Digital Mobile Wallet: How it Works and Digital Payments to Payroll
You are probably familiar with the basic methods for paying employees. These include direct deposit, cash, checks, and direct deposit. The methods for paying employees are evolving with the advancements in technology. Pay and Digital Mobile Wallet are gradually becoming the future of payroll. Mobile payments will reach $503 trillion by 2020. Learn how mobile wallet works, and whether mobile payroll is right for you.
What is a mobile wallet?
Digital wallets are also known as mobile wallets. They’re exactly what they sound. A mobile wallet stores all your payment information on your mobile device or smartphone and allows you to withdraw cash, credit cards, and debit cards.
A mobile wallet can be used to pay for goods or services, and also accept payments from customers. pay before you decide whether it is right for you and your employees.
Mobile wallets have many advantages, including better security, improved user experience, and protection for sensitive data. It can also save you time and help your employees by avoiding the need to deal with paper checks, cash, credit cards, or direct deposits.
Digital Mobile wallets are not without their faults. You may have internet connectivity issues when accessing your mobile wallet from a mobile device. This could cause problems with payments, such as application crashes or maintenance.
You must withhold the applicable payroll taxes if you pay employees via a mobile wallet. You must also pay your employees the amount due after taxes. To show the taxes withheld, give employees a pay slip. For accurate tax calculations, you can either track your payroll manually or use payroll software.
Applications
Accessing a mobile wallet via an app (app) on your phone is the most popular way. The app allows you to pay employees with a debit card or credit card.
There are many Digital mobile wallet apps to choose from. There may be a transaction fee depending on which app you use and the payment method used (e.g. credit card).
Digital Mobile wallet apps include:
- Venmo
- Apple Pay
- Zelle
Peer-to-peer payments
Peer-to-peer platforms (P2P) may include applications or platforms. P2P platforms generally offer free access to all users. Pay your employees from your bank account or debit card. Most employees will receive funds via their mobile wallet within one business day.
You will need to manually enter the amount of money that you are sending each employee with this mobile wallet option.
Mobile wallets for banks
Mobile wallet trends have been taken advantage of by banks and credit unions. Customers can now get mobile wallet options from banks like Chase (e.g. Chase QuickPay with Zelle).
You can transfer money to your employees’ bank accounts using bank mobile wallets To make a payment, you will usually only need the employee’s email address and phone number. You and your employee share very little financial and personal information.
Don’t worry if you don’t have access to a bank or don’t wish to use mobile banking. To transfer funds between mobile wallets, you can also use the online options mentioned above. Online options are not as secure as traditional banking institutions.
Bitcoin
You can also use bitcoin wallets to pay employees in addition to regular mobile wallets.
Let’s take a look at bitcoin briefly if you don’t know what it is. Bitcoin is an encrypted digital currency. It is not traceable. Bitcoins don’t technically have a set value but global exchanges can affect their day-to-day value.
You can pay your employees using Bitcoin payroll options. Bitcoin wallets function in the same way as other digital wallets, such as quickly transferring money to employees. The only payment that you can send with bitcoin wallets, however, is cryptocurrency.
Digital Mobile wallets can also be used in business
Mobile wallets can be used to automate other tasks, such as paying employees.
Mobile wallets can be used in your business to:
Accepting customer payments
Invoice payment
Compensating remote workers (e.g., freelancers)
Before you use your mobile wallet to pay your employees, here are some questions.
Ask yourself some questions before you use mobile wallet payments for employee pay.
Ask yourself these questions to determine if the mobile wallet route makes sense for your business:
Do my employees feel comfortable receiving mobile payments?
It is so easy to use!
What type of information do I need? (e.g. application and employee information).
What fees will I be charged for?
Are my employees subject to any fees?
Do you need an easy way to quickly and efficiently pay your employees? Patriot’s payroll system simplifies the payroll process, so you can get back on your feet and run your business. So what are you waiting? Get your 30-day trial for free today!
Security Technologies for Mobile Wallet App
- EncryptionThis is one of most powerful and reliable methods to ensure the security of all transactions. As soon as the user swipes their phone over the PoS terminal, encryption begins. It is valid until authorization. You must ensure that the technology is properly integrated before you hire a ewallet software development
company to create an app like Google Tez. - TokenizationThis has made the platform’s online mobile version more secure. This means that you don’t have to provide card details and can instead create a token that looks just like a random number.
- PasswordA password is an old, but reliable type of tool. It is able to protect any website or app effectively. The customer knows the password, which makes it very difficult for hackers to steal personal information. This method is extremely reliable and secure to keep your mobile wallet app safe.
To build an eWallet app, you will need to hire mobile app developers who are skilled and dedicated. You cannot ignore security features while you are focusing on the app’s performance.
