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Electronic wallet – what is it, how does it work and how to use it?

An e-wallet is a digital version of a traditional wallet. It allows you to store payment data and make transactions using mobile devices. It is a convenient and safe alternative to cash and payment cards.

What is an electronic wallet?

An electronic wallet, also called an e-wallet or digital wallet, is an online application or service that allows you to store payment information, such as credit or debit card numbers, in digital form. Thanks to this, users can make payments for purchases in stationary and online stores, as well as transfer funds between accounts without having to carry physical payment cards with them.


E-wallets work on mobile devices such as smartphones and tablets, but some are also available on desktop computers and laptops. To use this service, simply download the appropriate application or register on the provider's website and connect your payment cards.


Security of electronic wallets

One of the main advantages of electronic wallets is increased transaction security. Users' payment details are encrypted and protected against unauthorized access. Additionally, when making a payment, instead of sending the actual card number, the wallet generates a one-time code that is used to authorize the transaction. This ensures that your card details are never shared with the merchant.

How does an electronic wallet work?

E-wallets use various technologies to facilitate mobile payments. The most popular of them are:

Near Field Communication (NFC)

NFC technology enables wireless data exchange between devices located in close proximity to each other. Electronic wallets such as Apple Pay or Google Pay use NFC to connect to a payment terminal in a store. Just bring your smartphone close to the reader and the payment will be automatically initiated.

Magnetic transmission (MST)

Some e-wallets, such as Samsung Pay, use MST technology, which simulates the magnetic signal generated by traditional payment cards. This allows mobile payments to be accepted by older terminals that do not support NFC.

QR codes

E-wallets such as PayPal also allow you to make payments using QR codes. Just scan the code displayed on the payment terminal to initiate the transaction.


How to use an electronic wallet?

Using an electronic wallet is extremely simple. Here are some basic steps:

Download the app or register online

The first step is to download the electronic wallet application to your mobile device or register on the service provider's website. Popular wallets such as Apple Pay, Google Pay and Samsung Pay are usually pre-installed on new smartphones.

Add your payment cards

After installing the app or creating an online account, you'll need to add your credit or debit cards. To do this, simply enter your card number, expiry date and CVV code. Some wallets also allow you to scan your card using your smartphone camera.

Secure your wallet

To increase security, it's a good idea to set up additional authentication methods, such as fingerprint, facial recognition, or PIN. This way, only you will have access to your e-wallet.

Make payments

Once you have set up your wallet, you can start using it. In stationary stores, simply hold your smartphone close to the payment terminal, and in the case of online purchases, select the electronic wallet payment option when finalizing the order.

Advantages of electronic wallets

E-wallets provide many benefits to both users and merchants. You no longer need to carry a wallet with payment cards. All data is stored on your smartphone, so you can make payments in one go. By encrypting data and tokenizing card numbers, electronic wallets provide a higher level of security than traditional payment methods.


Mobile payments are much faster than cash or card payments. Just bring your smartphone close to the terminal and the transaction will be completed immediately. Many electronic wallets allow you to store not only payment cards, but also loyalty cards, discount coupons and tickets. Year by year, more and more stores and service providers accept mobile payments - it has actually become a common practice, which makes electronic wallets an even more universal payment method.


An electronic wallet is a convenient solution

An electronic wallet is a modern and convenient solution that makes it easier to make payments in the digital era. Thanks to advanced technologies such as NFC, MST and QR codes, mobile payments are becoming more common and accepted by merchants around the world. People who do not yet use an electronic wallet should consider this option - they will certainly appreciate its advantages.

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