3. • Digital wallet is the digitized version of
traditional leather wallet, to safe keep your
money, credit cards, etc.
• A digital wallet refers to an electronic device
that allows a user to make an electronic
payment with a financial instrument (such as a
credit card or digital cash)
• It hides the low-level details of executing the
payment protocol that is used to make the
5. • There are about 1.3 billion active credit and debit accounts in the
world today, there are approximately 5.3 billion active mobile
phone accounts. Payment-enabled mobile phones could quickly
outnumber traditional card based payment accounts.
• Thick, bulky, unmanageable physical wallet replaced !!
• They may also allow you to store multiple payment types
(cards, bank accounts).
• In addition to providing consumers with a new way to make
payments, mobile devices represent a new channel for
merchants and financial institutions to communicate with their
8. Types and components
Digital wallets are categorized into three kinds:
• Closed Wallet: by a company to a consumer for buying goods and services
exclusively from that company.
E.g. Flipkart , Oyo rooms, Ola
• Semi-Closed Wallet: Used to buy goods and services at clearly identified
merchant locations or establishments. Prepaid services are used .
Do not permit cash withdrawal or redemption
E.g. Paytm , Oxigen Wallet ,Airtel money etc .
• Open Wallet: Used for purchase of goods and services ,for funds
for cash withdrawal from ATM.
Eg. MasterCard, VISA, RuPay, etc
9. A digital wallet has a software and information component.
The software provides security and encryption for the
personal information and for the actual transaction.
Normally, digital wallets are stored on the client side stores
A server-side digital wallet, is the one that an organization
creates for and about you and maintains on its servers.
The information component is basically a database of user-
inputted information like shipping address, billing
address, payment methods ,credit card numbers, expiry dates
10. User Profile Manager
Manages all of the
options contained in the
Provides the wallet with an
interface to send and
between wallets by setting
up a connection with a
Manages all of the
protocols that the wallet
may use to accomplish
various operations, and
invokes protocols to carry
out the interaction
between the digital wallet
and the vendors and
banks. Responsible for
about clients and groups
of clients of the wallet
including their user
names, passwords, ship-
to and bill-to addresses,
and other user
Presents a interface for
the wallet to the client.
The Wallet Controller
hides the complexity of the
other components of the
Provides a graphical
interface to the services
offered by the Wallet
11. Technologies used in Digital
that allows you to
pay for goods by
swiping a device
the process of
sensitive data element
with a non-sensitive
equivalent, referred to
as a token,.
The cloud is where
people store and
on remote servers,
rather than on
barcode which can
be read by certain
(by taking a photo of
the barcode) and
such as a URL etc.
encryption is the
process of encoding
information in such a
way that only
authorized parties can
In India :
• Paytm, started in Jan 2014 ,reached 20 million users by Dec,2014 and
100 million by the end of July ‘15.
• Airtel money (with 192.22 million subscribers as of August 2013) has
been a popular mobile payment system(Semi-Wallet)
• Immediate Payment Service (IMPS) is provided by the Reserve Bank
of India. It offers instant, 24×7, interbank electronic fund transfer service
through mobile phones.
• In a survey conducted by etailing India that how often people use digital
wallet 37% of the respondent say weekly while 26% of the respondent
preferred monthly usage of digital wallet while 17% daily
• 92% Kenyans use M-pesa for Mobile payment
• 54% transactions in Alipay are on mobile
• In an online Survey by Business Intelligence , 58 % found Digital wallet
insanely cool 20
As all areas of life become more mobile, take care of your digital wallet
in a similar way you would your actual wallet. Instead of double-checking
to make sure your billfold is ensconced in a backpack, purse or man-
bag, rely on mobile data security to keep you protected. It’s the best way
to keep your financial information safe from invisible hacker "mitts"
reaching in to steal your ducats.