In this paper a brief overview of online digital payment gateway is provided. This paper addresses the requirements for an electronic payment gateway from both the customers’ and the merchants’ point of view. Most people don’t trust the local existing online digital wallet and payment gateway because it is not very secure. People want to adopt this online digital electronic payment system as it has lots of advantages. They need such a gateway that fulfill their all requirements and provide security, privacy etc. On the basis of these requirements and the local infrastructure, we propose an online digital wallet for them. The online digital wallet and cash transaction system which involves the use of computers with connection lines is however on the increase as offline digital cash (examples ATM, Master card, and Visa International) where cards (metal or  plastic) are used for withdrawals on special machines made for the purpose.



A digital wallet also known as “e-wallet” refers to an electronic device or online service that allows an individual to make electronic transactions. This can include purchasing items online with a computer or using a smartphone to purchase something at a store. An individual’s bank account can also be linked to the digital wallet. They might also have their driver’s license, health card, loyalty card(s) and other ID documents stored on the phone. The credentials can be passed to a merchant’s terminal wirelessly via near field communication (NFC). Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder’s credentials. For example, a digital wallet could verify the age of the buyer to the store while purchasing alcohol. The system has already gained popularity in Japan, where digital wallets are known as “wallet mobiles”. A cryptocurrency wallet is a digital wallet where private keys are stored for cryptocurrencies like bitcoin.

A digital wallet has both a software and information component. Secure and fair electronic payment systems are important issue. The software provides security and encryption for the personal information and for the actual transaction. Typically, digital wallets are stored on the client side and are easily self-maintained and fully compatible with most e-commerce websites. A server-side digital wallet, also known as a thin wallet, is one that an organization creates for and about you and maintains on its servers. Server-side digital wallets are gaining popularity among major retailers due to the security, efficiency, and added utility it provides to the end-user, which increases their satisfaction of their overall purchase. The information component is basically a database of user-input information. This information consists of your shipping address, billing address, payment methods (including credit card numbers, expiry dates, and security numbers), and other information.

The landmark achievement however in the areas of electronics, computers and information technology coupled with the need to carryout transactions at a very fast rate has paved the way for the digital wallet transaction.

Essentially, digital wallet mimics the functionality of manual wallet. Paper currency and coins represent value because they are backed by a trusted third party, the government and the banking sector.

To a degree, the digital wallet transaction system operates in the following manner. A user opens an account online by filling his details in the online form provided for him. When done and submitted he is being taken to his e-wallet. He is given e-wallet login detail (e-wallet ID) and advised not to allow the ID be made known to another person. The user would then have to fund his e-wallet so that his online payment transaction would be charged from the wallet.