What Is an e-Wallet Payment and How Does it Work?

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E-wallet is both a fast and easy-to-use payment method. While it may seem a little complex concept, it’s necessary to know and adapt to the changing system as soon as we can. Over 20% of the US population started using E-wallets after the Pandemic. Predictions say the user base is going to be tripled by 2025.

However, not everyone is aware of the situation. The common population is still unaware of what E-Wallets are? They do not have any idea how the E -a wallet works? And what are the benefits of an E-Wallet?

Don’t stress if you too don’t know about all the things. Let’s explore!

What is an e-wallet?

According to Economics Times, E-Wallet is the payment method which:  stores the user information and also lets you store money for future transactions.

Whenever you try to make a payment using an e-wallet, the system uses the information and transfers the amount to the merchant. Simple process, Right! Let’s move ahead and dig a little deeper.

Basic Function by E-Wallet :

  • Allow the user to store funds
  • Allow the user to make transactions
  • Keep the details of transactions you made previously.

E-Wallets are mainly used for making small transactions like groceries, online shopping, e-commerce shopping, tickets, mobile recharge, and other transactions.

Do you need cards to pay?

No! You don’t need a card to pay via E-wallet. As mentioned above, E-wallets are the way to make payments without any kind of physical contact.

Well, it sounds familiar because we have been using UPI for the last few years. Consider wallets as an updated method to make payments.  The bottom line, payment methods are in the revolutionary phase. We are switching to contactless payment methods.

How Do Wallets Work?

e-Wallet Payment functioning is based on the digital platform, the service provider saves the card information and lets’ user purchase direct transaction.

Dealing with a wallet involves the two processes:

  • Storing money the in the wallet 
  • Making a payment using a wallet.

We are going to discuss both the process. Have a look at How you can put money in your wallet?

How do I put money in my wallet?

Hera e as a mini step-by-step guide to putting/storing money in the wallet :

Step 1: First of all, open your wallet, and search for the option “ + Reload eWallet “ in your wallet interface.

Step 2: Now, enter the amount you to put in your wallet. In case you are sure about proceedings, just enter $1 as a sample amount.

Step 3: Click on the option “ New Credit /Debit Card option “

 Step 4: Enter the OTP you received and done. That’s it!

The amount is transferred to the wallet. You can use this amount anytime you want to make e payments.

Now, coming to the next process, how you can make a payment using your wallet? Read below!

Here is a guide on how you make transactions using your e-wallet :

How to pay using Digital Wallets to make transactions?

First of all, Log in to wallet, some of the popular wallets are Apple Pay, Amazon Pay, Google Pay, and PhonePay. You can sign up using the platforms.

Now, give all the required information to log in. Fill in relevant information, wallets usually ask for Account Number, Card Holder Name, and IFSC Code. Give all the information.

When you try to make a payment, an e-wallet uses the already saved info of your card. Thus the process becomes easy and convenient.

Be it Amazon Pay, Google Pay, PhonePay, or BHIM, every platform provides a scanning feature, where you can just scan the QR code and enter the pin, that’s it. Your payment is done !!

Additionally, some ATMs also allow the same rule. You can withdraw without any kind of physical contact. The process is similar to wallets with some modification, otherwise, the method is convenient but not popular yet.

The popularity of wallets is in progress. From the discussions, we can conclude that e-wallets are going to make some big changes in payment and wallet history. Let’s explore the possibilities!

Benefits of E-wallet

 Past years have been a drastic change in consumer preferences of this payment method.  People switched to wallets for convenience and are going to stay for security purposes. Read below to know how?

Consumer Convenience –

Consumer switched to an e-wallet and contactless payment due to reliability and theme which allows users to transfer without any physical touch.

According to the 2021 FIS Global Payments Report (GPR),

E-wallet trend  2024, digital wallets payment volume will grow an additional 38.2% over 2020 levels to account for 40.5% of North American e-commerce payment volume.

The rationale behind the surge is COVID people moved to contactless payment to ensure their security During times of pandemic contact fewer payments is just a trend but the trend is continuing. Now the question is trend is the trend going to continue or not?

Impregnable Security –

E-wallets are the secure method to do payments  Wondering how?

E-Wallet works on the Tokenization system. Tokenization came up with a solution that does not allow traders to access card details but also sanctions card access, compliance, and also reporting.

For example, suppose you added the Apple Pay Walle, service provider apple will capture the primary account details and create a unique issue for that specific card and device.

While making the payment the merchant only receives the token to sanction payments without encountering the real and sensitive card data.

Conclusion:

For the new concept,  learning, trying and implementing formula world best. If you are scared of new things and processes, don’t E-wallets don’t fall under the complex concepts. You just need to have a little patience to learn the concept, that’s it!

Pandemic already pushed us to the edge, who switched to wallets to know how easy payment methods become. Major businesses and industries are adapting to the new payment methods. Now, it’s your turn.

Download any of the popular wallets, install, sign up using your bank details and try to make payment through wallets!! Isn’t this simple? Try it today!

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