Types of Digital Wallets

Know and understand about the different digital wallets out there and their uses.
Download App
Types of Digital Wallets
5 mins read
27 Oct 2023

What is a digital wallet?

A digital wallet, often referred to as e-wallet, is a virtual tool that enables users to manage their financial transactions in a simple and secure manner. It serves as a digital version of your physical wallet allowing users to store the data of their payment methods such as credit cards, debit cards and even cryptocurrencies.

With the Digital India initiative in the past few years, we have seen the rise of digital transactions all around. One can transact Rs. 1 or even a lakh and with no transaction fees levied.

Types of digital wallets

There are different types of digital wallets each catering to different user and preferences. They are:

  1. Mobile wallets: Apps designed for smartphones for easy payments such as Bajaj Pay, Google Pay, Paytm and Apple Pay.
  2. Online wallets: Web based wallets are those that can be accessed on a computer or mobile device such as PayPal and Skrill.
  3. Closed wallets: Wallets that are associated with a particular merchant or service provider.
  4. Open wallets: Unlike closed wallets, open wallets are those through which you can pay to any merchant or service provider.
  5. Cryptocurrency wallets: These wallets are designed to maintain your cryptocurrencies like Ethereum, Bitcoin, and others.
  6. Biometric wallets: Wallets that incorporate biometric authentication for login or payments or access.
  7. Bank-provided wallets: Banks offer digital wallets allowing their customers to manage their accounts, make payments or link loyalty programs.
  8. Card based wallets: Wallets that can be used in place of physical cards such as credit cards or debit cards or meal pass cards such as Zeta.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.