Digital Wallet

Reviewed by Anjaneyulu | Updated on Aug 27, 2020

Introduction

A digital wallet, also called as e-wallet refers to an electronic device or online service that enables electronic transactions to be made by a person. This can involve purchasing products from a computer online or using a smartphone to purchase things from a shop.

Money may be deposited in the digital wallet before any purchases, or the bank account of a person may be connected to the digital wallet in other instances.

Users can also have their driver license, health card, credit card(s), and other identity documents kept within the wallet. The credentials can be transmitted wirelessly via Near Field Communication (NFC) to a merchant's terminal.

Understanding Digital Wallet

Secure and fair electronic payment systems are significant issues. The software provides authentication and encryption for personal and actual transaction information.

Digital wallets are usually kept on the customer side, and are easily managed by themselves and completely compliant with most e-commerce websites. A digital wallet on the server-side, also known as a thin wallet, is the one that a company produces and maintains on its servers.

Security Features

When ordering an item, customers are not required to fill out order forms on each site because the information is automatically processed, modified, and entered in the order fields via the retailer sites when using a digital wallet.

Consumers often profit through the use of digital wallets since their information is encrypted or secured by private software code.

Digital wallets are available free of charge to consumers and are fairly easy to get. For instance, when a consumer purchases a merchant site that is set up to handle digital wallets on the server-side, they type their name, payment, and shipping information in the merchant's form. Users can also buy wallets at the website of a wallet vendor.

Examples

There are few dedicated digital wallet devices, such as Dunhill's biometric wallet, a physical device which holds cash and cards together with a smartphone Bluetooth link.

Other mobile explorations with NFC digital wallet features, such as the Samsung Galaxy series and Google Nexus smartphones using Google's Android operating system, and Apple's iPhone 6 and iPhone 6 Plus using Apple Pay, are currently underway. In addition to Samsung Pay and Android Pay, there are other payment services, such as PayPal and Venmo.