All about e-Wallet
Virtual payment has made a lot of advancement over the past few years. It has enabled the customer to easily make contactless payment. The payments are made through the EPS system.
Let’s read what EPS is!
What is EPS?
EPS stands for Electronic Payment System. It allows customers to make payment for goods and services online. The main aim of EPS is to
- Increase efficiency
- Easy to use
- Enhance users convenience, and
- Improve security.
What is an e-Wallet?
An e-Wallet is also specified as a Digital Wallet. It is a device that enables one to perform electronic commerce transactions in a quick, and easy way. The e-Wallet evolves into a service that offers an adequate way for internet users to use and store online shopping information.
The e-Wallet can store vital data such as your driving license, passwords, email contacts, etc. By using an e-Wallet you can make transactions without intermediaries at lower cost.
What are the features of an e-Wallet?
The features of an e-Wallet are:
- Accessible across the world.
- Works with all types of scans (RFID, Barcode, Strip)
- Unlimited use of cards.
- Logical system security- Firewall, encrypted, etc.
- All information of ID in one card
- Can be filled again
- Consist various features of card
- Store and read current balance
- Provide user authentication
- No way to get duplicated
What is the need of an e-Wallet?
An e-Wallet enables customers to smoothly fill out the order with the information of every purchased item. The main aim of e-Wallet is to provide an easier way of paperless money transactions.
For instance, a customer goes to shop and forgot to carry enough cash. He/she can use an e-wallet account to make secure payments.
What are the benefits of an e-Wallet?
The benefits of an e-Wallet are-
- Time saving
- Attractive discounts
- Lower costs
- Record expenditure
What are the kinds of e-Wallet?
There are three kinds of e-Wallets. They are:
1. Open Wallet
It is a type of e-wallet issued by a bank partner or bank itself to make any kind of transaction.
2. Semi-closed Wallet
The Semi-closed wallet is a type of wallet that is used to make transactions for specific merchants.
3. Closed Wallet
It is a kind of e-wallet produced by companies. This wallet is used to transfer funds between wallet issuer and wallet user.
What are the technologies currently used in Digital Wallets?
There are three technologies that are currently used in e-Wallets. They are
1. Near Field Communications (NFC)
NFC is a type of technology that enables the two smart devices to get connected. Further, easily transfer information with the use of electromagnetic signals. The two smart devices should be within the proximity of 4 cm. This will allow the devices to carry out contactless transactions.
2. QR Codes
A matrix barcode that collects information is a Quick Response Codes (QR Codes). The customer uses the device camera to scan the barcode and carry out payment.
3. Magnetic Secure Transactions (MST)
MST is an advanced technology that securely stores data on a magnetic strip. It generates magnetic signals similar to the signals of traditional card payment. The MST-enabled devices work with almost all types of readers that don’t require inserting a card.
What are the uses of Digital/ e-Wallet?
The e-Wallet is used for the following purpose-
- Utility Payments
- Bill Payments
- Online grocery store Payments
- Book tickets for Flight, Bus, Train, etc.
- Transaction of funds
- Purchase subscriptions
- Mobile Recharge, etc.
How to use an e-Wallet?
1. For merchant
- Install an e-Wallet app on your device.
- Sign In with the required information.
- Make self-declaration as a merchant.
- At last, start accepting payments
2. For customer
- Install an e-Wallet app on your device.
- Sign up with the required information.
- Add money to the wallet with a credit/ debit card.
- Finally, shop online with e-wallet payment.
Is it safe to use an e-Wallet for payment?
The e-Wallet system has features like two-factor authorization and PIN that provides security. It also uses
Encryption technology to store the personal information of the users. Unlike credit and cash payments, e-Wallet provides much better security.
E-Wallet is the present as well as the future. It provides the facility to make a secure, instant and contactless payments in the fast-paced world. The customers can easily pay for services by attaching their bank account with an e-wallet account.
A customer should choose an e-Wallet service with secure encryption protocols and advanced features.