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What is a Digital Wallet, its uses and examples?

Author: Lisa Transfy
by Lisa Transfy
Posted: Jun 27, 2022

A digital wallet refers to software, an electronic device, or an online service that enables individuals or businesses to make transactions electronically. It stores the payment information of users for different payment modes on various websites, along with other items such as gift coupons and driver’s licenses. A digital wallet is also known as an e-wallet. Traditionally carried in the form of a smartphone app, a digital wallet can also exist in other forms, such as a desktop. However, the mobile app is the most popular version of the digital wallet, owing to its mobility and flexibility.Digital wallets are not only convenient to use in certain cases but also safer than traditional wallets. Users of digital wallets need to download the specific apps created by banks or trusted third parties to avail of the service. Significance of a Digital Wallet1. A digital wallet securely stores all the payment information of users in a compact form. Thus, it greatly reduces the need to carry physical wallets.Companies that need to collect consumer data for their marketing needs can benefit greatly from digital wallets. They get to know the purchasing habits of consumers and increase the effectiveness of the marketing methodsMarketing StrategyA marketing strategy refers to a long-term plwallets. Amazon Pay is an example of a closed wallet. 2. Semi-closed WalletA semi-closed wallet allows users to make transactions at listed merchants and locations. Although the coverage area of such wallets is restricted, both online and offline buying can be done through the wallets. However, merchants need to enter into agreements or contracts with the issuers for accepting payments from the mobile wallets. 3. Open WalletBanks or institutes partnered with banks issue open wallets. Users with open wallets can use them for all transactions allowed with a semi-closed wallet in addition to withdrawal of funds from banks and ATMsAutomated Teller Machine (ATM)An Automated Teller Machine, better known as an ATM, is a specialized computer that makes it convenient for bank account holders to manage their money and transfer of funds. Digital wallet examples 1. PayPalThe PayPal One Touch™ app is an extension of the usual services offered by -PayPal Holdings, Inc. is one of the largest online payments companies that allow parties to make payments through online funds transfers. Online payments are an alternative to traditional payment methods such as money orders and checks. PayPal provides a platform foan formulated by a business to achieve specific organizational objectives. The plan details how the business of their products. However, it leads to a loss of privacy for consumers.-Many developing countries using digital wallets may be able to increase their participation in the global financial market. -Digital wallets allow users to transfer funds to friends and family residing in different nations.-Moreover, digital wallets eliminate the need for physical banks and companies in order to open and maintain a bank account. Hence, they also connect individuals and businesses in rural areas. -A digital wallet is required to make transactions and maintain balances of cryptocurrenciesCryptocurrencyCryptocurrency is a form of digital currency that is based on blockchain networking. Cryptocurrency like Bitcoin and Ethereum are becoming widely accepted.. Types of Digital WalletsThe following are the three types of digital wallets: 1. Closed WalletA company selling products and/or services can develop a closed wallet for customers. Users of a closed wallet can use the funds stored to make transactions with only the issuer of the wallet. The money from cancellations, returns, or refunds is stored in the r online vendors and auction sites. Users can skip the login screen and don't need to enter passwords to make payments or transfer funds faster. PayPal's mobile wallet app can also be used on a desktop, laptop, or tablet. 2. Apple PayApple Pay is now available exclusively on iPhones, iPads, and Apple watches. It allows users to make purchases both online and in-store. Users can unlock their phones and hold them near a compatible point of sale system for in-store transactions. With Apple Pay, payments are seamless and secure, providing an ease of use. 3. Google Pay Google Pay lets users make payments on an app or website using debit or credit card information stored in their Google Account, Google Play, Chrome, YouTube, and Android phones and watches. Additionally, the app supports other electronic documents such as student ID cards, movie tickets, gift coupons, store cards, and transportation tickets. 4. TransfyTransfy is simplest, convenient and the most cost effective way of sending money for individuals and businesses across africa. It can be used as multi currency wallet and for international mobile recharge.

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Transfer money through a secure and trusted system within Africa. Send Money In Minutes. 24/7 hour of service available. Online Money Transfer Africa.

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Author: Lisa Transfy

Lisa Transfy

Member since: Jun 23, 2022
Published articles: 1

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