A digital wallet can be referred to as an electronic device that allows making electronic commerce transactions. It can help an individual in buying stuffs online, synchronizing account credentials and so on. It requires three main components to function. It authenticates the consumers through the use of digital certificates or other encryption methods, stores and transfers value and secure the payment process from consumer to merchant. Those are the electronic system, operating software, and an electronic device. The electronic device usually refers to a mobile phone in which mobile phone, loyalty cards, credit cards etc can be stored for use. It reduces the chances of lost of important documents unlike physical wallets. Digital wallets are also called wallet mobiles.
Digital wallets work through apps in smart phones. Digital wallets have already gained huge popularity in Japan and now the other parts of the globe are targeting it enthusiastically. Google has marketed its product Google wallet, which is becoming very popular now.
Digital wallet is very advantageous for ecommerce sites as it can as it requires just a simple tap on your smart phone. Digital wallet has been used to make transactions around $600 billion globally and it is projected to grow. Marketing executives are supposed to target digital wallet as it will ensure a hassle free transaction in no time and they will be able to find a lot of time for their next sales. Digital wallet does not depend on any locality to function as it is quite capable of working in any global location. Digital wallet provides the consumers with the privilege of transferring their information secretly and securely during online transactions in ecommerce sites. It helps in the growth of the business of the manufacturers. However, people feel frustrated to fill the online forms during online shopping. Marketing executives are well aware of this fact and they are clever enough not to lose business by making consumers feel frustrated. So they have started emphasizing on the use of digital wallets. This approach of payment or transaction provides an option for better usability and more utility any time for the customer.
The users also do not need to fill the form or give any further details in an online shopping site if they have done it once. As people get very less time for shopping, they prefer online shopping. They will be glad if they do not have to spend time on providing the same details every now and then. This makes them stick to a particular merchant. Transaction through digital wallet is also safe as their private information is encrypted by a private software code and it also helps merchants by providing protection against fraud.
Digital wallets are also available free of cost so everyone can avail one. As this provides a huge amount of benefits to both merchant and consumers, marketing executives would try to persuade people to go for it anyways in coming days.
