A digital wallet or E-Wallet has mainly two components: software and information.
The software component stores the customer’s personal information and provides security and encryption of data. The information component, in return, maintains a database of the data provided by the consumer, which consists of a list of details like names, shipping address, payment methods, and debit/credit details.
To set up an E-wallet, the consumer first has to install the application on its device. After this, it is required to complete the registration procedure. Once the setup has complete, the individual can add the money into the E-wallet the user no longer needs to enter online banking/debit card/credit card details on different websites.
You can also store the payment methods online and load money onto the wallet. One key benefit of loading the money is that whenever the consumer transacts using the wallet, the amount directly deducts from the balance present in the wallet.
E-wallets or also known as mobile wallets, work by using Near-Field Communications (NFC)-enabled technology or QR code technology. for security reasons, this technology digitally stores information related to payments in an encoded format. Besides this, the other information it stores are store coupons, loyalty programs, and other personal identity-related information.