The world is being ruled by money and technology. That is why in this technologically growing world it is vital to technologically upgrade the finance industry. But the industry has evolved to a huge extent over the years and is now a combination of several technological incorporations. Amongst others, the digital wallet is ruling the industry at the current situation as it can securely store users’ payment information and passwords for numerous payment methods and websites. It helps complete purchases and transactions faster and easier. The introduction of digital wallets is changing the billing landscape, both online and off. A host of digital currencies with their own software have changed the customer shopping behaviour and their interaction with the merchants.
Built of two major components, a software application and an information storage system, the digital wallet has is like a miracle to this fast world. The software is developed to keep control over the security, encryption and the actual transaction. Moreover, it provides a user interface as well as safe and secure transactional which is compatible with most e-commerce websites. The information storage system stores the database containing user input information such as billing address, shipping address and payment methods.
Digital wallet is primarily used in mobile payment to enable customers to pay online for purchases with their smart devices. This digital financial landscape has now several applications that can be utilized for making transactions in any physical store which are hosted by a financial institution in the cloud. The system provides payment and contact information with the help of card, account and shipping information of the user when shopping online, which can use to expedite the billing process.
E-commerce has achieved a great benefit with the development of digital wallets as it has made transactions by the customers very easy.
Simply by linking bank accounts of individual users with their digital wallet, user credentials are securely stored and verified during transactions. This helps the business owners with the authentication process of the users. It can store complete user information such as credentials, transaction history and personal details so that the user does not have to feed the information repeatedly. To highlight a few benefits out of many, it enables the user to create a stronger password without worrying about remembering them later. A digital wallet can also be used to store loyalty card information and digital coupons.
Some companies have developed their own digital wallets, called merchant wallets, to help them keep user information at the ready for simple transactions. Innovation in this technology is in progress in an attempt to minimize the interference that occurs from different platforms competing for customers with their digital wallet products. Also, to provide more secure, efficient and with added functionalities server-side digital wallets will soon be introduced in the market.