For more than a decade, people have been using digital wallets. PayPal is one of the first digital wallets to offer online banking services, and it is also one of the oldest. As we approach 2020, when the worldwide epidemic strikes, online banking, and digital wallets will become key answers. Hundreds of homes were forced to use digital wallets to send and receive money as a result of the lockout.
While the world has always recognized and respected the value of digital wallets, the 2020 pandemic reminded everyone of their importance. They are popular because they are simple to use and faster than traditional banking services.
Let’s talk about digital wallets for a minute.
A mobile wallet, often known as an e-wallet, is a type of digital wallet. It allows the user to transact without having to carry cash, checks, or credit cards. Simply save your payment details on a smart device such as your smartphone. Because payment information is private, digital wallets encrypt it using a password. Going cashless is a prominent topic in the banking industry, with an increasing number of companies investing in digital wallets and similar concepts.
Another reason for its widespread adoption is that digital wallets efficiently reduce the time-consuming checkout process. Of course, a user does not need to carry a large wallet with them. They can also attach their ID documents, such as driver’s licenses and loyalty cards, to their smartphones. These days AI has overtaken the verification system even though document verification is a good security system that can help so much.
The story of how it was originated:
People utilized mobile phones to order pizza, book hotel rooms, purchase travel and movie tickets, and so on as technology advanced. Until 2003, almost 95 million mobile users have made a purchase with their handset.
Google was the first company to develop a mobile wallet in 2011. The wallet required users to pay, redeem coupons and earn loyalty points using NFC (near field communication). Despite the fact that only a few phone models could run the wallet and only a few retailers accepted payments through it, it generated a lot of buzzes.
Apple released the Passbook app in 2012, which could be used to store coupons, tickets, and boarding credentials. Passbook’s only flaw was that it wasn’t designed for mobile payments. Apple Pay was launched in the United States two years later, and it soon gained traction in the United Kingdom and China. Google debuted Android Pay in 2015, and Samsung followed suit with their Pay app the following year.
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How does digital wallet function?
Although digital wallet software is best installed on a smartphone, it can also be used on a PC, tablet, or another similar device. Because consumers can easily carry their phones everywhere, the smartphone application version of a digital wallet is the most extensively utilized.
You can use your smartphone to download the digital wallet app and then finish the KYC process by submitting accurate information. Make sure the third party you’re giving your information to is trustworthy before you offer it to them. You can use your digital wallet to pay at a point of sale system that accepts payment from your vendor wallet once you’ve set up your account. Magnetic Secure Transmission technology is available in some POS systems. While contactless purchases may be difficult to identify, Magnetic Secure Transmission payments are supported by most modern POS systems.
Where this walled can be used?
There are several methods to put your wallet to good use, and the following are three of them:
You can pay with your digital wallet at any store that has a POS system that accepts it.
Digital wallets are accepted by many online stores and eCommerce websites. Instead of typing in your card information each time, you can use a digital wallet as a payment mechanism throughout the checkout process.
You can pay for rides or food delivery with your digital wallet app.
Contactless cash withdrawals from ATMs are currently available from several banks. Simply add your debit card to the digital wallet, choose it, and then hold your phone above the contactless icon to complete the transaction.
Pros of digital wallets:
The most obvious advantage of a digital wallet is the ease with which you can make a payment. Every transaction, in the vast majority of circumstances, results in an immediate money transfer. As soon as the money is received, the business can process and ship your order. Because the user-submitted their information in the digital wallet during the onboarding process, they do not need to enter it again. For increased security, some digital wallets require biometrics in addition to standard passwords.
The security Identity verification promises in the digital wallets:
As the number of people using digital wallets expands, there is a pressing need to improve their security. Customers with digital wallet services are filtered using KYC by banks and other financial institutions throughout the onboarding process. It necessitates the customer’s ID verification using the documents they submit. In this case, precise identity verification is critical in preventing identity theft and other system security breaches. Document verification service is a must for businesses, your documents can be sued to verify your identity. The license can be checked if it’s fake or not.
For digital wallets, identity verification is a useful tool during remote user onboarding. The digital wallet is enhanced with security features including biometric technology to preserve your data after you authenticate your identity.
We’re working on AI-based ID verification technology for enterprises and financial institutions that offer digital wallets and related services. We’re working hard to improve and upgrade our technology so that your digital wallet can withstand fraudulent attempts