In this age of technology thriving immensely and ease of access being the foremost priority, digital wallets have become indispensable to all our financial transactions. Almost nobody now carries large wads of cash in a physical wallet. Everyone has switched to digital wallets or wallet apps, making minor and major offline and online payments contactless, convenient, and secure. Let us now understand what a digital wallet is.

What are digital wallets?

A digital wallet is an app that allows you to make digital payments for an array of online and offline services without using your credit card or entering bank account details. It refers to an online service that enables individual customers or businesses to make transactions electronically. Digital wallets can be created by downloading the wallet app of the bank in which you have an account.

A person must load a desired amount of money from a credit card or a linked bank account to the wallet and eventually make payments without repeatedly entering details.

How do digital wallets work?

Create an account with a trusted bank

• Download the wallet app of the same bank
• Fund or transfer as much money you wish from your linked bank account or credit cards. Your wallet is now ready.
• Payments can be made in various ways:
  • Scan the QR code using your wallet app
  • When using e-commerce websites: Enter your credentials into the merchant's form at the end of the purchase. Then, sign up for the digital wallet by entering the username and password.
  • When making offline purchases: Pay from your wallet app at the point of sale or billing counter. This uses a near-field communication system.

Pros of digital wallets

●     Enhanced safety: Consumers are not required to fill out order forms on each site when they purchase an item because the information has already been stored and is automatically updated across shopping sites. The information is encrypted, thus preventing fraud.

●      Convenient: One no longer must carry physical wallets or plastic cards. We always have our phones with us, making transactions easier to disburse. Digital wallets also come in very handy for making micropayments.

●      Better control: Digital wallets help make payments and transfer money to and from a bank account or to a family member. A wallet app can recharge a phone, pay utility bills, book accommodation, buy online travel tickets, and more. It also provides a digital passbook for tracking expenses.

●      Rewards: Using a wallet app, you receive many reward points and cashback offers.

Conclusion

Digital wallets are superior to physical wallets and can be easily used through a wallet app. They provide secure, easy, and rewarding payment options to help you manage your finances better.