Technical Terms

In the "Knowledge" section, we have compiled a glossary for you on the topics of risk and receivables management, e-commerce, payment and payment protection.

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    Payment Wallet

Payment Wallet

A wallet – also called cyber or payment wallet – corresponds to an online electronic wallet, purse, or money clip, and is used for processing cashless payment transactions. Accordingly, a wallet is an electronic purse. E-Wallet or digital wallet are other synonyms for electronic purse. Google Walletis one of the most widely use wallets.

Loading the wallet

Before a wallet can be used it must first be loaded with the desired balance. An E-Wallet can be loaded using different methods. The user has free choice and can select between different loading methods. Loading is typically accomplished with a Credit Card or funds transfer. Users of E-Wallets generally have two options to use these for payment. The first method entails loading and subsequently using the wallet until the balance has been drawn down. When this method is used, it is referred to as a Prepaid wallet. The wallet owner links a reference account for the second method. If the user uses the account for a transaction, the money is withdrawn from the reference account. Accordingly, the wallet can be used until the linked reference account no longer has sufficient funds. The advantage of a wallet, E-Wallet, or cyber-wallet is that transactions can be processed much faster and typically also with greater ease than conventional funds transfers. There are frequently also lower transaction fees compared to a credit card (for the seller/merchant).

Payment Wallet Providers

20 million people in Germany already have access to an E-Wallet from PayPal (eBay subsidiary). PayPal offers the payment method using a reference account. In addition to PayPal there is also T-Pay, Lemon Wallet, Isis, Moneybookers and many other suppliers of E-Wallet systems. In order to make E-Wallets more appealing to customers and to advance their spread and user acceptance, NFC technology (Near Field Communication) will see wider use in the payment patterns of users/customers. Mobile payment with smartphones in conjunction with NFC technology and a wallet is designed to give users the ability to conveniently pay small and larger amounts directly at the store using smartphones.

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