With European-style digital wallets, travelers have the benefit of instant access to multiple currencies. Money for purchases is usually drawn from a bank account. ATMs can be accessed and Cryptocurrencies like BitCoin can be converted to government-issued currency using a digital wallet.
There are individuals and companies that use digital wallets exclusively. Anyone contemplating following that example needs to know a few things.
Be certain that in your community you can digitally purchase the goods and services you need. Many local businesses may not take mobile payments. Conflicts arising from the use of a digital wallet like chargebacks must be handled by the wallet’s provider. To protect consumers digital wallet providers are legally required to maintain safeguarded bank accounts.
The US and the European Union both protect bank accounts. As of this writing, there are no such protections in place for digital wallets. This is of particular concern to people and businesses that carry a high balance in their digital account.
Issues arising from the use of a digital wallet like fraudulent charges must be handled by the wallet’s provider. To protect consumers digital wallet providers are legally required to maintain safeguarded bank accounts.
Banks offer other advantages over going strictly digital. By law currency kept in digital wallets cannot draw interest. The providers cannot provide overdraft protection or loans. To offset these rules providers may reduce the fees on large balances.
— PSI-Pay (@PSIPayLtd) March 2, 2016
In related news PSI-Pay and Kerv have partnered. PSI-Pay brings their Master Card License to the partnership. Globally Kerv customers can now use the company’s contactless payment ring globally in 38 million locations.
The word “ring” refers to a finger ring that eliminates the need to carry a wallet or card. When you make a purchase you swipe the ring as you would a credit or debit card.
Operating in the United Kingdom PSI-Pay is a Fintech company that is regulated by UK law. PSI-Pay provides payment solutions to companies. Kerv is an alternative payment company.
Kerv users can use debit or credit cards to load their account. Paypal and transfer from bank accounts may also be used.