ADVANTAGES: (a) Lower Cost: Employing the use of digital wallets removes the need for intermediaries, in a variety of forms.

Purchases in-store may no longer require a cashier because the purchasing process becomes a tap or scan of a mobile device. (b) Competitive Advantage: Digital wallet applications give a convenient process for customers, giving organizations that utilize this innovation an edge in the market. It redefines the use experience of paying and fuses a curiosity angle to each buy. (c) Convenience: Users can get through a purchase in mere seconds with a simple tap or scan of their mobile device rather than carrying the card physically. Also, details of multiple cards can be stored at a single place eliminating the need of carrying wallet full of cards.

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The experience of purchasing items becomes quicker and easier-leading to a greater sense of satisfaction. Also, with faster transactions, checkout lines within stores become short(d) Security: Digital wallets are safe as the payment details wouldn’t be transferred to the website. The other primary advantage is its less exposed to physical theft and information stealing through card skimmers can be avoided. Data is secure as it would be stored in encrypted format on cloud.DISADVANTAGES :(a) Investment: The initial monetary investment for building a practical advanced wallet application is very vast.

It requires the initial development of the software as well as the continual maintenance, updates and fixes associated with it. After getting programming, the business would likewise need to introduce the comparing equipment in their stores, which prompts a further increment in costs. (b) Support Technology: There are few supporting technologies to choose from now, with NFC terminals and phone readers being the most prevalent. In the case of digital wallets, they can only function with a corresponding hardware device for each application. NFC terminals and specialize scanners are the only devices created now that will support the processing of digital wallet payments; thus, it is very limited because the technology is still new.(c) System Outages: Information for digital wallets are stored on the cloud of business servers; therefore, the risk of a system malfunction or shut down is always present. As a result, businesses will not be able to process payments, or they will become increasingly slow due to high traffic in the servers.

When the phone battery dies, the wallet cannot be used and also if a mobile is lost ,wallet will be lost and payment cannot be made .(d) Security: Organizations must guarantee that their clients’ data is scrambled and very much ensured. They should create security frameworks that are as protected and full confirmation as conceivable to dodge potential security issues.Pay Pass Wallet Services is an attempt to expand it to online stores and mobile phone users. Merchants want flexibility to easily accept digital payments so they can convert more browsers to buyers.

American Airlines and Barnes & Noble were among the first merchant partners to incorporate the PayPass Online checkout button on their websites, and American Airlines integrated first PayPass Wallet into its mobile application. PayPass Wallet evolved into MasterPass and now using this MasterCard plans to allow banks, merchants and other partners to use its own technology to create their own digital wallets. It will also distribute developer tools to allow other digital wallets to connect to the MasterPass or PayPass  network, allowing their customers to make purchases online or in stores that accept Pay Pass or MasterPass.  


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