Electronic Wallets: Their Essence and Practical Application

IT solutions

With each passing day, virtual payment systems are increasingly displacing traditional wallets due to their convenience, versatility, and high level of security. Electronic wallets open up a world of fast digital transactions for users, enabling transfers both within and beyond national borders, earning income online, and paying for goods and services. Let’s explore the fundamental principles of popular payment systems to help everyone choose the most convenient service.

What is an electronic wallet?

An electronic wallet is an indispensable tool for conducting online payments, and facilitating fast digital transactions worldwide. Users can directly fund their wallets or link them to their bank accounts. Assets can be stored in one or multiple currencies, and the turnover of funds in such payment systems occurs in a virtual environment. Clients can withdraw funds to a bank card or receive cash at designated points at any time.

Advantages of using electronic wallets:

Wallet accessibility worldwide – electronic systems are not tied to a specific country. Online wallet management – creating, verifying, topping up, sending, and withdrawing funds can be done without visiting offices or searching for ATMs. Instant crediting of funds upon withdrawal or transfer to another wallet. Capability for transactions with businesses and individuals from different countries. Minimal fees for transfers and withdrawals. High-level security and reliable protection of personal data. How to create an electronic wallet?

To register for a digital wallet, visit the website of the chosen electronic system and go through a simple identity verification process. Registration takes no more than 3-5 minutes and includes the following steps:

Visit the website of the chosen payment system or install its application. Navigate to the registration section. Enter your email address or mobile number. Fill out a form with personal details if required: name, surname, country of residence, etc. Confirm your email or mobile number by following a link or entering an SMS code. Some services may require linking your account to a bank account or undergoing verification. Immediately after registration, the wallet is ready for use. While the operational conditions in various systems are similar, each has its unique features.


A leader in the digital payment sector spans across more than 200 countries and supports 25 currencies. To use the service, the user registers their account on the website or through the mobile application, provides personal information, verifies the account, and links a bank card. A distinctive feature is the ability to make transfers without entering IBAN or bank details; knowing the recipient’s name, email address, or phone number registered with PayPal is sufficient. The PayPal wallet is widely accepted worldwide and has dominated digital payments for the past decades.

Transaction fees in PayPal depend on the country and type of transfer. International transfers from Ukraine may incur fees ranging from $1.99 to $3.99. In addition to this fee, there is a 3.4% charge on the amount when transferring from a card. Withdrawing funds to a bank account or debit card is free, but there is a 3% currency conversion fee.

PayPal offers two types of accounts: personal and business. Corporate accounts, designed for businesses, are currently not available to Ukrainian users, limiting the use of PayPal for earning on platforms like Amazon or Etsy.


Geared towards freelancers, allows users to open accounts in four currencies: dollars, euros, Japanese yen, and British pounds. The company serves over 150 currencies in 200 countries, providing free account opening and maintenance. Users receive a unique wallet number for transactions. Depositing funds and transferring them to other clients is free, but payments to unauthorized users incur a 2% transaction fee. The fee for transferring funds to Ukrainian bank accounts is up to 2%, and for currency conversion, it’s 0.5%.


Actively used in Europe, supports over 30 currencies and allows users to open personal or corporate IBAN accounts. Transfers within Europe are free for private clients in the Single Euro Payments Area. In Ukraine, the commission for transferring in euros is 1.5% of the amount, and for transfers in other currencies, it’s 1.15 euros plus the specified percentage. To make a transfer, it’s enough to provide the recipient’s phone number or email address.


Besides serving as a storage for digital assets, functions as a cryptocurrency exchange. The wallet is suitable for personal and corporate use, enabling transactions in 127 countries. The payment system generates a new account for the recipient and supports client anonymity. Internal transfers are subject to a 0.5% fee, bank account top-ups start from 3.99%, and international transfers are charged at 0.95%. Users can request a payment card for fee-free cash withdrawals.

Mobile payment services Apple Pay and Google Pay

Despite not being typical electronic wallets, enjoy immense popularity among users. Apple Pay provides a secure and contactless payment method through the iOS, iPadOS, and watchOS operating systems, as well as on websites using the Safari browser. Users can add their credit or debit cards to the Apple wallet for transactions, confirming payments with a password set on the device or using Face or Touch ID. This payment method allows for avoiding the use of physical cards.

Google Wallet

Also ensures secure and instant electronic payments via a smartphone at any point-of-sale terminal when placing an order. This mobile wallet is designed for devices on the Android platform.

When choosing an electronic wallet, it is important to consider the personal tasks it should address. For instance, multi-currency services like Payoneer or Payeer may be suitable for freelancing or frequent international transfers. It is also possible to register multiple wallets, as this takes only a few minutes, and most services do not charge maintenance fees.

An electronic wallet is a digital tool for storing assets in various world currencies, easily registered on the official websites of payment systems or in smartphone applications. Each of them provides features for fund deposits and withdrawals, and virtual transfers within a specific country, and worldwide.

The advantages of using electronic wallets include convenience and security.

Due to wallet storage on a personal device and the use of a password, Face, or Touch ID, payments become contactless and secure. Additionally, electronic wallets offer reliable protection of personal data by encrypting information to prevent access by fraudsters. They also enhance expense tracking, keeping a record of all transactions, and ensuring a quick payment process, increasing the conversion rate.

However, there are drawbacks, such as dependence on a mobile device, high transfer fees, and limited availability in some stores.

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