The Digital Wallet & its advantages

The digital wallet or e-wallet is an electronic wallet that helps you to pay electronically. Its basically an electronic device or software program through which you can do electronic transactions. Digital wallet is broad term and comprise of many forms of electronic cash transfer.

Paypal digital wallet
Paypal digital wallet

The e-wallet is particularly helpful to carry out online purchases on e-commerce website or via a mobile phone. In recent years, the checkout at grocery stores also has e-wallet option via NFC. So, you can simply tap your phone and pay your bill in a matter of seconds.

Furthermore, you can link your bank account to the digital wallet to transfer and keep money in the e-wallet. Hence, you can use that amount to spend anywhere electronically. In addition, you can use digital wallets to verify the holder’s credentials such as his/her age. These digital wallets can also pass credentials wirelessly to the terminal to make the digital transaction more secure and reliable.

How do digital wallets work?

Every digital wallet has two sides. One side is the software side while the other side is the information side. These software has encryption software that typically make wallet transactions secure.

First of all, you need to download the wallet app or software and enter the necessary financial information into it. Once done, you are free to transact anywhere electronically by just entering your username and password. This makes the digital transaction more secure due to the extra layers of security. So, you can simply avoid disclosing the crucial financial information like internet banking credentials or credit/debit card details.

Furthermore, the information side consists of data sets of user input information. It includes credit card details, shipping addresses, billing addresses and so on.

Types of digital wallets

The digital wallets have many types and it comes with a variety of forms. However, there are two broad types of e-wallets. The first is a client-side digital wallet. This wallet stores information on the client side and is easy to maintain. Furthermore, in the client-side wallets, the client needs to download the wallet to his/her computer. The most common example is the wallets for cryptocurrency like bitcoin. The wallet then enters the information automatically.

The second type of wallet is server side wallet. In this type of wallet, a company creates wallet for the client and stores all the information on the server. So, it elimintates the need of downloading wallet on the client’s computer. These types of wallets are now more popular due to its ease of use and convenience. The most common example is Paypal payment service.

Advantages of digital wallets

The digital wallets have the advantage of the convenience. During an online purchase, the wallet software automatically fills in the data and eliminates the struggle of filling all the fields. The working of digital wallets is in an encrypted format. So, it makes the transaction safe and secure.

Furthermore, there is no charge to transact online via the wallet. People can do transactions free of charge. During checkout, the user needs to just enter the CVV number in case of cards or username and password in case of wallets. This makes the transaction incredibly simple and fast.

In conclusion, digital wallets can make our life easier and convenient. There is simply no need to fumble upon checkout forms on payment gateways or for online purchases. Wallets take care of all the hard work, making our checkout and purchase simple and hassle-free.

Watch digital wallet in action

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