Digital Wallets uses , advantages and disadvantages
Digital Wallet is the software which resides on the buyer’s computer and it holds the digital cash & the digital certificate with the digital signature , as well as billing , shipping and the payment information for online transactions , It is also called the electronic wallet .
The digital wallet refers to the electronic device which allows you to make the electronic commerce transactions , It can include purchasing items on-line with the computer or using the smartphone to purchase something at the store .
Your bank account can be linked to the digital wallet , You might have your driver’s license , health card , and the other ID documents stored on the phone , The credentials can be passed to the merchant’s terminal wirelessly via near field communication (NFC) .
Digital Wallet advantages
Digital Wallets facilitate the commercial transactions by storing the consumer’s credit card , shipping address and the other payment data , They are being made not just for the basic financial transactions but to also authenticate the holder’s credentials mobiles .
Online shoppers abandon their orders due to the frustration in filling in the forms , The digital wallet combats this problem by giving the users the option to transfer their information securely and accurately , Digital wallet is simplified approach to complete the transactions results in better usability and more utility for the customer .
The digital Wallets can increase the transaction security since the wallet does not pass the payment card details to the website , It is the feature of online payment gateways , And Digital Wallet is safer than using the credit card .
Digital Wallets are convenient , They eliminate the need to carry the physical wallets , Many common stores have begun utilizing the mobile wallet services , You can keep track of all of your bank accounts and credit cards from one place , instead of having to carry the wallet full of cards and keep track of each one individually .
The thieves can run up your tab at the stores all over the place before you even realize it is missing , With the mobile wallet your credit card numbers are encrypted in the cloud , You are able to lock down everything remotely and if you lose your phone , you will not have to request new cards with new numbers .
While your data is vulnerable to the breaches , You will not need to carry the physical credit card leaves it less exposed to the physical card theft and the information-stealing devices like card skimmers , And the exchange of money through the mobile wallet will remove the need to carry cash money .
Digital Wallet presents lower costs , Employing the use of digital wallets removes the need for the intermediaries , in the variety of forms , The purchases in-store may no longer require the cashier because the purchasing process becomes as simple as the tap or scan of the mobile device
Digital Wallets offer competitive advantage , The digital wallet applications provide more convenient transaction processing method for the customers , giving the businesses which employ this technology the competitive edge in the market .
The traditional cash-only businesses such as the craft fairs and the flea markets can accept the debit and credit cards , This opens up the entirely new aspect to the payment methods in large markets , introducing many business opportunities and greater potential revenue .
You can get through the purchase in mere seconds with the simple tap or scan of your mobile device , The purchasing becomes quicker and easier , leading to a greater sense of satisfaction , with faster transactions , checkout lines within stores become much shorter .
Digital Wallet is easy to use , Just one click to pay and you do not need to fill in card numbers and the passwords every time , You can link the credit cards , the debit cards and the bank accounts and pay immediately without entering the details each time .
Digital Wallet offers easy of access , You do not need to use the physical wallet , Mobile wallets allow you to store your documents digitally like your Driving License , Pan Card , etc , It will be possible to make the instant payments , And we can exchange and transfer the money anytime .
There will be synchronization of data from multiple platforms , The bank accounts , the credit and debit cards , the mobile accounts and the bills will be interconnected and help in better management , It is like everything is under one roof .
Digital Wallets Disadvantages
The digital Wallets are not widely available yet , You need to make purchases from the retailer with a POS terminal to use your mobile device’s near-field communication (NFC) , They are not widely used yet , And not all smartphones have NFC capabilities yet .
When you lose your phone , You will lose your wallet , when the battery dies , You will lose your wallet , If you depend on your smartphone for calling and paying for your purchases , You can only pay as good as your last charge .
Digital Wallets have still some safety concerns , There are concerns about how the hackers might get a hold of your information with NFC since you are transmitting your data wirelessly .
The mobile network connectivity is the biggest impediment , The network problems and reliable and the fast internet connectivity is not available in most of the developing countries .
There are more than connectivity , The security issues are at the forefront nowadays , The people are always under the fear of misuse of their money by the hackers and the frauds , And they always feel safer to have cash .
The initial monetary investment for building functional digital wallet application is quite large , It needs the initial development of the software and the continual maintenance , It requires updates and fixes that associated with it , So , It leads to further increase in costs.
The digital wallets information are stored on the cloud of the business servers , So , the risk of the system malfunction or shut down is always present , So , businesses will not be able to process the payments or they will become increasingly slow due to high traffic in the servers .
The companies must ensure that their customers’ information is encrypted and well protected , This is hurdle that the companies must face , So , They must develop the security systems to avoid the potential security issues .