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An online wallet is a program or web service that allows users to store and control their online shopping information, like logins, passwords, shipping address and credit card details, in one central place. It also provides a convenient and technologically quick method for consumers to purchase products from any person or store across the globe.
Generally, the payment process is:
First payment:
User registers, inputs their phone number, and the provider sends them an SMS with a PIN
User enters the received PIN, authenticating the number
User inputs their credit card info or another payment method if necessary (not necessary if the account has already been added) and validates payment
Subsequent payments:
The user re enters their PIN to authenticate and validates payment
Requesting a PIN is known to lower the success rate (conversion) for payments. These systems can be integrated with directly or can be combined with operator and credit card payments through a unified mobile web payment platform.

see more at wikipedia

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