VIRTUAL WALLETS, E-WALLETS, DIGITAL WALLETS
Who have ever thought, invention of computers will fetch the world to you? This development is so unique that it took the human world to realm where everything is made available at your finger tips.
There was a time, people enjoyed shopping clothes, groceries , going to financial institutions ,visiting hospitals etc, though it was time consuming. But, now things changed.
Now you want clothes ,just tap the phone, you will be directed to an array of clothes that which you have never seen or even have chance to see in retail shops. You want groceries, tap the phone, select the items, there it is at your door steps.
Do you want to transfer money to your friend or parents without going to banks.
Then seek the help of virtual wallets. Yes, Virtual wallets allows you not only to transfer money but also to pay for the purchases you do . How easy it has become, right?
Let’s get started with virtual wallet.
WHAT IS A VIRTUAL WALLET?
Virtual wallet is a module inside our software system. Virtual wallets or e-wallets permits you to hold the money virtually. This wallet does all the functions of normal currency. Covid 19 has promoted the use of e –wallets.
As people where restricted to go out or locked down for a while wallets turned out to be the most convenient mode of money transactions. Governments did promote this cashless and cardless system of payment. It did put an end to visiting banks, long waitings in queue, filling up the forms of particulars, swiping the cards, entering the cvv codes in shops etc, etc…
What a relief! right, sitting back in the corner, doing online purchase and payments being done through e-wallets.
Wow, what a mode of transactions .Simply, it breeze through the wide range of all the financial and non financial transactions. It’s salient feature is anytime, anywhere ,ie., using your digital device to transform the money, no matter where you are or what the time is…It not only does the money transfer but also records all the information regarding your previous payments. It also stores details of your bank account like credit, debit cards, gift cards, coupons and other id’s.
HOW TO USE VIRTUAL WALLETS.
Setting up a digital wallet varies depending on the brand of smart phone. Say for eg, Apple pay is only available on apple devices. You cannot set Samsung pay on android phones. Every specific company have their own methods of setting up a wallet.
Below given are the general steps to set up a wallet on your device .
- Download the app:-First thing you have to do is download the app from the app store.
- Enter the details:-Ones you install the app link it with your bank credit or debit card. For this you can either take a picture of the card or you Can enter the details manually.
- Agree to the terms and conditions of the concerned company.
- Activate NFC:-Near field communication enables you to exchange data with other devices when in close proximity.
- Start spending:-You are now ready to activate your mobile wallet and start spending.
TYPES OF E-WALLETS
THERE ARE THREE TYPES OF E-WALLETS
- Open wallets:-You can transfer the money in mobile wallet and you can withdraw the amount later from the money deposited in the wallet .It is directly used by a bank or through a third party. Eg for open wallet is paypal.
- Closed wallets:-As the name suggest one end of the wallet is closed which means you can put money into the wallet, but you are not allowed to withdraw it. It is linked to the specific merchant. It does not allow payments to the third party. In effect it serves as a prepaid card. Eg for closed wallet is amazon pay.
- Semi closed wallets:-It allows you to transfer fund in the mobile wallet to multiple merchants till the contract between the merchant and the mobile wallet company ends. You are not allowed to withdraw the fund in cash but can withdraw the fund into a bank account.
BELOW ARE SOME OF THE EXAMPLES OF VIRTUAL WALLETS.
- Apple pay
- Samsung pay
- Pay pal
- Chase pay
- Venmo
- Google wallet
- Zelle
- Android pay
BENEFITS OF VIRTUAL WALLETS
- Very simple and time saving:-Bid adieu to card payments and welcome virtual wallets .Virtual wallet helps you to make payments easily and quickly. After purchase you need not wait in long queue to pay the bill. Instead, the only thing you have to do is just hold your phone over the payment terminal and after verifying the purchase you did ,you can start spending right away. Everything happens in a matter of seconds.
- No fraud plays allowed:-Virtual wallets are highly secured. After downloading the app, you have to enter your details. The details that you entered are highly encrypted. It is not very easy for someone to play foul with our card account number. If you miss your credit card there are chances for others to misuse it but wallets are safe on this side. Digital wallets use payment codes randomly and therefore, codes cannot be used again there by, blocking the use of wallets by strangers. Besides e-wallets use biometric details to authorize a payment. Furthermore, your card account number is not communicated ,when data is transmitted from a digital wallet. So no other member other than you be able to use your card number in future.
- Good bye to fatty leather wallets:-Virtual wallets don’t just transfer money but also can store details of your account number like credit card, debit card, driving license, gift cards and other id proofs. You can have all of them at one place at all times thus, leaving no space for bulky leather wallets. Isn’t it very convenient.
- Wide variety of use:-E wallets can be used for variety of transactions like bill payments for DTH, postpaid, data card, to buy air, bus and train tickets. In addition to this, you can pay for your utilities like gas, water and electricity. Just forget going to respective places to pay the bills. Everything will be done on your finger tips.
- Auto pay facility:-This facility helps you to do the bill payments automatically from the available balance in your wallet on the specified date. Which means ,no need to worry if at all you forget to pay the bill on due date .Just set the date on which you have to remit the bill, and rest will be done by the auto pay facility of e-wallet. Isn’t it a relief?
- Reward and discounts:-Digital wallets offers reward points, cash backs, bonus, gifts and other incentives .This helps you to save money.
DRAWBACKS OF VIRTUAL WALLET
- Mobile connectivity and charge:-Poor network connection is a hindrance to complete the transaction. You must carry a charged device to go forward with electronic wallets.
- Security:-Though virtual wallets are highly encrypted still there are much more things to be concerned about. If your device is lost or stolen and if it is not highly protected with passwords there are chances to misuse your wallets.
- Limitless spending:-There are chances for you to become a spendthrift. This is going to be an ordeal for those who have the tendency to spend more when they cannot see and touch the real money.
- Not widely accepted:-Virtual wallets are operated using special soft wares. These soft wares are to be developed by software engineers. If companies want to develop their own soft wares, they have to hire experienced engineers. So money matters. They have to be Fairley paid for developing soft wares and will take some time. due to this reason not all merchants accept digital wallets.
Virtual wallet is the future bank. Convenience is the key factor of virtual wallets, which is the reason why people started embracing digital wallets. Survey’s suggest that digital spending will exceed $10 trillion by 2025.Merchants who don’t support the e-wallet will definitely have to face the risk of ending their business. Customers always look forward to the easiest methods for transferring money which, virtual wallet can do. Customers must be satisfied.
