Volodymyr Belous, head of the development management of transactional business of the First Ukrainian International Bank

Digital wallet in its economic essence can be compared with a separate currency in the market and payment cards are an instrument of the remote access to the account. But when considered exactly in the context of the use when performing settlements (fr om the consumer's point of view), the key difference is in the ability to access the cash. In the case of a payment card this access is incommensurably simpler than in the case of a digital wallet. Since the withdrawal of funds fr om the digital wallet is only possible through the channels that have a contractual relationship with the issuer of electronic money. In other words, electronic money is forced to return to the traditional channels, that is, the banking system. And by no means always electronic money systems have contractual relationships in all countries wh ere this electronic money is used.

At the same time, digital wallets, although having a smaller geography of use, make it easier to implement the bond between the seller and the consumer, as well as have no geographical boundaries.

Speaking about the risks, the wallets themselves do not carry any risks. Typical area of their use is financial settlement servicing in the electronic channels. This is particularly relevant for transnational transactions, wh ere the use of traditional settlement methods is difficult or because of the regulatory requirements and limitations, or it is simply uncomfortable.

Thus, the risk for the client is only in the probability of not receiving a service, for which payment via electronic money was made. You can also project a situation that electronic money system will cease to function and the client will not be able to withdraw funds from it. However, these risks do not seem significant taking into account that the majority of transactions are carried out for single transactions in the C2C segment.

You can read a full version of the article on the website of Prostobank.