industry is now very slowly moving in the direction of becoming a more modern platform for users. With the help of better development teams and a set of robust software tools, banks are now preparing to introduce their own digital wallets. But will they move fast enough to save the mass migration of their customers to digital wallets?