E-Wallet, Debit Card & Credit card

M1-R5.1 & CCC · Chapter 8: Digital Financial Tools and Applications · 4 min read

E-Wallet: - (Mobile Wallet, Digital Wallet, Virtual-Wallet)

  • An Ewallet is a digital system which stores users' cards digitally so that they can buy things electronically. 
  • It is a security store where users can complete purchases easily and quickly. 
  • E-wallet saves your time because you do not have to look for your credit card or bank information for faster transfer. You can use Utility payments, buying online things, recharge mobile phones, electricity bills etc. 
  • It is a prepaid service.
  • Examples for E-wallet- Paytm app, mobikwik, HDFC pay, Origen wallet, Amazon Pay, Airtel Money, ICICI Packet,SBI Buddy, iTz Cash, Jio Money, Citrus Pay etc. 

Types of E-Wallet:

(1) Closed E- Wallet 

(2) Open a E-Wallet

(3) Semi Open E- Wallet or  Semi Closed E- Wallet 

Debit Card

  1. A debit card is linked to your bank account.
  2. Any time you use the debit card to buy something money is detected from your bank account. 
  3. It is also used to conventionally withdraw cash from ATMs. 
  4. You can only spend the money that you have available to you.
  5. Debit cards are also known as prepaid services and plastic cards, ATM cards.
  6. In a debit card there expiry dates are mentioned in MM/YYYY.
  7. Debit Card has a 16 digit number as a card number.
  8. In the bank panel of the debit card,  a card security code mentions that it is called CVV number [card Verification value]. 
  9. CVV number is a three digit number.

Credit card

  • A Credit card allows you to use money from a bank to make purchases.   
  • The card issuer pays for the purchase and the card holder pays at the issuer the letter a date.
  • It is an interest free loan if you pay it bank on time. 
  • Felling to do so also to a penalty fee allowed with the due interest.
  • Your Credit card limit determines how much money you can use on pay.
  • First Credit Card in India developed by the Central bank of India in 1980. 

Types of Credit Card-

1.)  Business Credit Card. 

2.) Travel Credit Card. 

3.) Premium Credit Card. 

Common Features in Debit Card and Credit Card

  • A debit card and a credit card have several features in common.
  • They can be used to purchase goods and services both online and offline.
  • Each card has a 16-digit card number printed on the front.
  • Both cards have an expiry date mentioned in MM/YYYY format.
  • Each card contains a CVV number (Card Verification Value) on the back side for security purposes.
  • The CVV number is a three-digit security code used to verify online transactions.
  • Both cards are issued by banks or financial institutions in partnership with payment networks such as Visa, MasterCard, or RuPay.
  • Both cards offer protection against unauthorized transactions through PIN, OTP, and fraud monitoring systems.
  • Both are plastic cards that allow easy, secure, and cashless transactions.