What are digital wallets?
A digital wallet, also commonly known as e-wallet, is an online payment system that facilitates electronic transactions with the use of a smart device. In fact, the electronic wallet is available from most vendors in form of mobile payment system and e-wallet apps, and paying becomes just a matter of screen taps.
To put the dots on the i’s, the term “digital wallet” refers to the software that store payment information online, so you can have a digital wallet on your laptop. “Mobile wallet”, instead, specifies that the digital wallet is installed on your mobile device, as your smartphone or a smartwatch.
Regardless of the device of choice, users can decide whether to store money directly in their digital wallet or to link it to their personal bank account, so that the e-wallet become an online storage of credit and debit cards. Most of this internet-based wallet apps allow users to also keep safe their digital tickets, ID documents, loyalty cards and electronic vouchers, so that people can purchase in-stores or online with no need to bring around any chunky purse.
There are diverse types of digital wallets:
- Open wallets are the most common and versatile type of e-wallet, as they enable to process transaction with most of retailers and to withdraw money from the connected bank
- Semi-closed wallets let customers paying only with a limited group of chosen merchants, who thus need to align and make a contract with the digital wallet’s issuing company
- Closed wallets are created by a company for their own customers, and allow to pay only with the distributing company, storing also cancellations and refunds
Setting up an e-wallet on your device is effortless, find the best digital wallet for your needs and download it on your device.
How do online wallets work?
The technology that makes payments possible via e-wallets is the near-field communication (NFC). This communication protocol offers contactless, short-distanced exchanges of data between devices. It is a descendent of the radio-frequency identification system, and its technical outline was created by Philips and Sony in 2002. From the following year on, this technology has been widely adopted by leading figures in the tech industry.
The success of NFC wallets is due to their smoothness and functionality, but one of their most appreciated qualities is safety. The software of digital wallets encrypts and secures the personal information of the owner and the specific bits of information that change at each transaction.
Safety is backed up by fastness and user-friendliness, advantaging both the users and the merchants that landed their business online and set up webshop. Although, a growing number of online shoppers tend to abandon the cart due to a frustrating and jagged sales funnel. Digital wallets, storing safely the shopper’s information, let customers transfer their details quickly and accurately, so that even filling in a form takes few seconds. Together with other UX tricks, providing a straightforward, sleek experience in the final stages of an online purchase is essential to successfully convert leads – and to make your clients leave your e-commerce with a smile.
So how can you make your customers happy?
Types of e-wallets that Payvision offers
Payvision supports and offers popular, worldwide digital wallets:
Apple Pay: supplied by Apple, this mobile and digital wallet enables payments in person, via iOS apps, and with the Safari web browser. It is supported by all the Apple devices (Apple Watch included) but does not demand for any Apple payment terminal on the merchant’s side. At a contactless POS terminal, users can verify their transaction with their touch of face ID.
Google Pay: Google created this digital wallet to facilitate Android devices – and it was previously known under the name Android Pay. It powers the storage and use of other cards as flight boarding passes, coupons, and loyalty cards. The user’s details are always kept private, and Google Pay sends a one-time security code at the moment of the transaction.
PayPal: the well-known US company processes payments online for a variety of needs and users, from monthly the payments to a service under subscription to collect money among friends for a shared gift. Seen as an alternative to checks, it operates in more than 200 countries and hold funds in 25 different currencies on a global scale.
Samsung Pay: this mobile and digital wallet service is issued by Samsung Electronics, and process payments for Samsung and compatible devices. While using the NFC technology, Samsung Pay also supports the magnetic secure transmission (MST), which enables transaction sending a magnetic signal from the paying device to the payment terminal. The user’s information is still safely stored in a token, and this e-wallet asks for authentication of the payments through a fingerprint scan or using a passcode.