Digital Wallets Terms Glossary: Digital Wallets Terms in 2024
A
Account Aggregation
Account aggregation is a feature of digital wallet platforms that allows users to view and manage multiple financial accounts, including bank accounts, credit cards, and investments, in a single interface.
Aml
AML, which stands for Anti-Money Laundering, refers to a set of regulations and procedures aimed at detecting and preventing money laundering activities within the financial industry, including digital wallet platforms.
Api
API stands for Application Programming Interface, a set of rules and protocols that allows different software applications to communicate and exchange data with each other.
Artificial Intelligence
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines, allowing them to perform tasks that usually require human cognitive abilities, such as learning, problem-solving, and decision-making.
Authentication
Authentication is the process of verifying the identity of a user or device, typically through the use of passwords, biometrics, or security tokens.
Authorization
Authorization is the process of granting or denying access to certain resources or functionalities based on the authenticated user's permissions or privileges.
B
Banking-As-A-Service
Banking-as-a-Service (BaaS) is a financial service model that allows non-financial companies to leverage banking infrastructure and services, including digital wallets, through APIs.
Big Data
Big Data refers to the large volume of structured and unstructured data that inundates businesses on a daily basis, which can be analyzed to derive insights and make data-driven decisions.
Bill Splitting
Bill splitting is a feature of digital wallets that allows users to divide the cost of shared expenses, such as meals or rent, among multiple individuals and make separate payments.
Biometric Authentication
Biometric authentication involves using unique physical or behavioral characteristics, such as fingerprints or facial recognition, to verify the user's identity before granting access to the digital wallet.
Blockchain
Blockchain is a decentralized and distributed ledger technology that securely records transactions across multiple computers, providing transparency and tamper-proof transaction history.
Byzantine Fault Tolerance
Byzantine Fault Tolerance (BFT) is a property of a distributed system that allows it to reach consensus even if some nodes in the network fail or behave maliciously.
C
Cloud Computing
Cloud computing is the delivery of computing services, including servers, storage, databases, networking, software, analytics, and more, over the internet on a pay-as-you-go basis.
Contactless Payment
Contactless payment allows users to make transactions by tapping or waving their digital wallets or cards near a contactless-enabled terminal, eliminating the need for physical contact or swiping.
Contactless Payments
Contactless payments enable users to make transactions without physically swiping or inserting their payment cards, by tapping or waving their digital wallets or cards near a contactless-enabled terminal.
Cross-Border Payments
Cross-border payments involve transferring money or making transactions between individuals or businesses located in different countries using digital wallet platforms or other electronic payment systems.
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for secure financial transactions and controls the creation of additional units.
Cryptocurrency Exchange
A cryptocurrency exchange is a digital marketplace where users can buy, sell, and trade cryptocurrencies with other users, using traditional fiat currencies or other cryptocurrencies.
Cryptocurrency Wallet
A cryptocurrency wallet is a software program or hardware device that securely stores and manages a user's digital assets, such as Bitcoin, Ethereum, or other cryptocurrencies.
Customer Support
Customer support refers to the assistance and services provided by digital wallet providers to address user queries, concerns, or issues, often through various channels such as live chat, phone, or email.
D
Data Privacy
Data privacy refers to the protection and proper handling of personal data, ensuring that individuals have control over how their information is collected, used, and shared by organizations.
Decentralized Finance
Decentralized finance, also known as DeFi, refers to a financial system built on the blockchain that aims to provide open, permissionless, and decentralized alternatives to traditional financial intermediaries.
Decryption
Decryption is the process of converting encrypted data back into its original, readable form using a decryption key.
Digital Currency Exchange
A digital currency exchange is a platform or service that allows users to buy, sell, or trade digital currencies, including cryptocurrencies, using their digital wallets.
Digital Currency Wallet
A digital currency wallet is a software application or hardware device that allows users to securely store, send, and receive digital currencies, such as Bitcoin or Ethereum.
Digital Identity
A digital identity is a unique virtual representation of an individual or entity, which includes personal information, authentication credentials, and entitlements.
Digital Receipt
A digital receipt, also known as an e-receipt, is an electronic version of a paper receipt that is sent to a customer's email or stored in their digital wallet after a transaction.
Digital Receipts
Digital receipts, or e-receipts, are electronic versions of paper receipts that are automatically generated and sent to users' digital wallets after making a purchase, providing a record of the transaction.
Digital Wallet
A digital wallet, or e-wallet, is a software-based system that securely stores payment information, such as credit card details, for convenient and secure online transactions.
Digital Wallet Adoption
Digital wallet adoption refers to the rate at which consumers or businesses adopt and start using digital wallet platforms for their financial transactions, influenced by factors such as convenience, security, and acceptance.
Digital Wallet Integration
Digital wallet integration refers to the process of incorporating digital wallet functionality into websites, applications, or other platforms, enabling users to make payments or transactions seamlessly.
Dispute Resolution
Dispute resolution refers to the process of resolving conflicts or disputes between customers, businesses, and financial institutions regarding payment transactions or other related matters.
