Rapidly developing digital era has revolutionized every sector even how you can carry your wallet. In the past, a leather wallet was our stalwart companion. It safely kept our cash, driver’s license, family pictures, shopping loyalty cards, credit cards and more.
Over time it became so thick that you found it uncomfortable moving and sitting. Moreover, it was not as secure from getting in the hot hands of thieves. Besides your accounts get dry, you would have to make efforts in duplicating your other necessary items like driver’s license or other sensitive information.
What’s a digital wallet?
Digital wallet or e-wallet is an umbrella for different technologies integrated to allow users to perform a variety of payment tasks. The system stores your payment details and passwords and you don’t need to worry about getting hacked because it applies an encryption system.
How users can benefit from the convenience and protection of e-wallet?
Using e-wallets like MasterCard digital wallet users can benefit in many ways.
- Eliminate the need for carrying a traditional leather wallet.
- All the users’ payment details are stored securely and compactly.
- No need to type the lengthy credit card number.
- Besides purchase information, the digital wallet even stores details about your gift cards, concert tickets and the subway or bus passes.
- No need for a physical bank account, thus allowing rural areas to get connected.
- Developing nations can participate in global financial systems.
- Participants can accept payments for catered services.
- Funds or transfers from family and friends living overseas can be received.
- With mobile digital wallet pay for purchases from anywhere and at any time.
Today, digital wallets can be used with systems that allow mobile payments. Consumers can pay for their purchases using a Smartphone. Retailers reward loyalty and can offer coupons or discounts. The digital wallet has the potential to unlock your house doors. In general, your finances and life can get organized.
How digital wallet works?
Broadly, a digital wallet can be categorized into –
- Client-side – Generally, refers to the end-user. The program gets downloaded and installed. Pertinent payment and delivery information gets entered, which is stored on an end user’s personal computer.
- Server-side – The e-wallet provider maintains the end-users digital wallet account on their servers. It offers more features than the credit card. Moreover, there is no need to carry physical cards that can get misplaced or stolen.
Merchants prefer server-side digital wallets as they have a high standardization degree. On the other hand, client-side software differs. It depends on the programmer and differences can create frustrations for the buyer and seller. Therefore server-side digital wallets are increasing in demand.
Mobile digital wallet
In the mobile digital wallet, you set an online account and to check out give your phone number and punch the PIN to purchase at offline or online stores. However, there is still a little concern about digital wallets regarding privacy and security.
In mobile digital wallet transactions, your data has to pass through the hardware of your smartphone and the operating system as well as through specific payment software towards the ultimate payment source like your PayPal or bank account. More party’s involvement can create a breach in security.
According to supporters, digital wallet notion is still better than the traditional leather wallet because you will never retrieve your lost roll of cash or purchases made using your credit card before you informed it missing.