One Debit has several eWallet systems that could meet different deployment needs, including
- To provide higher capacity of funds storage (higher than payroll cards) for some of the payroll and payout recipients.
- To provide an “International Bank Accounts” for users who may not be qualified to have one when applying by themselves
- To provide an “International Bank Accounts” for users to do payments (remittances) and trading internationally (local banks may have restricted or do not allow international funds transfers.)
- To serve as intermediate platform for low-value cross-border personal remittance
- To achieve “Self-Funding” capability for both the eWallet accounts and bank cards
- To be an intermediary platform for gaming and gambling applications
- To serve as an electronic platform that can integrate banking with funds transfer, bill payments, eCommerce and telecom.
An eWallet operations should be kept as simple as possible and should be offered only to sophisticated professionals for the following reasons and considerations:
- Most prepaid cardholders do not need “International Funds Transfer” capabilities.
- eWallet funds transfer offers too much do-it-yourself-operation; whereas in the U.S., you have to go to the bank and fill out funds transfer request with a banker.
- Accurate and detailed information has to be known ahead of time (for example the exact Beneficiary bank’s Coordinates), and these information has to be understood. And, there is no banker infront of you to teach you on filling out the transfer requests.
- eWallet funds transfer requests also need the entry of a Security Code (Digital Signature), which requires good safe keeping and can be tedious.
- Mistakes can easily be made because IBAN could be 16-34 characters in length.
- International SWIFT transfer of funds can take 1 day to 9 days (depending on the number of correspondent banks in the chain). The eWallet user may call the service provider everyday and several times a day blaming the bank and the provider. I February 2016, we had 2,000 eWallet users came onboard, and we received hundreds of calls and ticket complains a day.
- To stop and resend a transfer can take up to 10 business days. The sophisticated users understand the delay, but not the typical cardholders.
- To deploy the eWallet, both the customers and the support personnel have to be trained and educated extensively.
What is an eWallet
An eWallet is an online banking system that could information access (through electronic interfaces) the depository accounts of a hosting financial institution (bank, currency exchange, etc.) and can perform funds transfers between the depository institution’s internal accounts.
An eWallet also has the access of an electronic funds transfer capability (either through the hosting financial institution or through a Payment Gateway external to the institution) that enables the depository account holders to send (payout) and receive funds (pay-in), externally, through the eWallet.
A full-function eWallet can top-up the depository accounts in the following ways:
- By batch transfer of funds from a Treasury (Funding) account through a “Mass Payout” process
- By credit/debit cards
- By wire transfer (SWIFT, PayPal, Western Union, MoneyGram, etc.) funds directly into his currency account with IBAN addressing.
- By eWallet-to-eWallet-transfers from other eWallet account holders
- By the User Group moving funds from the Treasury Account to the individual account.
Most of the commercially available eWallets allows only the Mass Payout method of pay-in to the eWallet accounts.
With a full-function eWallet, an eWallet account holder can withdraw funds in the following ways:
- By wire transfer out funds
- By topping up a credit/debit card
- By loading a prepaid card through an electronic interface (API)
- By eWallet-to-eWallet-transfers funds to other eWallet account holders