A digital wallet is also popular as an e-wallet. The system stores the payment information and password of the user securely. You can use it to make mobile payments using a smartphone fortified with proper app along with an NFC [Near-Field-Communication] microchip at a POS [Point of Sale] terminal enabled by NFC.
Your pocket leather wallet stores all kinds of precious possessions. It tightly holds cash, family pics, driver’s license, credit/debit cards, insurance ids, and more. Unfortunately, your leather wallet can get stolen and the thief can easily blow your cash and dry your credit account. On the other hand, my digital wallet is encrypted software, which offers more protection against fraud.
Components of digital wallet
- The system – It is a platform where the wallet is created. Linkages to servers and supportive infrastructure are included for better system functionality.
- The application – Software designed with an interactive design for ease-of-use along with maximum security over users’ sensitive information.
- The device – Digital wallet needs a device enriched with computing capabilities. It includes many hand-held devices like iPhones, Smartphones, and even PCs and laptops.
Digital wallets at POS
Digital wallets can be used to pay for purchases by just waving or taping the enabled device before the NFC-enabled terminal during the checkout process. This transaction is also termed as contactless payment. If necessary, a password or finger scan is provided for transaction approval. Encryption and security are provided for an actual transaction and personal information.
The NFC receiver within the terminal identifies the device signal. The microchip or secure element within the terminal that stores financial and personal information validates the transaction for processing. The designated credit card of the shopper is charged and a sales receipt is given, just like cash transactions.
Digital wallet benefits
Storing necessary cards and crucial data in software means you don’t need to carry cash, driver’s license, insurance ID, credit cards, etc. inside your wallet. Everything necessary is in your hand-held device. It is easy to use and manage.
The queue at the checkpoint moves faster with such an app because the payment gets conducted in less than 60 seconds. Digital wallet saves your time needed to enter ID or credit card details because every information is stored inside the software is verified.
You can analyze your stored transaction regularly to ensure that expenses are within control. For those who find it hard to manage their budget can set limits. This prevents spending a large amount of cash.
The data stored in the software is encrypted. The transactions need to be confirmed using passwords or fingerprints. Gaining access to your mobile can be easy, but fraudsters will find it hard to steal your financial information.