This article is instructive on the term of digital wallet. It therefore defines it, concerns its definition and technology, types and application and then leads to a short outlook.
Summarized, a digital wallet is a software application, commonly use for mobile phones, tablet and handheld computer, that acts as an electronic version of a physical wallet.A digital wallet provides a convenient and secure execution of payment online. 1)
In the late nineties several interested parties began working toward to establish a digital wallet standard named (ECML). This standard allows fast and secured online payment via digital wallet in phones, tablet or laptops.2)
Digital wallet- its software that’s allowed to store data containing encrypted credit card information linked to personal information. Is now an E-Commerce purchase transaction performed, the buyer’s name, the credit card number and delivery address is automatically entered, when digital sales will be handled on the wallet.3)
The expressive digital wallet applies to a range of applications that permit customers to electronically shift money from private accounts in order to pay direct for products or services. The fundamental idea of a Digital Wallet, as well as known as an e-wallet, is to generate a protected online space for retention payment information that can be retrieved by a registered user at any time, in any place. No individual admission of account information is needed when using an e-wallet program. 4)
We can distinguish between two basic types of digital wallet: one is owned by consumers and the other one is owned by provider-websites.
The easiest digital wallet program is owned by vendors. That means a website offers to store payment information for next time. When a website offers to store payment information for further or next activities, typically available by password, the website is offering to set up an e-wallet. When the customers visit the website next time the e-wallet will act like a real wallet just enter his identifying information and usually then do little more than click to pay. The customers do not need any more his real wallet or enter any numbers into the site.
A more sophisticated digital wallet system is a personal used wallet program. Personalized wallet systems give permission to users in order to enter their payment information manually, including credit cards and bank code number to create a personal account. To ensure protection against internet piracy the account is usually secured with a multitude of passwords and authentication challenges. If this option is selected, the account can often be used over the Internet to make payments on any site that supports its technology. The accounts maintain the electronic commerce by purchases, debit memos and deposits with information that has already been stored and validated. Some examples of popular personal e-wallet programs are PayPal ™ and Moneybookers , to name just a few of them.5)
The digital wallet soon to be in every pocket: In the future more and more digital wallets will be mobile-compatible, which means that users can enter and manage accounts from their phones. Increasingly purchases are done with web-compatible mobile phones, and with this increasingly trend, more and more mobile phones support digital wallet programs. Branch experts and professionals forecast that digital wallets will progressively be the favoured way to pay for most every purchase. 6)