Digital Wallets

A digital wallet also known as “e-Wallet” refers to an electronic card which is used for transactions made online through a computer or a smartphone.[1] Its utility is same as a credit or debit card. An E-wallet needs to be linked with the individual’s bank account to make payments. An E-wallet is protected with a password. [2] With the help of an E-wallet, one can make payments for groceries, online purchases, and flight tickets etc. Money can be deposited in the digital wallet prior to any transactions. The credentials can be passed to a merchant’s terminal wirelessly via near field communication (NFC).

E-wallet has mainly two components, software and information. The software component stores personal information and provides security and encryption of the data. The information component is a database of details provided by the user which includes their name, shipping address, payment method, amount to be paid, credit or debit card details, etc.

BENEFITS

• Increases the security of the transaction since the wallet typically does not pass payment card details to the website.
• The main objective of e-Wallet is to make paperless money transaction easier.

What do I need to start using an e-wallet?

• Bank Account.
• Smart phone.
• 2G/3G/4G connection.
• A free wallet app.

Source:

1. https://en.wikipedia.org/wiki/Digital_wallet
2. https://economictimes.indiatimes.com/definition/e-wallets