Is e Wallet an alternative support card option?

Elie Ferzli wrote in “Al-Akhbar”: Many companies aspire to enter the world of instant money transfer applications, which has already taken off. However, the leap that financial companies are waiting for is to start officially implementing the e-Wallet system, which allows them to have money in the application without the client having a bank account. As the information confirms, the Banque du Liban is working on the issuance of a circular to legalize this service, but until then, some have complained about the efforts to establish a market share for one of the sponsored companies before the opening of the tender. .

In the intermediation decision issued by the Banque du Liban on 01/17/2020 (No. 13183), the bank authorized financial companies and banks to carry out banking or financial operations using mobile or fixed electronic devices through applications or electronic programs, through the use of customer cards or bank accounts. Several banks.
It is true that bank transfer was available to bank customers for a long time, and through their own applications, but what was new in the circular was to allow immediate transfer or payment, so that the money reaches the recipient’s application as soon as be sent, while the previous mechanism was limited to giving the payment order electronically. To be practically implemented by bank employees, in a traditional way (through the approved fast network between banks).

Financial industry insiders consider that this service, which emerged as a result of numerous complaints, was delayed for years and made it difficult to catch up with the world, which witnessed a great development in payment methods. What adds to the difficulty is the great financial and monetary crisis that afflicted Lebanon. However, they claim that it is no longer useful to wait any longer, plus the app, if widely adopted by people, may address one of the problems facing the economy now, namely the widespread circulation of cash. Precisely at this time, when the tightening of cash withdrawals intensifies, the Central Bank of Lebanon considers these to be one of the alternative options that is expected to help reduce the demand for cash. Their sources also indicate that one of the benefits of the application is that it provides a fast and secure transfer of funds, and that it can be an alternative or complement to the long-awaited support cards. Adopting the application as an alternative to cards allows an immediate benefit to a greater number of people, since there are many more smartphone holders who have bank accounts. They can practically benefit from the maintenance amount by withdrawing part of it in cash and adopting it as a form of payment.
Those hopes placed on the mobile payment system cannot be fulfilled in light of the current circular. The importance of pay-per-use applications in the world lies in their transformation into electronic wallets, but the generalization did not allow access to these limits. It is true that it allowed, in principle, to develop means of payment, but the matter was limited to those who have cards or bank accounts, while the application of the virtual wallet system allows anyone, and specifically those who are not bank customers, to benefit of the money transfer service, so that your money is present in the application and you use it through it like any cash, as if it were in your wallet.
The Banque du Liban realizes that the interest of money companies and banks in the service derives in the first place from the assumption that the e-Wallet principle will soon be implemented, especially that investment in the application leaves of having commercial value if services that include banking customers are satisfied. Therefore, the bank sources, as well as the sources of financial companies, confirm that the Central Bank is preparing a new circular that establishes rules and principles for the work of smart wallets.

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