E-wallet (sometimes called digital wallet) is a type of electronic card that allows you to pay for things, through a computer or a smartphone. It is a pre-paid account in which a user can store his/her money for any future online transaction. It is password protected. An E-wallet needs to be linked with the individual’s bank account to make payments. Its utility is same as a credit or debit card. E-wallet is a secure place that contains other items such as a driver's license, gift cards, tickets transportation passes etc.
Note: The main objective of e-Wallet is to make paperless money transaction easier.
Components of E-wallet
it has mainly two components:-.
- Software: It stores personal information and provides security and encryption of the data.
- Information: It is a database containing user details such as their name, shipping address, payment method, amount to be paid, etc.
Requirement to using an e-wallet
- A Free/Paid wallet app.
- Smart phone.
- Bank Account.
- 2G/3G/4G connections.
- Download the app on your device.
- Sign-up by entering the relevant information.
- The user will receive a password.
- Load money using debit/credit card or Netbanking.
- After shopping online, the e-wallet automatically fills in the user's information on the payment form.
- Once the online payment is made, the user is not required to fill the order form on any other
website as the information gets stored in the database and is updated automatically.
Various e-Wallet payment gateways
There are many e-Wallet payment gateways in India such as Paytm, Mobikwik, PhonePe, Freecharge,
Airtel Money, State Bank Buddy, ICICI Pockets etc.
Note:- PayTM is the largest digital wallet app in India.