The world, especially the young are constantly on a move today and prefer to travel light. The only thing they love to carry is a mobile which has become almost inseparable from them. And if you think all that a smartphone does is make calls and messages, you need to think again. The smartphone has become a sort of handyman which lets them handle everything remotely. The latest profile added to it is payment. Mobiles are now being used to make money transactions contributing to the world going cashless.
What exactly is a Mobile Wallet?
A mobile wallet, also known as digital wallet and e-wallet, are essentially virtual wallets which facilitate payment services enabling businesses and customers to send and receive money via mobile devices. A mobile wallet can hold digital money and can be used to make payments, recharge DTH, utility bill payments, book tickets and more. E-wallets have gained popularity over the last few years. Especially after demonetization, India took to digital wallets on a serious note. While there were cashless transactions being performed using debit and credit cards, digital wallets have completely changed the game. Many companies have now developed and are offering various attractive deals to get customers to use their mobile wallets. Apart from several private companies and banks, the Government too has launched a mobile payment solution(BHIM UPI).
The Way of Working
There are basically three types of e-wallets based on their freedom of interactivity. Accordingly, they let customers or users to either have access to particular products or services or merchants or even banks.
Closed – Closed wallets are provider specific and can be used only for goods and services enlisted by the provider and are utilized by providers for refunds etc. like Rapido Wallet. The provider restricts the usage in this case.
Semi-Closed – Semi-closed wallets let users make payment to specific and pre-recognized merchants. They do not allow bank transfers or cash withdrawal like Amazon Pay.
Open – Open Wallets are provided in partnership with a bank. They allow all type of payments, bank account transfers and more like Paytm.
Why Mobile wallets
The main reason behind the popularity of mobile wallets is a quick and safe transaction. The fact that you can use the mobile wallets from anywhere in the world and at any given time adds up to the charm and ease of using mobile wallets over traditional mode of payments. Then there are attractive offers that come along. For example, there is Mobikwik wallet with cashback and other offers if you deposit money into the wallet. Other reasons being:
Ease of Use – Mobile Wallets are very convenient and can be used from anywhere to send money anywhere and anytime. No closure of banks or ATMs to restrict the transaction.
Easy to Carry – A smartphone is all you need to carry to make payments. No additional wallets or cash etc. One can download multiple apps and wallets on a single mobile phone and operate them.
Safe – They are encrypted and secured through various methods. So even if one loses mobile, it won’t be easy for others to use the money. Various security measures like password, fingerprint, SMS-based security features are provided to secure each and every transaction made via mobile wallets.
Exciting Offers — Many providers like Paytm, Mobikwik offers exciting discount and attractive cashbacks when a user deposits money in the mobile wallet or uses the money to transact.
India is yet to catch up completely in terms of mobile wallets. Not everyone is very open about using mobile as a payment method. Also, some vendors and merchants do not accept all kind of wallets and are very specific or particular about whom they interact with.
The other point to ponder over is the rules and regulations regarding mobile wallets. Choosing a licensed and legal digital wallet is essential for seamless transactions and staying safe. While choosing a mobile wallet, users should check the kind of safety and security features, whether or not it supports most common merchants, services, customer care, and other details.
Mobile Wallets are surely becoming very trendy. With a little bit of caution and alertness from both the providers and the consumers, they can surely help realize the dream of cashless India.