Digtal+wallet

Digital wallet:-

A **digital wallet** (also known as an **e-wallet**) allows users to make electronic commerce transactions quickly and securely. A digital wallet functions much like a physical wallet. The digital wallet was first conceived as a method of storing various forms of [|electronic money] (e-cash), but with little popularity of such e-cash services, the digital wallet has evolved into a service that provides [|internet] users with a convenient way to store and use online shopping information. The term “digital wallet” is also increasingly being used to describe mobile phones, especially smartphones, that store an individual’s credentials and utilize wireless technologies such as [|near field communication] (NFC) to carry out financial transactions An individual’s bank account is usually linked to the digital wallet. They might also have their driver’s license, health card, loyalty card(s) and other ID documents stored on the phone. The credentials can be passed to a merchant’s terminal wirelessly via NFC. Certain sources are speculating that these smartphone “digital wallets” will eventually replace physical wallets.[|[5]] The system has already gained popularity in Japan, where digital wallets are known as [|Osaifu-Keitai] or “wallet mobiles”. Researchers at the [|University of Toronto]'s Faculty of Information have put together a[|"Global Overview of Digital Wallet Technologies"].

Technology:-

A digital wallet has both a [|software] and information component. The software provides security and [|encryption] for the personal information and for the actual transaction. Typically, digital wallets are stored on the [|client side] and are easily self-maintained and fully compatible with most [|e-commerce] Web sites. A [|server-side] digital wallet, also known as a thin wallet, is one that an organization creates for and about you and maintains on its [|servers]. Server-side digital wallets are gaining popularity among major retailers due to the security, efficiency, and added utility it provides to the end-user, which increases their enjoyment of their overall purchase. The information component is basically a [|database] of user-inputted information. This information consists of your shipping address, billing address, payment methods (including credit card numbers, expiry dates, and security numbers), and other information.

Application of Digital Wallet:-

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 and entered into the order fields across merchant sites when using a digital wallet. Consumers also benefit when using digital wallets because their information is encrypted — or protected by a private software code. And merchants benefit by receiving protection against fraud. Digital wallets are available to consumers free of charge, and they're fairly easy to obtain. For example, when a consumer makes a purchase at a merchant site that's set up to handle server-side digital wallets, he types his name and payment and shipping information into the merchant's own form. At the end of the purchase, the consumer is asked to sign up for a wallet of his choice by entering a user name and password for future purchases. Users can also acquire wallets at a wallet vendor's site. Although a wallet is free for consumers, vendors charge merchants for wallets. Some wallet vendors make arrangements for merchants to pay them a percentage of every successful purchase directed through their wallets. In other cases, digital wallet vendors process the transactions between cardholders and participating merchants and charge merchants a flat fee. (Computer World).