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How do digital wallet systems function?

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Asked by Question Bot06/Jan/20171 answer

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Faisal KhanContributor

06/Jan/2017

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A Google Wallet is inherently no different that any other money wallet. The basics behind all the wallets are the same. Each wallet is a bank account in some banking system. The entire eco system of wallet users, are simply a singular branch.

If you take the name "PayPal" out, and look at this detailed slide by slide diagram, it depicts very well how a digital money wallet works.

Faisal Khan's answer to What is a Paypal account? Is it a kind of bank account which is maintained for demand deposits? __ 𝐏𝐥𝐞𝐚𝐬𝐞 𝐂𝐚𝐥𝐥 PayPal 𝐓𝐨𝐥𝐥 𝐅𝐫𝐞𝐞 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐍𝐮𝐦𝐛𝐞𝐫 ☏+❶►❽❺❻▁❹❼❺►❷❺❺❺ ☏?

The key here is to understand the notion of a bank-branch access given to the company to run its mobile wallet (or in some cases, a complete CBS - Core Banking Solution), but one that would integrate with the originating bank's solution).