Digital Wallets App: Types, Ideas and Future Implications

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Commerce is gaining speed by turning into eCommerce. The digital wallets app is becoming common, providing quick, simple transactions. This made us enter an era of e-wallets. Technology has led us to use IoT and cloud-based systems. Consumers need to scan the QR code and boom the payment within seconds.

Meanwhile, during the outbreak of COVID-19, technology flourished high instead of gaining losses. The no-physical touch mode made us adopt contactless transactions.

From the grocery vendor to a plush shopping mall, every business started accepting digital payments; that made people travel cashless and worriless.

Following are top digital payment trends,

  • In the year 2020, the eCommerce market spins at $5,855 billion and mobile retail commerce and digital goods rise to$1,120 and $139 billion.
  • According to Industry Research Future’s Global Forecast Report, there will be a 15% hike in a digital wallet in the next five years; that will probably make $2100 billion by 2023.

The top digital payment trends have increased because of rapid development in eCommerce. The mobile wallet app solution made the cash out easy, just as filling the paper in books and cheques did during the subtle banking industry. It made mobile banking solutions easy.

What is a Digital Wallet?

Digital wallets app or E-wallet is a technological wallet carried on a smartphone or desktop that allows users to store electronic money instead of cash. It not only holds e-money for the range of items you need but also has an expansion to reserve tickets, passes and gift cards.

Consumers usually use it to make online transactions. A digital wallets app has the advantage of a pre-paid digital payment system that is password-protected for storing money and future transactions.

A digital wallet app has two components: Software and database components,

Software components secure the wallet’s information through end-to-end encryption and transaction between users and sellers.

Database components secure helpful information, such as shipping address, billing address and payment methods.

Let us explore certain types, ideas and the future of digital wallet apps.

Types of Digital wallets Apps by delivery technology

There are different ways in which payments are generate online in a digital wallet operating system, while sure are the classification by technology.

Closed wallets

A company builds a closed wallet for its customers to sell products and services. In this wallet, you can transact the money with only that company. They are online accounts in which money is refunded, cancelled, returned, or stored as gift cards.

For example, a company such as Walmart earns a profit on interest earned on such deposits.

Semi-closed wallets

The consumer can use semi-closed wallets to have online and offline transactions. Although having a limited coverage area, such wallets still prevail in the system.
The wallets transact in goods, services, payments of fees, or premiums. A merchant having agreements or contracts also used it with issuers to accept payments.

Open wallets

Open wallets deal with digital banking solutions. Banks or non-banking organizations issue these wallets if the bank is the partner. These wallets even perform as semi-closed wallets, as the consumer can withdraw cash at ATMs, banks, or even transfer funds. It made banking with digital wallet solution easy.

IoT wallets

IoT is a digital wallet that comprises all user information and uses it to store, send and receive payments on blockchain technology by any IoT-enabled device. It can be accessed from any device such as watches, computers or tablets.

Crypto wallets

A cryptocurrency is an electronic money that has won the glory of electronic money. It is a virtual currency that hands can’t touch unless of an electronic wallet.

For example, bitcoin is stored in a blockchain network rather than a crypto wallet. A Crypto wallet comprises Desktop Wallet, Hardware Wallet, Online Digital Wallet, Mobile Digital Wallet, and Paper Wallet.

NFC Technology

Near Field, Communications lies between close devices such as credit cards or smartphones. It enables contactless payment via Smartphone, which comprises Samsung Pay, Android Pay and Apple Pay.

QR Code

It is cloud base technology that has made purchases and payments easy just by a mobile gadget everywhere, online or offline, even in any retail shop.

Digital Delivery Technology

These digital payments work for goods and services on the Internet. The applications such as Alipay, PayPal and Amazon Pay work in rare conditions.

SMS based payments

These payments use SMS commands to confirm costs in P2P and C2B real-world transactions. Some examples are Mobile Money, Orange Money and Tigo. They have the highest security but are less chosen to use.

Unique Features for the Digital Wallet Solution

The Digital wallet app uses card-based payments, and the user has to link a credit card to the app. Some unique Features for the Digital Wallet Solution are listed below.

Ease in payment

The user can now pay quickly at any online store through the online digital app. Payment by ATM cards is less used as it requires a PIN, CVV code, etc.

Security

The digital wallet solution is entirely encrypt, making it less suspicious of prying eyes. However, in case of any technical issue occurs, a consumer should surely know where the money is gone.

The refunds are available on the mobile wallet app in case of failed payment, making stakeholders less worried.

High-speed transaction

Bank transfer took several hours and many business days. On the other hand, transactions perform with electronic money are done in minutes.

Some of the unique ideas that should be considered in the digital wallet app

Many digital wallet apps are gaining popularity. A wallet app that provides maximum results should be beneficial.

Proper Usage

The mobile and desktop functions for payment procedures should be similar. Digital wallet features exist in both versions.

Security

People fear losing confidential information, while if a digital wallet app is develop keeping in mind several manipulations that will protect users’ information, there will be no reason to doubt it. PINs and Password enabling are the best ways to enhance security aspects.

Tokenization

Tokenization allows the security of e-wallets using a reliable data encryption system. A token is a crypto key with no financial information, as it stores the original report in an encrypted cloud database.

Biometric

Biometrics records the physical features of a person who is, of course, different from the other. The innovative device has striking features such as facial, fingerprint and eye scanning.

Future of Digital wallet app

It is said that there will be a time when humans completely forget what paper money is. These believers come in second place, while bank cards have more popularity. Internet banking takes third place. The provider of e-payment services is focusing more on satisfying public demands.

  • They will try to update resources that will make more innovative technologies.
  • The security will increase, which will receive more attention from ordinary people.
  • Expanding the outlets of mobile e-wallet payments that will be as common as bank cards.
  • It would focus on the user experience, which would help maximize efforts to manage the e-wallet app more efficiently.

Conclusion

The emerging trend of digital wallets app has enabled multitasking and not just payments. Users can make purchases, pay bills, pre-paid recharges, book travel tickets or order food online.

It covered the protection on both sides, whether it’s buyer or seller. As a result, consumers are getting fast and secure transactions without queuing up in billing lines. The future is digital payments!