What is a Digital Wallet? What are the Popular Digital Wallets?

The Digital World and the Digital Wallet

These days, have you noticed both these terms going hand-in-hand? And of course, pandemic taught us how to deal with virtual presence? Well, to those who are still uncertain about the word “digital wallet,” here’s the definition for you!

Digital Wallet, also known as an e-wallet, is just like a physical wallet, but one can only use it on an electronic device. Digital wallets are applications that allow individuals and businesses to conduct digital transactions. It has eliminated the game of real cash.

Now, if you are at a restaurant, you don’t have to pay in cash. You can use your digital wallet and make the payment. It is just a click away!

Digital wallet payments are safe and secure. They are transparent too. The digital wallets store user’s payment information, making it easy to conduct online payments. Users can also use the digital wallet on any e-commerce site and complete their transactions.

Digital wallets are flexible. They are popularly used on smartphones and tablets. Alongside they can be used on desktops. Users can quickly download the specific applications created by banks or trusted third parties to get started with the digital wallets.

Types of Digital Wallets

Closed Wallet

Companies develop closed wallets to enable internal transactions between them and their customers. Thus, customers can use these closed wallets to make payments with only the respective wallet issuer. Any kind of refunds, cancellations, or returns are stored in the wallets directly. For instance, Amazon Pay

Semi-Closed Wallet

Semi-closed wallets allow users to conduct transactions with a listed number of merchants and locations. That means the user can complete transactions at a restricted length or area. Interestingly, the semi-closed wallets accept both online and offline buying. On the other hand, merchants need to sign an agreement or a contract with the issuer to accept or conduct digital payments from mobile wallets

Open Wallet

Financial institutions partner with banks to develop open wallets. Users can use open wallets to conduct various transactions — to buy goods and services, transfer funds, etc. Besides, it also allows withdrawing cash at ATMs or banks.

Here are the top Digital Wallets that have created a significant impact in the digital economy.

PayPal

PayPal is one of the popular and largest known digital wallets in the world. It allows users to make online payments, transfer money within a single account. It enables safe and secure online purchases.

The PayPal e-wallet is friendly to use for both individuals and businesses. Numerous online stores accept PayPal as the standard and safe payment application. The digital wallet has an easy setup and customization options for vendors and purchasers. It offers end-to-end encryption for every transaction.

Apple Pay

Apple Pay digital wallet is exclusively designed for iPhone, iPad, and Apple watches. It is only compatible with Apple devices. Apple Pay is well streamlined and safe for both online and in-store purchases. The digital wallet offers a seamless online payment experience. The major disadvantage is that not all merchants support and accept payment transactions from Apple Pay.

Google Pay

Google Pay is flexible, convenient, and secure. It enables users to make transactions on the app and the website using both debit and credit card information saved on it. In addition to online transactions, the Google Pay application allows users to purchase movie tickets, pursue shopping, pay bills, etc. The digital wallet also offers exciting discounts and coupons for the users.

PayCircle: Into the Competitive Landscape

Soon, we will see various digital wallet applications coming into the picture. PayCircle is going to be one among them!

PayCircle, the global DeFi wallet, is all set to launch with distinctive features. The application stands out, offering global Fiat and digital asset transaction services to individuals and businesses. The application allows users to custody, send, and receive multi-currency Fiat (USD/AUD/CAD/EUR/JPY) and digital assets (BTC, ETH, ERC20 based tokens, and stable coins like USDT) to anyone, anywhere, 24X7. The PayCircle application had successfully completed the Proof-of-Concept (POC) phase and will go live soon after the ongoing Pilot phase. The blockchain-based payment application combines vibrant features such as real-time payment settlement and transaction traceability.

PayCircle offers technology-driven solutions to industry leaders, helping them streamline payments, transaction settlements, and asset management globally.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store