An e-wallet is the same as a digital wallet. It is a virtual payment method, that is, a financial transaction via an electronic wallet in place of a physical one. It allows users to make payments without having to carry cash or credit cards.
E-wallets or digital wallets are also called mobile wallets as they function via mobile apps.
Features and Benefits:
- It is secure and employs additional security measures. They have password protection, encryption, biometric authentication and two-factor authentication for advanced security
- Customers can add money to their wallets from their bank accounts through cards and net banking. They can also store data like card details and bank account details in the e-wallet app. So there is no need to fill in the same information each time
- You can add money into the wallet anytime you want, at any place and any amount you desire to add
- One can do quick transactions easily and simply. It saves time and effort once people set up a wallet by creating an account on its app
- Having an e-wallet does not require one to carry cash and so there is no fear of losing it. Customers can report any online fraud or failed payment. E-wallets record all payments and provide their unique transaction numbers
- E-wallets do not have any joining or account setting fee, nor any transaction charges. This attracts more customers and before UPI, e-wallet transfers were one of the fastest and most flexible payment options available
- Mobile/digital/e-wallet companies often award their customers with loyalty points, coupons, cashback and several offers
Uses:
Digital wallets enable customers to make electronic payments, for instance, paying from their e-wallets to a merchant’s e-wallet or bank account. So, here’s how they can use it:
- Customers can pay at online e-commerce stores, offline shops, in-app, etc.
- They can recharge their mobile, buy railway/bus/flight tickets, book movies/ events/shows, do reservations for hotels/restaurants/bars, etc.
- They can pay their bills like credit card bills, utilities like electricity, water, landline, gas pipeline and many more
- They can pay for subscriptions by enabling recurring payments. Most digital wallets allow customers to link bank accounts and enable auto-debit
- Most wallets also enable paying the rent, loan EMIs, SIPs or other such monthly payments
Digitalisation and internet penetration have aided in making digital wallets popular. It is also because the payments ecosystem is going through a shift from traditional to digital modes of payment. There is growing awareness and adoption of the same.
