E-commerce - Overview - Digital Wallet

Contents 1 Digital Wallet 1.1 Definition 1.2 Four steps of using E-wallet 1.3 Cooperating companies 1.4 Advantages and disadvantages 1.5 E-wallet in the future 1.6 Reference

Digital Wallet

Definition

Electronic wallet (E-wallet) is a software component in which a user stores credit card numbers and other personal information. When shopping online, the user simply clicks the e-wallet to automatically fill in the information needed to make a purchase (Turban. 2004:499).

E-wallet is basically another online payment scheme that functions as a carrier of e-cash, in the same way that a wallet is used to carry real cash for doing a physical transaction in an actual shop. The purpose is to offer a secure and easy means of online payment (Awad, 2003:492).

Four steps of using E-wallet

• Decide on an online shop website.

• Download the wallet form from the website and fill out the personal information such as credit number, phone number, and address. By filling out the details once, personal information will be completed automatically when customers click the E-wallet when purchasing in the future.

• Fill out the personal information as to where customers want merchandise to be shipped.

• When customers are ready to buy, one way is to click the E-wallet button to execute the process; or drag information out of the wallet and drop it into the online form.

(Rayport and Jaworski, 2002: 323)

Cooperating companies

The Electronic Commerce Modeling Language (ECML) is an organizational attempt to set standards for e-wallet vendors in the industry. It provides guidelines for Web merchandise in exchanging data for shipping, billing, and payment between users and merchants. Supporting companies include: American Express, America Online, Brodia, Compaq Computer, CyberCash, Discover, IBM, MasterCard International, Microsoft, Novell, Sun Microsystems and Visa International (Casselman, 2000).

Other on-line merchants who use e-wallet mode and support ECML include 1800-Batteries, Beyond.com, Dell Computer, Fashion.com, Healthshop.com, Nordstrom , Omaha Steaks, and Reel.com (Casselman, 2000).

Advantages and disadvantages

Jupiter Communications reoprt that 27% of online buyers abandon orders before checking out because of the hassle of filling out forms (Graphic Arts Monthly, 1999). E-wallet shortens and simplifies the process of repeatedly filling out detailed information, in a save environment. Customers not only save time but also have control of personal data by being able to drag the proper card from the E-wallet pop-up screen (Quinton, 1999:32).

However, the drawback is that users must download the wallet form and software, after the download is complete, the wallet is installed as a plug-in or ActiveX control which is within a browser that must also be installe. browser (Kerstetter, 1998:10).

E-wallet in the future

Due to the popularity of the mobile phone, mobile phone bill payments will predictably increase in the future. In Scandinavian countries such as Finland and Sweden, it is estimate that over 60% of the population has mobile phones and already has wireless mobile devices to pay for everyday purchases (Rayport and Jaworski, 2002:567).

Reference

Awad, E. M. (2003) Electronic Commerce: from vision to fulfillment, New Jersey: Prentice Hall, ISBN 013140265X

Casselman, G. (2000) E-Payment starts To Check Out, Inter@ctive Week vol. 7, iss. 19, p. 32.

Graphic Arts Monthly. (1999) Industry proposes new ‘digital wallet’ standard, Graphic Arts Monthly vol. 71, iss. 8.

Kerstetter, J. (1998) E-Wallet Eliminates Downloads, PC Week vol. 15, iss. 51, p.10.

Quinton, B. (1999) E-commerce shoots for the hip pocket, Telephony vol. 236, iss. 1, p. 32.

Rayport, J. and Jaworski, B. (2002) Introduction to e-commerce, Boston: McGraw-Hill, ISBN 0071124926

Turban, E., King, D., Lee, J., and Viehland, D. (2004) Electronic Commerce: A Managerial Perspective, New Jersey: Pearson Prentice Hall, ISBN 0130094935

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Yun Tze Pien 15:47, 30 Sep 2005 (EST)