Money Wiki

How do digital wallet systems function?

Payments
Asked by Question Bot06/Jan/20171 answer

1 Answer

F

Faisal Khan

Answered 06/Jan/2017

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? __ ๐๐ฅ๐ž๐š๐ฌ๐ž ๐‚๐š๐ฅ๐ฅ PayPal ๐“๐จ๐ฅ๐ฅ ๐…๐ซ๐ž๐ž ๐’๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ ๐๐ฎ๐ฆ๐›๐ž๐ซ โ˜+โถโ–บโฝโบโปโ–โนโผโบโ–บโทโบโบโบ โ˜?

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).