E-wallets are very popular these days! All a user needs to do is add money to his\her wallet, scan a QR code at a POS or available merchant, and complete the transaction. Instead of hard cash currencies, e-wallets use digital money for any type of transaction.
However, it should be noted that not all e-wallets allow users to make payments at any store. As a result, in this blog, we will learn about the various types of e-wallets, their meaning, and much more!
What is an e-Wallet?
The letter ‘E’ in e-wallet stands for electronic; thus, e-wallet refers to an electronic wallet. An e-wallet, also known as a digital wallet, enables users to conduct transactions with ease. These wallets can be used for simple transactions both online and in stores.
- e-wallets offer the ease to make swift payments online or at physical stores
- These wallets can be used to purchase train/flight tickets, pay electricity bills, reserve gas cylinders, pay school fees, complete mobile recharge transactions, and much more
- To begin using the e-wallets, add money into them from any linked bank account or from your credit and debit cards
- These wallets are secure and can be used for minor to major transactions
- To complete digital wallet transactions, one must have a smartphone, a payment app such as Paytm, and an internet connection
What Are the Different Types of E-Wallets?
There are various types of e-wallets that serve different purposes depending on the nature of the business and the end-users. The following are the types of e-wallets offered by issuers to their end-users to perform specific tasks:
- A closed wallet enables users to make payments via an app or website.
- They are typically created by businesses that sell products or services to their customers.
- Users of a closed wallet can only use the stored funds to complete a transaction with the wallet’s issuer.
- If a transaction is cancelled or a refund is issued, the entire amount is stored in the wallet.
- A semi-closed wallet allows users to easily make transactions at merchants and locations that are listed.
- Semi-closed wallets have a limited coverage area.
- To accept payment from the wallet, merchants must accept the contract or agreement with the issuer.
- Banks provide open wallets
- Users with open wallets can use them for any type of transaction
- Open wallets allow you to easily transfer funds
- Payments can be made both online and in-store at any time
- The open e-wallets service provider allows users to conduct transactions from anywhere in the world; however, both the sender and the receiver must have accounts on the same application
- Users’ public and private keys are stored in cryptocurrency wallets
- The keys could be cryptocurrency ownership certificates
- Hardware wallets, also known as cold wallets, add an extra layer of security and safety
- A USB stick can be used to operate wallets offline
- These wallets can be used to make cryptocurrency payments
- IoT is an abbreviation for the Internet of Things. These are installed in watches, jackets, wristbands or other wallet enabled devices like such as smart car computers, smart refrigerators, and others
- IoT wallets work with e-money and virtual currencies
What Are the Advantages of e-Wallets and Digital Wallets?
Digital wallets are widely used for everyday transactions, with the added benefit of transferring funds from one wallet holder to another. Paytm, one of the most well-known payment platforms is known for changing people’s spending habits. The brand has integrated a digital wallet into its app, allowing users to make transactions of any amount (t & c) at any time. Paytm digital wallet is used monthly by over 30 million active users on 333 million registered users due to the ease and flexibility of making transactions. The following are some of the advantages of using a Paytm wallet:
- Users can use a Paytm wallet to make payments from anywhere in the country at any time
- To conduct transactions, a user must first add the required amount to his or her wallet
- A low or minimum balance in the wallet incurs no penalty
- The Paytm wallet protects the user’s information as well as the transactions made through it
- Paytm Wallet can be used by scanning the QR code available at POS or from the merchant, or by adding a mobile number to complete the transaction
- There are no limitations to using the digital wallet. It is available for use for as long as the user requires it
- The transactions are processed in seconds by the Paytm wallet
- Paytm payment wallet can be used to make transactions ranging from a small amount to a large amount
- There is no charge for using a Paytm digital wallet
There are various types of digital wallets or e-wallets that serve specific purposes and are thus designed accordingly. Digital wallets, also known as e-wallets, are typically integrated into payment applications; however, they can also be downloaded directly as e-wallets from an authorised platform. It is always recommended to download the payment application or e-wallet from the authorised platform, as well as from the Google Play Store or the Apple App Store. It is strongly advised never to download an e-wallet or payment wallet from a third-party app or website.