What are the Different Types of Digital Wallets?

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Different Types of Digital Wallets

Digital wallets are taking users into the world of online payment. This blog will give you an idea of different digital wallets and how these wallets can simplify your life.

Making cashless transactions in online shopping, in-shop purchases, and sending and receiving money, all are possible with digital wallets.

Many digital wallets are available today, and they have all the benefits. In the upcoming few years, digital wallets will become a huge trend. 

What Are Digital Wallets?

Digital wallets, also called e-wallets, are fintech apps used to perform online transactions fast and hassle-free. In other words, users can use their smartphones instead of notes, coins, or cards to make transactions online or in physical stores.  

If you don’t have physical cash, you can use digital wallets to make payments or online transactions. 

These digital wallets come with encrypting features that make your transaction secure. 

Different Types of Digital Wallets 

There are different types of digital wallets available in the market. Let us discuss them. 

i) Closed Wallet 

This type of digital wallet is only for selected users that can use it in selected stores to send and receive money. One of the amazing things about a closed wallet is that users or businesses using a closed wallet can make transactions only with the help of a private key. It is advised not to share the key with others. 

ii) Semi-Closed Wallet 

This type of digital wallet stores, sends and receives digital payments. All the information is stored in one place for security purposes.  There are some keys and passwords which need to be shared with another person before making any online transaction. 

iii) Open Wallet

An open wallet is associated with multiple banks. The entire transaction process is tracked and managed in a single place. 

It is essential to have an account on the same digital wallet to make any online transaction. PayPal is one example of an open digital wallet. 

iv) Crypto Wallet

A Crypto wallet is a digital wallet where users can send, receive and store cryptocurrencies. It is one of the most common crypto digital wallets where users can make online transactions with crypto currencies as it is easy and safe. Crypto wallet comes in various forms like paper wallet, hardware wallets, and mobile apps.

v) IoT Wallet

These digital wallets contain information related to the user’s identity used to send, receive, and store transactions on IoT devices using blockchain technologies. The main feature of the IoT digital wallets is that the data can be easily accessible through a smartwatch, smartphones, laptops, etc. 

One of the best examples of an IoT wallet is blockchain. 

Final Talk

Digital wallets are in demand these days. With the rapid growth of digital wallets, industries are investing in mobile wallet app development and building their digital wallet for their targeted customers. 

If you are a business owner and want to make a digital wallet for your business, you can hire a digital wallet app development company to build your app. 

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