Wallet

What is a digital wallet?

Digital wallets, also known as e-wallets, are payment tools that allow you to pay digitally. They work like a traditional wallet but adapted to the online world.

In most cases, these wallets are available as mobile apps, securely storing virtual versions of multiple cards. This means users don’t need to enter their card details for every transaction—or even carry their physical card. Another advantage is the ability to store digital receipts, letting users access important documents whenever they need them.

How do digital wallets work?

A digital wallet uses software to link payment data between a bank account and the provider processing the transaction. Once you set up your digital wallet, you can use it to pay online or contactless, store receipts and other documents, etc. There are many wallets available, with the most popular being Apple Pay and Google Pay.

There are also different types of digital wallets:

• Open wallets are accepted in most merchants and allow for many types of transactions—online purchases, contactless payments, refunds, and even ATM withdrawals in some cases.

• Semi-closed and closed wallets only allow transactions within a specific group of merchants or within the companies that created them.

What benefits does a digital wallet bring to your business?

Improves conversion
By reducing the steps required during payment (entering card number, CVV, personal details, etc.) and making checkout easier, sales increase.

Greater control of expenses
With a wallet, users can manage their finances in a more organized and centralized way, viewing income, expenses, rewards, discounts and more.

Customer loyalty through reward programs
Wallets can include loyalty features such as discount codes, personalized promotions and points systems to encourage repeat purchases, helping your brand stand out from the competition.