By using digital wallets you can safely store all of your payment information and passwords for any number of payments. As the name suggests, they are digital and electronic which means you don’t need to have cash at all to make payments. Because of digital wallets, you can make payments fast and easily without ever worrying about forgetting your password. Consumers can make online transactions quickly with the technology called near-field communications.
There are so many things that you can do with digital wallets. Digital wallets can store your loyalty card information and even digital coupons you get from different offers while making online payments. You can call a digital wallet an e-wallet since it is completely electronic.
With the rise of the digital wallets, people don’t need to carry their physical wallets with them anymore because digital wallets store and carry all of your payment information securely and comfortably. Now, the companies that collect their customers’ data in order to sell third party companies are having the hardest time.
In order for a product to sell on a global scale, companies need to know their customers data such as their location, preferred choices, habits, likes and dislikes, and other personal information. On the other hand, for customers it is not a good thing.
With the increase in the digital wallets, many developing countries can participate on a global scale in the financial system. Merchants and traders can accept payments for the services rendered and they can also receive money from their friends, family, and even people from other nations.
The best part about digital wallets is that it is not necessary for the users to have a physical bank account and that’s why people even in rural areas can connect with each other. The examples of digital wallets are Adyel, Accelitec WalletBuilder, Adyel, Airtel Money, AlliedWallet, Alipay, etc.
Now, we come to the mobile wallets. Mobile wallets and digital wallets are similar up to some extent. They store your payment card information on your mobile device through which you make in-store payments. The increasing consumption of mobile phones and electronic devices such as smartphones, tablet, and laptops has caused businesses to transform their businesses in an ever-changing way.
Financial sector companies are emerging to offer their merchants and clients digital platforms and solutions which are recognized as Fintech Sector. The payment sector of financial industry is booming with innovations. With the help of e-commerce platforms, businesses of all levels are transforming themselves to meet their users’ demands. By using smartphones, tablets, and other such electronic devices, merchants are adapting to both online and offline transactions.
You can easily download a mobile wallet app and nowadays mobile companies are providing them already installed in their products. You can store all your credit card, debit card, coupons, or reward information. After you install the app and entered your payment information, the wallet saves this information with the help of personal identification format such a QR code or an image.
The technology that is used while making the payment is called near-field communication (NFC). Radio frequencies are used to communicate between devices.