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.