In recent years, the use of electronic money, from a tool for online shopping, has become an alternative method of payment to the use of cash also in supermarkets and clothing stores.
At the same time, the security of our payment cards can be jeopardized with every transaction and this is why the use of digital wallets (e-wallets) has been widespread for years, whose basic functionality is to allow us to pay anything without having to share our personal and financial data with third parties.
E-wallets Mobile money payment solution, the longest-running form of digital wallet. PayPal and Google Pay are two examples of e-wallets, whose function is to act as a protective interface between our personal and financial data, and the store or e-commerce where we shop.
The mobile wallet solution is like the wallet we have in our pockets, they contain our credit cards, or rather their identification data, but unlike the physical wallet, when we have to pay we do not give the credit card exposing it to the risk of data theft and cloning, but instead we only provide the e-mail address associated with the e-wallet and by typing the authentication password we authorize the transaction.
In the most advanced cases, e-wallets provide a double level of authentication to avoid misuse or person substitution.
In the technological society that we are living in and in the face of globalization in which we are immersed, development leads us to the emergence of new information and communication media.
This is how the information society has been configured, which is determined by the expansion of telecommunications networks, especially the internet as a means of transmission and exchange of all kinds of information and by the appearance of a new virtual market.
We are facing a new form of economy characterized by the use of computer elements, wallet app development, open networks and technology.
Advanced-Level eCommerce security
To carry out electronic commerce there is no lesser issue: electronic payment means. The diffusion of new means of payments on the internet can be considered a recent phenomenon, in fact the advancement of technology makes the issue more complex because systems are changing.
Thus, we can no longer refer only to the credit card, the debit card and the electronic purse, as isolated terms, but within the broad concept of electronic payment instruments.
Today all available payment systems differ in some details, however, they have the same purpose, to facilitate the transfer of monetary values. In general, electronic payments involve a buyer and a seller and the action of securely transferring monetary values from one to another. Such a transfer is carried out through a set of steps.
One of the challenges that SMEs have is to generate the appropriate mechanisms so that their web pages are not only informative, but also have the capacity to sell products and can carry out electronic transactions.
On the other hand, security has become the main problem, objective and concern of electronic commerce. Security in electronic commerce refers to both technical and legal aspects. Legal certainty is demanded, there is a need to have certainty about the legal regime applicable to commercial relationships established by electronic means. Technical security rests on the encryption and computer security mechanisms that are implemented, but it is not everything. The trust that is generated and transmitted to potential users is also important. This confidence not only rests on technical security, but also on legal security.
Safer than paper money
The use of new technologies for electronic contracting and payment methods, in general, will be extended to the extent that users verify that the systems work safely and that the law recognizes rights and obligations generated in a virtual environment.
The security offered by electronic money systems has to be perceived by users; Most electronic payment systems make use of cryptology, which is defined as the science that studies the concealment, disguise or encryption of information, as well as the design of systems that perform these functions, including texts, data and images.
Encrypting is transforming information, whatever its content, into another unintelligible algorithm and keys, pretending that only those who know the algorithm and password can access the information.
The development of electronic commerce of low-value items requires correspondingly the existence of adequate instruments for making micro payments, generating sales and a payment model for use of small amounts.
Increasingly common for the sale of songs, video games, movies or access to documents for which you pay individually and without the need for continued subscription, although a sale that still does not find an adequate payment system in current systems, whether credit or debit cards, due to the commissions that the merchant has to bear.
Commercial and financial entities in the eWallets are popular in developing countries are betting heavily on the replacement of paper money by electronic money, however, to expand electronic commerce requires a payment system that adjusts to the purchasing needs of users, which involve both small payments and large transactions and that they are reliable, transmitting security and trust to consumers.
One of the challenges that SMEs have is to generate the appropriate mechanisms so that their web pages are not only informative, but also have the capacity to sell products and carry out electronic transactions. In this situation, financial institutions have a lot to say in order to support initiatives of this nature.