[Term of the Day]:Digital Wallet

[Term of the Day]:Digital Wallet

Term of the Day 
 

Digital Wallet 

 

Definition — What is Digital Wallet?



The term Digital Wallet, also known as E-Wallet, is a digital tool that enables users to make monetary transactions electronically through smartphones, smart devices, and computers. Apart from online and offline transactions, they are used to authenticate user credentials. A digital wallet can store complete user information including credentials, debit cards, transaction history, and personal details, so users need not have to carry the physical cards/cash with them. Some digital wallets allow users to store money, such as a cryptocurrency digital wallet like Coinbase. Through this, users can convert their money into cryptocurrency. Digital wallets have mainly two components, software, and information. The software component stores personal information and provides security and encryption of the data. The information component is a database of details provided by the user which includes their name, shipping address, payment method, amount to be paid, credit or debit card details, etc.

 

Digital wallets aren't new to the market, they have been around for about a decade, they are just starting to gain traction. Recent statics says prior to the start of the coronavirus pandemic, only about 28% of the world were using digital wallets, by January 2021 close to 59% of the world had begun to use them. There are numerous reasons why users might want to stop using cash/card in a post-COVID-19 world. It appears that digital wallets are now poised to revolutionize the way users pay for goods and services.