In the world of e-Commerce, it’s very important to attract customers with a smooth, convenient shopping experience. The rise of digital wallet is corresponding to this desire. A digital wallet is a payment method that is based on an electronic device or software, and it usually does not require customers to bring any cash or card except that device when customers make purchases. For example, you only need to bring your phone and open an app for making payment in offline stores. You don’t need to bring your credit card or cash.
How does a digital wallet work?
Digital wallet may contain data allowing purchases from several credit card, and a means to interact securely with a merchant’s payment processing equipment.
Famous examples of digital wallets are PayPal, Veemo, Amazon Pay, Google Pay, and Samsung Pay. Once you enter your credit card information into these software or device, your purchases could be done without taking the credit card with you. When you buy things, you only need to show the software to the merchants, such as the QR code of the software. Some electronic wallets provide NFC (Near-Field Communication), which allows you make purchases without opening any software but only put your phone on seller’s terminal.
The money inside your digital wallet is decided by the information you entered. You can link either your credit card and debit card with digital wallet, or you can use gift cards that contain money (such as Apple Store Gift Card) to top up the wallet.
For credit card users, different digital wallets prefer different credit card. For example, Apple Credit Card offers great bonus for Apple Pay, a kind of electronic wallet. A new Apple Card allows you to earn 3% cash back on Apple purchases, 2% on Apple Pay purchases, and 1% in everything else. For Wells Fargo Cash Wise Visa card, it offers 1.8% cash back on electronic wallet purchases in the first year, which is a slightly increase compared to its 1.5% cash back on everything else.