An online wallet is a software or web service that allows users to store and control their

online shop Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the r ...

ping information, such as logins,

password A password, sometimes called a passcode (for example in Apple devices), is secret data, typically a string of characters, usually used to confirm a user's identity. Traditionally, passwords were expected to be memorized, but the large number of ...

s, shipping address and

credit card A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the ...

details. It also provides a method for consumers to purchase products from online retailers. These systems can be integrated with directly or can be combined with operator and credit card payments through a unified mobile web payment platform. Examples include

Google Wallet Google Wallet (or simply Wallet) is a digital wallet platform developed by Google. It is available for the Android, Wear OS, and Fitbit OS operating systems, and was announced on May 11, 2022, at the 2022 Google I/O keynote. It began rol ...

PayPal PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper ...

Yandex.Money YooMoney branded as ЮMoney, formerly known as Yandex.Money (russian: Яндекс.Деньги), is Russia's second largest electronic payment service after "Sberbank Online" according to a 2020 research by Mediascope. It is an online payment ...

History

English entrepreneur

Michael Aldrich Michael Aldrich (22 August 1941 – 19 May 2014) was an English inventor, innovator and entrepreneur. In 1979 he invented online shopping to enable online transaction processing between consumers and businesses, or between one business and an ...

invented online shopping in 1979. His system connected a modified domestic TV to a real-time transaction processing computer via a domestic telephone line. He believed that

videotex Videotex (or interactive videotex) was one of the earliest implementations of an end-user information system. From the late 1970s to early 2010s, it was used to deliver information (usually pages of text) to a user in computer-like format, typi ...

, the modified domestic TV technology with a simple menu-driven human–computer interface, was a 'new, universally applicable, participative communication medium — the first since the invention of the telephone.' This enabled 'closed' corporate information systems to be opened to 'outside' correspondents not just for transaction processing but also for e-messaging and information retrieval and dissemination, later known as e-business. His definition of the new mass communications medium as 'participative' nteractive, many-to-manywas fundamentally different from the traditional definitions of

mass communication Mass communication is the process of imparting and exchanging information through mass media to large segments of the population. It is usually understood for relating to various forms of media, as its technologies are used for the dissemination o ...

and

mass media Mass media refers to a diverse array of media technologies that reach a large audience via mass communication. The technologies through which this communication takes place include a variety of outlets. Broadcast media transmit informati ...

and a precursor to the social networking on the

Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...

25 years later. In March 1980 he went on to launch Redifon's Office Revolution, which allowed consumers, customers, agents, distributors, suppliers and service companies to be connected on-line to the corporate systems and allow business transactions to be completed electronically in real-time. During the 1980s he designed, manufactured, sold, installed, maintained and supported many

online shopping Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of t ...

systems, using videotex technology. These systems which also provided voice response and handprint processing pre-date the Internet and the

World Wide Web The World Wide Web (WWW), commonly known as the Web, is an information system enabling documents and other web resources to be accessed over the Internet. Documents and downloadable media are made available to the network through web ...

, the

IBM PC The IBM Personal Computer (model 5150, commonly known as the IBM PC) is the first microcomputer released in the IBM PC model line and the basis for the IBM PC compatible de facto standard. Released on August 12, 1981, it was created by a team ...

, and

Microsoft MS-DOS MS-DOS ( ; acronym for Microsoft Disk Operating System, also known as Microsoft DOS) is an operating system for x86-based personal computers mostly developed by Microsoft. Collectively, MS-DOS, its rebranding as IBM PC DOS, and a few oper ...

, and were installed mainly in the UK by large corporations. The first

server and browser, created by

Tim Berners-Lee Sir Timothy John Berners-Lee (born 8 June 1955), also known as TimBL, is an English computer scientist best known as the inventor of the World Wide Web. He is a Professorial Fellow of Computer Science at the University of Oxford and a profes ...

in 1990, opened for commercial use in 1991. Thereafter, subsequent technological innovations emerged in 1994:

online banking Online banking, also known as internet banking, web banking or home banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial ins ...

, the opening of an online pizza shop by

Pizza Hut Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958 in Wichita, Kansas by Dan and Frank Carney. They serve their signature pan pizza and other dishes including pasta, breadsticks and desse ...

, Netscape's SSL v2

encryption In cryptography, encryption is the process of encoding information. This process converts the original representation of the information, known as plaintext, into an alternative form known as ciphertext. Ideally, only authorized parties can d ...

standard for secure data transfer, and Intershop's first online shopping system. Immediately after, Amazon.com launched its online shopping site in 1995 and

eBay eBay Inc. ( ) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. eBay was founded by Pierre Omidyar in 1995 and became ...

was also introduced in 1995.

Acceptance as a form of payment

Due to slow adoption and high competition, there is currently no one standard online wallet that is universally accepted. The acceptance of the online wallet as a form of payment varies based on both individual store policy and the type of online wallet being used. For example,

can be used at MasterCard Paypass locations within the United States. Conversely,

Bitcoin Bitcoin (abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...

, while accepted internationally, is much less frequently accepted, due in part to its connection to illegal websites like

Silk Road (marketplace) Silk Road was an online black market and the first modern darknet market. It was launched in 2011 by its American founder Ross Ulbricht under the pseudonym "Dread Pirate Roberts". As part of the dark web, Silk Road operated as a hidden servic ...

. Bitcoin can also be held in an online

cryptocurrency wallet A cryptocurrency wallet is a device, physical medium, program or a service which stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a cryptocurrency wallet more often al ...

. It is predicted that in the near future, as the use of online wallets increases, consumer attraction to specific technologies will reduce the number of specific online wallets.

References

{{Reflist, 30em Payment systems

History

Acceptance as a form of payment

See also

References