Paying digitally for a service or product has been considered one the safest method of making payment. However, after the launch of the digital wallet, there is a definite shift towards increased use of this mode of payment, especially for online payments. For example while getting your Vodafone online recharge done,you can use the credit card, debit card or bank transfer for paying for the particular recharge plan. The latest technology that is gaining prominence with end users gradually is the digital wallet.
The e-wallet or the digital wallet is similar in its functioning to that of a physical wallet. It is a kind of software that transforms your smart phone into a monetary instrument. It is in fact, a pre-paid account that can be linked to one’s bank account. The e-wallet needs to be credited with money for carrying out any kind of transaction. A user needs to register with the service provider of the e-wallet service for his login id and password to be able to use it for future transactions.
M-Pesa of Vodafone is a type of e-wallet service that top cellular operator Vodafone has launched for its subscribers in India. It is quite simple to operate. Vodafone subscribers need to register with the company for availing the service. Registered users can then load the software with money and use it to send money to any of bank account or mobile number online. They can also use the same to carry out Vodafone online recharge, pay for Vodafone postpaid bills, pay DTH bills and even withdraw money when required.At the same time, top retailers of the country like Paytm, MobiKwik and PhonePe too have their own e-wallets, some of which can be used in the physical world too. As technology progresses, some of the retailer e-wallets can be used even when the internet connection is weak or non-existent. Since retailer Apps and sites facilitate plenty of online activities and services, like Vodafone online recharge, shopping online, booking tickets online, paying of utility billsetc, the respective mobile wallet helps indulge in lots of online financial transactions at one go.
Though many view the Digital wallet as a bit unsafe when compared to the use of credit and debit cards, the truth however is that it is much safer, faster and more secure than other conventional methods of payment. One of the reasons for the slow rate of conversion and acceptance of the e-wallet or mobile wallet is that for years together customers have been relying on the traditional card system for making payments and hence the reluctance. The important fact to note here is that since the transfer of money from your bank account to the e-wallet account is done only after the registered user authorises the same, it makes the electronic wallet safer. Not only that when you use the mobile wallet, the system not only seeks authentication of the user, it also monitors and uses data encryption technology to secure your sensitive data.