5 Things to Know About Digital Wallets

Digital Wallet

Business activities such as banking, buying, and selling, transport bookings, entertainment and events have transitioned from manual operations to a more sophisticated affair. Relying heavily on digital assets, these activities are now easily accessed from anywhere in the world through the comfort of a mobile phone. Therefore, having a digital wallet is essential for anyone who wants to carry out an online transaction today.

If you’re not used to the term, you may be asking, what is a digital wallet?

A digital wallet, also known as an e-wallet, is an online service platform that enables transactions between individuals, businesses, or organisations. It contains users’ information such as tickets and pass cards, driver’s license, IDs etc., that are needed to perform successful transactions on different online platforms.

it can be used to receive funds, make payments, and get remittances remotely. It does not require a physical bank, and it fosters financial inclusion.

Now that you know what a digital wallet is, there are 5 things you need to learn about digital wallets:

  • Requires an electronic device

In an era where gadgets such as laptops, smartphones, tablets, and smartwatches have become a major part of daily activities, tasks have been made a lot easier. With these devices, people can make purchases and other transactions without the barrier of distance. All that is required is to simply create an account with a digital wallet platform.

  • Private and Secure

Digital wallet is secure, safe, and private. It is more efficient than chip-enabled cards and swipe cards. Digital wallets conceal and store users’ information such as card numbers and details using tokenisation, which cannot be accessed by a third party. It adopts biometrics, two-factor authentication and one-time password (OTP) used in mobile banking for security checks before transactions are approved.

  • Fast, flexible, and convenient

The digital wallet enables fast transactions for purchases and transfers. It is the best way to go cashless and make payments with different payment methods. It also enables convenient transactions from anywhere worldwide. By downloading a reliable e-wallet app, anyone can access easy and convenient transactions at any place and time.

  • A digital wallet is a digital version of your physical wallet

Digital wallet stores the user’s information and funds. It stores cards like a physical wallet would. In addition, it stores information such as payment and cards, coupons and loyalty, access and keys, and IDs, bitcoins. Digital wallets are a form of digital banking that uses Near Field Communication (NFC) and Magnetic Secure Transmission (MST). Although not all retail stores accept digital wallets, it is making a wave in financial technology.

  • Digital wallets are available in varieties

The three main forms of digital wallets are:

  • Closed wallet: this is a type of digital wallet that a particular company develops for customers. Only users who are registered on a closed wallet account can make transactions through it.
  • Semi-closed Wallet: a semi-closed wallet allows transactions or payments with selected companies and locations other than the issuer company. However, there is usually a limitation on the use of the wallet for purchases from other companies.
  • Open wallet: open wallet allows users to transact with other companies in any location. It also allows users to withdraw and transfer funds from banks and ATMs. An open wallet is usually issued by partner banks or institutes. This is the type of wallet Ceepass Digital bank operates.

Now that you know these five things about a digital wallets, we suggest that you create one if you don’t have one already.

If you’re looking for a trusted digital platform, sign up on Ceepass Digital bank. It offers you a unique digital wallet that takes care of all your online transactions.

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