Distributed Ledger
A distributed ledger is a type of database that is shared, replicated, and synchronized across multiple nodes or computers in a network, providing a transparent and decentralized record of transactions.
E
E-Commerce
E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet, often involving digital wallet payments for online transactions.
E-Invoicing
E-invoicing is the process of generating, sending, and receiving electronic invoices within digital wallet platforms, eliminating the need for paper-based invoices and streamlining the payment process.
Emoney
E-money, or electronic money, refers to digital or virtual currency stored in electronic form and used for electronic transactions, such as those made through digital wallets.
Emv
EMV, which stands for Europay, Mastercard, and Visa, is a global standard for chip-based payment cards and terminals to enhance security and reduce fraud.
Encryption
Encryption is the process of encoding data or information in such a way that only authorized parties with the decryption keys can access or interpret the data, ensuring its confidentiality.
Ethereum
Ethereum is an open-source blockchain platform that enables the creation and deployment of decentralized applications (dApps) and smart contracts.
F
Fiat Currency
Fiat currency is a form of currency that is issued by a government and is not backed by a physical commodity, such as gold or silver, but by the trust and confidence of the people using it.
Financial Inclusion
Financial inclusion aims to provide individuals and communities, who are excluded from traditional banking services, access to affordable and secure financial products, including digital wallets.
Fintech
Fintech, short for financial technology, refers to innovative technology-driven solutions that enhance and automate financial services, including digital wallet platforms.
Fraud Detection
Fraud detection involves using advanced technologies, such as machine learning and AI, to identify patterns and anomalies in transaction data and prevent fraudulent activities in digital wallets.
Fund Transfers
Fund transfers enable users to send money from their digital wallets to another person or organization, either domestically or internationally, often with the option of using various transfer methods.
I
In-App Payments
In-app payments enable users to make purchases within a mobile application using their digital wallets, eliminating the need to exit the app and enter payment information separately.
In-Store Payments
In-store payments involve using digital wallets to make purchases at physical retail stores by tapping or scanning the digital wallet or a linked payment card at a contactless-enabled terminal.
K
Know Your Customer
Know Your Customer (KYC) is a regulatory requirement that mandates businesses to verify and collect customers' identification and financial information to prevent fraud, money laundering, and other illicit activities.
Kyc
KYC stands for Know Your Customer, a process that financial institutions and businesses use to verify the identity and assess the suitability of their customers before establishing a business relationship.
L
Loyalty Programs
Loyalty programs are marketing strategies used by businesses to reward customers for their repeat purchases or specific behaviors, often in the form of discounts, points, or exclusive offers.
M
M-Commerce
M-commerce, short for mobile commerce, refers to the buying and selling of goods and services using a mobile device, such as a smartphone or tablet.
Machine Learning
Machine Learning (ML) is a subset of AI that focuses on getting machines to learn from data and improve their performance over time without being explicitly programmed.
Merchant Account
A merchant account is a type of bank account that enables businesses to accept payments from customers via credit or debit cards.
Merchant Services
Merchant services refer to the range of financial services and solutions provided to businesses to facilitate the acceptance of digital payments, including integration with digital wallet platforms.
Microtransactions
Microtransactions are small-value financial transactions, often in the range of cents or pence, that occur frequently and enable the purchase of digital goods or services.
Middleware
Middleware refers to software that acts as a bridge or intermediary between different applications, enabling communication and data transfer between them.
Mobile Payments
Mobile payments refer to transactions made using a mobile device, such as a smartphone or tablet, through a digital wallet or a mobile payment app.
Mobile Wallet
A mobile wallet is a digital wallet that is specifically designed and optimized for use on mobile devices, such as smartphones or tablets.
Multi-Currency Wallet
A multi-currency wallet is a digital wallet that allows users to store and manage multiple types of currencies, both traditional and digital, in a single platform.
N
Nfc
Near Field Communication (NFC) is a technology that enables two electronic devices, such as a digital wallet and a payment terminal, to communicate wirelessly when they are within a short range.
O
Offline Payments
Offline payments refer to transactions made using digital wallets in situations where an internet connection is unavailable by utilizing technologies such as QR codes or NFC.
Omnichannel Payments
Omnichannel payments refer to the ability to accept payments from customers across multiple channels, including online, in-store, mobile, and other digital platforms, providing a seamless payment experience.
One-Click Checkout
One-click checkout is a feature that allows users to make purchases with a single click, without the need to re-enter their payment and shipping information.
One-Touch Payment
One-touch payment enables users to make purchases or payments with a single touch or click, without the need to enter payment information or authenticate the transaction separately.
Open Banking
Open banking is a regulatory framework that allows third-party financial service providers to access and utilize a user's financial data, with their consent, to offer personalized services.
Optical Character Recognition
Optical Character Recognition (OCR) is a technology that converts different types of documents, such as scanned paper documents or images, into edit-ready and searchable data.
P
P2P Payments
Peer-to-Peer (P2P) payments allow individuals to transfer money directly from their digital wallets to another person's wallet without the involvement of traditional financial institutions.
