E-wallet refers to a type of electronic card, which is used for transactions made online through a computer or a smartphone. It�s used to conduct similar transactions as a credit or debit card. An E-wallet is linked with the individual’s bank account facilitate conducting given transactions. E-wallet is a type of pre-paid account protected with a password used to conduct an online transaction such as payments for groceries, online purchases, payment of fees and flight tickets.
Components of an E-Wallet
E-wallet is comprised of two components, software and information. The software component enables storage of personal information and facilitates the security and encryption of the data. The information component provides a database of details provided by the user, including information such as name, shipping address, payment method, amount, card details, etc.
Setting up an E-Wallet Account
When setting up an E-wallet account, the user installs the software on their device, entering the required relevant information. After performing a transaction online such as shopping, booking a flight ticket, the E-wallet enables to fill in automatically the user’s information on the payment form and activating payment using a pre-configured password. The information is stored for future order forms of similar services on the given website. Money plate allows conducting of E-wallet transactions on your account through the following
Mobile wallets
These mobile phone apps link your bank account to the mobile phone.� They allow for transactions, like shopping online and offline, payment of goods and services or transactions through ATM. However, their usage depends on the type of wallet and menu installed.
Electronic Wallets
This involves the use of an electronic device that allows an individual to perform electronic transactions such as purchasing items online with a computer or using a tablet, iPad to purchase something at an online store.
Types of E-Wallets
Closed Wallet
These are wallets, which are issued by a given company to a consumer to facilitate the purchase of goods and services exclusively from that company for instance companies like Makemytrip.com, that issue closed wallets to their consumers. Closed wallets allow for crediting of cash to the wallet in case of a refund due to cancellation or return of a product or service for future use. Some companies earn interests on deposits made on closed E-wallets.
Semi-Closed Wallet
Semi-closed wallets are redeemable at identified merchant locations that have a contract with the issuer to accept the payment instrument. They don�t allow for cash withdrawal or redemption by the holder. Bank approval is required for one to own and operate a semi-closed wallet. They help to transact services both online and offline such as buying goods and services, financial services, payment of fees, premiums. Funds are deposited in an escrow account with a partner bank and interests charged shared between the payment company and the bank at an agreed rate.
Open Wallet
Open wallets include Mastercard, etc. that are used to purchase of goods and services. They also allow for cash withdrawal at ATMs, Merchant Local Locations, and automated business correspondents.
