A digital wallet has several functions, such as making credit card payments. The digital wallet, also known as a mobile wallet or e-wallet, can store the debit/credit card information and can be linked to bank accounts. The digital payment infrastructure is established in a few countries. In Sweden, only two percent of their citizens use cash transactions. In the UK, there are now more debit card transactions done with the use of digital wallets, fast making cash transactions a thing of the past.
The power to swipe
The power of having a credit line is based on trust. Credit cards give us the power to swipe to purchase goods and services that we do not have to pay for right away. A credit card has information such as our name, account number, and a code in the back. It also has a magnetic strip for us to use when swiping. The numbers are keyed into forms as these are required for credit card payment processing. We authorize some of these payments by the use of the three-digit code in the back.
Risk of fraudulent transactions
The problem of owning a physical card, be it for debit or credit, is that the information on it might be obtained and used by those who want to conduct fraudulent transactions. These numbers can be keyed in for online credit card payments. If the physical card is stolen, it may be used to swipe for purchases, and even for money to be cashed out with the use of an ATM.
The sensitive information stored in the digital wallet is encrypted. When a transaction is made, a random character string is sent for the processing of the transaction. This security measure and more make using digital wallets much safer than physical cards.
Storing of information
Digital wallets are not virtual cards. These stores the payment information of credit cards, virtual cards, bank accounts, and prepaid/debit cards for ease of use when making a transaction. An e-wallet provides the method of payment. With a few taps or by keying in within apps the details, the payments can be made.
The contents count
E-wallets are just like real wallets, as what is used to make the financial transaction is the contents. What the contents are would be cash, credit cards, debit cards, bank ATMs, and more. If what is in the e-wallet is empty like a bank account or the credit card has reached the limit, no payment processing will occur.
The digital payment infrastructure makes e-wallets necessary. Every day, all over the world, there are billions of payment transactions made, and using a digital wallet saves everybody a lot of time.
While you should always pay attention to protect your personal information, major digital wallet apps are proved to be safe. So, step into the future with confidence and enjoy the benefits!