Payment Fraud
Payment fraud refers to any illegal or unauthorized activity carried out with the intent to deceive or gain monetary benefits from digital wallet transactions, potentially resulting in financial losses for users or businesses.
Payment Gateway
A payment gateway is a technology that connects digital wallet platforms or merchants to the banking system, facilitating the authorization and settlement of digital transactions.
Payment Settlement
Payment settlement is the process by which funds are transferred between different entities, such as merchants, customers, and banks, to complete a payment transaction.
Pci Dss
PCI DSS stands for Payment Card Industry Data Security Standard, a set of security standards designed to ensure the safe handling of cardholder data during payment card transactions.
Peer-To-Merchant Payments
Peer-to-Merchant (P2M) payments enable consumers to use their digital wallets to make direct payments to merchants without the need for physical cash or traditional payment methods.
Peer-To-Peer Payments
Peer-to-peer (P2P) payments are transactions that allow individuals to send and receive money directly from their bank accounts or digital wallets without the need for intermediaries.
Q
Qr Code
QR Code, short for Quick Response Code, is a two-dimensional barcode that can be scanned by a digital wallet or a mobile device to quickly access information or make payments.
Qr Code Payments
QR code payments allow users to make payments by scanning QR codes displayed at merchant establishments using their digital wallets, linking the payment to the specific transaction.
R
Recurring Payments
Recurring payments are transactions that occur on a regular basis, often automatically deducted from a user's digital wallet, such as monthly bills or subscription renewals.
Remittance
Remittance refers to money that is sent or transferred by individuals working in a foreign country back to their home country, often to support their families or cover living expenses.
Remittances
Remittances are money transfers sent by individuals, typically migrants, to their home country through digital wallet platforms or other financial channels.
Responsive Design
Responsive design is an approach to design and development that adapts the layout and user interface of a digital wallet to provide an optimal viewing and interaction experience across different devices and screen sizes.
Reward Points
Reward points are loyalty points earned by users when making purchases or transactions through digital wallets, which can be redeemed for discounts, vouchers, or other incentives.
Rewards Program
A rewards program is a loyalty program offered by businesses to incentivize customers by providing them with benefits, discounts, or rewards for their continued patronage.
S
Secure Element
A secure element is a hardware or software component within a smartphone or other devices that provides a secure and isolated environment for storing sensitive information, such as payment credentials.
Security Patch
A security patch is a software update released by digital wallet providers to address security vulnerabilities or fix bugs, ensuring the protection and integrity of the digital wallet platform.
Smart Contracts
Smart contracts are self-executing contracts with predefined rules and conditions encoded in computer programs, automatically enforcing the terms of agreements stored on the blockchain.
Ssl
SSL stands for Secure Sockets Layer, a cryptographic protocol that provides secure communication over the internet, ensuring data confidentiality, integrity, and authentication.
Stablecoin
A stablecoin is a type of cryptocurrency that is designed to minimize price volatility by pegging its value to a stable asset, such as a fiat currency or a commodity.
Subscription Billing
Subscription billing is a recurring payment model used by businesses to charge customers at regular intervals, typically monthly or annually, for access to a product or service.
Subscription Payments
Subscription payments refer to recurring payments made through digital wallets for subscription-based services, such as streaming platforms or software subscriptions.
T
Token Economy
A token economy is a system where digital tokens are used as a form of exchange or value representation within a specific digital ecosystem or platform.
Token-Based Payments
Token-based payments refer to transactions where a token, which represents the payment information, is used instead of sharing actual card details during the payment process.
Tokenization
Tokenization is the process of replacing sensitive payment data, such as credit card numbers, with a unique identifier, or token, to enhance security and reduce the risk of data breaches.
Tokenized Payments
Tokenized payments use tokenization technology to replace sensitive card information with a randomly generated token, ensuring secure transactions without exposing the actual payment data.
Transaction Fees
Transaction fees are charges levied by digital wallet providers for processing transactions conducted through their platforms, typically a percentage of the transaction value or a fixed amount.
Transaction Limit
A transaction limit is a predefined maximum amount that can be spent, transferred, or withdrawn within a specified period of time.
True Wallet
A true wallet is a term commonly used in some regions to refer to digital wallet platforms that offer a comprehensive range of financial services, including payments, money transfers, and other banking features.
Two-Factor Authentication
Two-factor authentication (2FA) adds an extra layer of security to digital wallets by requiring users to provide two forms of identification, such as a password and a unique verification code.
V
Virtual Card
A virtual card is a digital representation of a physical payment card that can be stored in a digital wallet and used for online or in-app purchases without the need for the physical card.
Virtual Wallet
A virtual wallet is an online or digital account that allows users to store and manage their payment information, conduct transactions, and make purchases through digital channels.
Voice Payments
Voice payments enable users to make payments or complete transactions through their digital wallets using voice commands or voice recognition technology, offering a convenient hands-free payment experience.
W
Wallet Balance
Wallet balance refers to the amount of funds available in a user's digital wallet.
Wallet Encryption
Wallet encryption is the process of protecting the digital wallet and its stored payment information by encrypting the data, ensuring that only authorized users can access and decrypt it.