Digital Wallet, E-Wallet, What is Digital Wallet, What is E-Wallet, Types of E-Wallet, How Digital Wallet works, Advantages of Digital Wallets, Top E-Wallets in India
Do you know What is Digital Wallet? or E-Wallet? This digital wallet has brought a huge change in the payment service. Now consumers can easily pay the price of their purchases with the help of these Digital Wallets or E-Wallet. When our Prime Minister Narendra Modi had announced demonetization, then new rupees were not immediately available because it is very difficult to execute such an announcement in such a big country, so digital payment was given the most important at that time. Some companies like Paytm, Mobiwik came forward to help people. Since the digital payment gradually became a part of our life, other economists and scholars believe that this digital payment system is going to become the most used payment system in future.
So now the matter arises that what are the digital wallets or e-wallets and how is it making our life easier. This digital wallet is nothing but electronic version of physical or traditional wallet with the help of which we can easily pay our payment. When we use this digital wallet in our smartphone then it is called mobile wallet. There are many doubts among people regarding the use of this digital wallet, so today I thought that why not you should be given complete information about what is digital wallet or what is e-wallet? So that you too have a good knowledge about it.
What is Digital Wallet?
The full form of E-Wallet is Electronic Wallet, which refers to a wallet which is not physical but has a digital existence which can only be seen online. It is a type of electronic card which is used for online transaction only through computer or smartphone. The utility of this e-wallet is similar to that of a credit or debit card, about which I have already said. To avail the type of facility or to make payment, the e-wallet needs to be linked with the person’s bank account. The main purpose of e-wallet is to make paperless (cashless) money transfer more easy.
In such a situation, e-wallet is getting more encouragement for digital payment system. All these things are being made possible with the help of some very successful digital payment apps of the government such as the BHIM app or the Unified Payment Interface payments app.
Types of Digital Wallet
1. Closed E-Wallet
2. Semi Closed E-Wallet
3. Banking Wallet
1. Closed E-Wallet:- It is often used in e-commerce website where the customer can easily shop for the goods he/she needs.
2. Semi Closed E-Wallet:- We can use Semi Closed E-Wallet to make payment in every platform. A fixed amount can be kept in it but we can not withdraw any kind of cash from it.
3. Banking E-Wallet:- It is a very special E-Wallet where the consumer’s bank account is given the gross of an E-Wallet. With this, the customer can use his account on the basis of a wallet.
How Digital Wallet works?
All the details of the user are saved in the card of a digital wallet, so that the customer can easily shop online. There are mainly two parts of a e-wallet or mobile wallet, software and other information. The software part stores personal information and provides security and encryption to the data, while the information part has a database of user-supplied details including their name, postal address, payment method, amount to be paid, credit or debit card etc. If I tell about the working of digital wallet or e-wallet then the Masterpass digital wallet first ask customers to register so that they can take advantage of it service, for which they have to provide their physical card details.
All this information is then verified through the OPT authentication process, on the after that the registration process is complete. Once this process is complete, then a person can use it to buy anything online. If there is an option of Masterpass available as a payment mode. Payment can be made here by filling in the Masterpass card id and password correctly. Here the transaction is authenticated through 3D secure pin or One Time Password.
What can be bought through online payment?
When used for goods and services through e-wallet registration to make payment, then it takes very less time as compared to other credit or debit card payments. We use digital wallets to pay utility bills, DTH plans and mobile bills or recharge. In e-commerce sites you can use digital wallet to buy. Since most e-commerce sites have diets with other digital wallet companies, customer care easily make payments with the help of this.
How do we use Digital Wallet in E-commerce site?
1. First login to your e-commerce site.
2. After that add the respective product to your cart.
3. Then after that in payment mode, select ‘Wallet’.
4. Select your respective wallet there then make your payment.
Advantages of Digital Wallets
Here I am going to tell you about the different benefits of digital wallets.
1. We can use digital wallets for online shopping from E-Commerce websites.
2. You can also pay many utility bills such as electricity, prepaid recharge, booking movie tickets, telephone bills etc.
3. While making payment, we do not need to repeatedly give ATM or credit card details like card number, CVV etc.
4. You can order food online.
5. To make travel bookings.
6. If for some reasons, the transaction fails then we get the money back soon.
7. To transfer funds online through digital wallet.
8. To buy many financial products such as mutual funds and insurance.
What is required for using Digital Wallet?
Let’s know about the four things which are most important for the use of Digital Wallet or E-Wallet.
1. Bank Account
3. Internet (2G/3G/4G) connection
4. Wallet App (Which is free)
Top Digital Wallets in India
Ever since demonetization has left its impact in India, it has increased digital payments along with it to a great extent. Nowadays people are mostly choosing digital payment in place of cash. Due to this there has been a lot of increase in cashless payment. To manage the service of these cashless payments, many e-wallets companies are standing in the market today.
We can use Paytm’s wallet in many places such as for shopping, for paying electricity bills, recharge mobiles and Dish, TV, for booking etc. With this it is very easy to use and safe too.
We can use MobiKwik wallet mainly for recharges, shopping and ordering online food. Along with this, weekend also in cash the points of our cards in money from which we can do mobile recharge.
PhonePe is also similar to Paytm where you can do many things like recharging, paying, electricity bill, ordering food online, booking gas etc. But it gets the most offers and discounts compared to all other wallets.
We can use Freecharge mainly to order recharges, shopping and online food. Along with this, it can also be used to pay electricity bills.
1. Why should we use Digital Wallet?
Ans. Digital Wallet is very safe, secure and fast mode to fill digital payment when we buy any goods and services. This prevents us from needing cash.
2. Where can we use Digital Wallet?
Ans. We can use these wallets only where cashless/digital/contactless payments are being accepted. Payment can be made very easily from this.