Digital Wallet
A Digital Wallet/e-wallet refers to an electronic device that allows an individual to make electronic commerce transactions e.g. purchasing items online /at stores, making payments to clients, bill payments, etc.
Digital Wallets are being made not just for basic financial transactions but also to authenticate the holder’s credentials. They may also have user’s ID documents, driving license, mark sheets, certificates, healthcards, etc.
It is important for a user to know what services are provided by the digital wallet he/she is using. In India, there are three types of wallets permitted :
A closed wallet is issued by a company to a consumer for buying goods and services exclusively from that company. e-wallets of Flipkart, snapdeal, makemytrip, redbus are some of the examples of the companies using closed wallets.
2. Semi-Closed Wallet :
A semi-closed wallet can be used to buy goods and services, including financial services, at clearly identified merchant locations or establishments, which have a specific contract with the issuer to accept the payment instruments, but this still do not permit cash withdrawal or redemption by holder. Eg. Paytm, PayU, Ola money, paytm, freecharge, mobikwik,oxygen wallet, citrus pay, airtel money, etc have PPI(to know more about PPI - Prepaid Payment
Instruments in India) license for opening and using Semi Closed wallets.
3. Open Wallet :
Open wallets can be used for purchase of goods and services including financial services. It can also be used for funds transfer or POS terminals that accepts cards and also for cash
withdrawal from ATM. Eg. MasterCard, VISA, RuPay, etc provide open wallet services to issuers(Banks).
At present, digital wallets do not provide interest on money stored in their wallets but, attractive cashbacks are given to users.
Today, there are many digital wallet apps are available that store documents and important credentials. Evernote is example of such type.
Recently, an app Digilocker is launched by the Government of India to store documents digitally and provide a platform for issuance and verification of documents and certificates in a digital way thus eliminating the use of physical documents. You can sign up and have
your own digilocker account here www.digilocker.gov.in
Digital wallets should not be confused with Unified Payment Interface(UPI) system that powers multiple bank accounts (of participating banks), several banking services features like fund transfer (P2P), and merchant payments in a single mobile application.[2] UPI was launched by National Payments Corporation of India with Reserve Bank of India's (RBI) vision of migrating towards a 'less-cash' and more digital society. UPI has built on the Immediate Payment Service(IMPS) platform.
Digital Wallets are being made not just for basic financial transactions but also to authenticate the holder’s credentials. They may also have user’s ID documents, driving license, mark sheets, certificates, healthcards, etc.
It is important for a user to know what services are provided by the digital wallet he/she is using. In India, there are three types of wallets permitted :
1. Closed Wallet :
A closed wallet is issued by a company to a consumer for buying goods and services exclusively from that company. e-wallets of Flipkart, snapdeal, makemytrip, redbus are some of the examples of the companies using closed wallets.
2. Semi-Closed Wallet :
A semi-closed wallet can be used to buy goods and services, including financial services, at clearly identified merchant locations or establishments, which have a specific contract with the issuer to accept the payment instruments, but this still do not permit cash withdrawal or redemption by holder. Eg. Paytm, PayU, Ola money, paytm, freecharge, mobikwik,oxygen wallet, citrus pay, airtel money, etc have PPI(to know more about PPI - Prepaid Payment
Instruments in India) license for opening and using Semi Closed wallets.
3. Open Wallet :
Open wallets can be used for purchase of goods and services including financial services. It can also be used for funds transfer or POS terminals that accepts cards and also for cash
withdrawal from ATM. Eg. MasterCard, VISA, RuPay, etc provide open wallet services to issuers(Banks).
At present, digital wallets do not provide interest on money stored in their wallets but, attractive cashbacks are given to users.
Today, there are many digital wallet apps are available that store documents and important credentials. Evernote is example of such type.
Recently, an app Digilocker is launched by the Government of India to store documents digitally and provide a platform for issuance and verification of documents and certificates in a digital way thus eliminating the use of physical documents. You can sign up and have
your own digilocker account here www.digilocker.gov.in
Digital wallets should not be confused with Unified Payment Interface(UPI) system that powers multiple bank accounts (of participating banks), several banking services features like fund transfer (P2P), and merchant payments in a single mobile application.[2] UPI was launched by National Payments Corporation of India with Reserve Bank of India's (RBI) vision of migrating towards a 'less-cash' and more digital society. UPI has built on the Immediate Payment Service(IMPS) platform.
A Bitcoin wallet is a software program where Bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for every Bitcoin address that is saved in the Bitcoin wallet of the person who owns the balance.
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