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What Is a Digital Wallet?

The Internet has definitely revolutionized the way we live our lives, and online shopping is perhaps one of the most popular activities today. With the time that the average person spends on the Internet, this is quite understandable. Of course, there is the convenience of merely clicking and scrolling as well.

When you shop online, you have various options when it comes to paying for your purchases. Oftentimes, people use their credit cards to pay for online purchases. While this is also convenient, there is always the fear of a security breach. What if someone, somehow, gets hold of your credit card details? Isn’t there a “safer” way to go about your online shopping activities?

That is where the concept of a digital wallet comes into the picture. A digital wallet is basically software which allows you to make payments online without having to enter your credit card details each time you make a purchase. What happens is that your payment details are stored in a secure place online and when you need to make a payment, you simply have to access this digital wallet without having to key in the details again. A digital wallet is also called an e-wallet.

There are many digital wallet programs being used today, PayPal being the most prevalent. To use PayPal, you simply have to create and verify your own account. You can then fund your PayPal account via your bank or credit card. Anytime that you want to buy something online, you simply have to enter your PayPal details to make the payment - provided the merchant accepts PayPal as a mode of payment.

Featured in Finance