Gone are the days when you had to carry a fat, heavy wallet in your pocket. Now, with the widespread use and launch of various mobile wallets in India, one can pay for almost any product or service, and transfer money with this technology. Be it paying for a taxi ride or buying your morning coffee and breakfast, mobile wallets are the go-to option in today's times. One can use mobile wallets to make in-store payments, online purchases, pay for digital content, and receive offers, cashbacks and rewards. This type of payment mechanism allows consumers to make ‘tap-and-pay’ purchases and use a single wallet for all purchases, including online and offline purchases. Mobile wallets are integrated and designed to allow secure, hassle-free and speedy payments for goods and services. A mobile wallet uses a bank account, debit or credit card information to process payments and the payment details are stored in a secure and encoded format. These wallets help lower the payment processing time, reduce fraud and are economical. It is very easy to use a mobile wallet- all you need to do is install the app on your smartphone and register for the service.
What is a Mobile Wallet?
A mobile wallet or an e-wallet is nothing but a digital version of a physical or real-life wallet, where one can add money to purchase various goods and services. One can set up this service on a smartphone by downloading the app, keying in personal information such as name, and payment details such as debit or credit card information. A mobile wallet can be used instead of debit cards, credit cards or money, and a customer can make payment by simply tapping their smartphone or tablet.
These types of wallets offer consumers the ease and convenience of purchasing goods online and also transferring money.
Types of Mobile Wallets in India
There are many types of digital wallets in India. The types are: open, semi-open, closed and semi-closed.
- Open mobile wallets: These types of mobile wallets are generally issued by banks. One can purchase goods and services, transfer money and also withdraw money through these mobile wallets.
- Semi-open mobile wallet: A semi-open wallet allows users to buy and purchase goods but not withdraw funds. In this type of wallet, one has to load money and use the same for any type of purchase.
- Semi-closed mobile wallets: These type of wallets allow consumers to make merchant payments. The mobile wallet company usually ties up with certain specified merchants.
- Closed wallets: In these types of wallets a certain specific amount of money is locked with the company. There is also no scope for withdrawal.
How to Register for a Mobile Wallet Service?
- Download the app and launch it
- Sign up by providing details
- Link debit/credit card
- Setup password, add money and use
How Does a Mobile Wallet Work?
Mobile wallets work by using Near-Field Communications (NFC)-enabled technology or QR code technology. They digitally store payment-related information in an encoded format for security reasons. There may be many variations of how payment information is stored and this varies from wallet to wallet. Apart from this, other information such as store coupons, loyalty programs, and other personal identity-related information is also stored.
- A mobile wallet works by communicating with terminals using various types of information transfer technology
- Most mobile wallets use NFC technology to communicate with payment terminals
How to Use a Mobile Wallet?
- Open the app
- Enter the PIN
- Choose the type of transaction you want to carry out
- Make payment
Advantages of Mobile Wallets
- Cashless transactions at the tap of a button: Mobile wallets help customers go cashless and cardless. There is no need to carry money and search for change. This offers consumers the convenience factor.
- Secure and safe: It is not always wise to carry a lot of money as there is a chance one might lose it. Embracing mobile wallets mean that one does not have to carry credit/debit cards or money. Money can be stolen, cards can be stolen or misused but this is not the case in mobile wallets. Digital wallets are secure because they use only encrypted data.
- Convenient: Mobile wallets are fast becoming the most convenient form of payment mechanism. It is very simple to use, there is no need to carry anything but your smartphone and all payment information is already on the phone.
- Fast and streamlined payments: All mobile wallet based transactions are always much faster, be it online or offline payments. All you have to do is ‘tap and pay’. Not just this, a single mobile wallet app can be used for all kinds of purchases.
- Multiple accounts: The main advantage of a mobile wallet is that one can store multiple card and account information in one single app and choose whatever payment mechanism you want to use.
Application of Mobile Wallets
Mobile wallets can be used to practically purchase anything. Here is a list of things you can do with a mobile wallet:
- Transfer funds to another mobile wallet holder
- Make purchases online
- Book flight and rail tickets
- Pay for taxi fare
- Pay utility bills
- Recharge your phone
- Can be used for both in-store and online purchases
- Can be used to pay for petrol at a petrol bunk
FAQs of Mobile Wallet
- Can you pay utility bills using mobile wallets?
- Is there any transaction fee or other charges levied for using a mobile wallet in India?
- How can a user load money into his/her mobile wallet?
- What will happen if there is an error in a transaction but the money gets debited from the wallet?
- Who can a user send money to using a mobile wallet?
- Is there a transaction fee for sending money?
- Is there an upper limit on the amount of money that can be sent?
- What if money is sent accidentally to a wrong mobile number?
- How can a customer make payment through mobile wallets on e-commerce sites?
- How to view my mobile wallet balance?
No, there is no fee levied and the app is free.
Customers can load money into their mobile wallet accounts by using their bank account, credit or debit card.
In such cases, where there are technical glitches, the money will be re-credited to the wallet within 2 working days or earlier.
Money can be sent to anyone who has a mobile wallet.
Generally, the service is free but this depends from wallet to wallet.
Generally, there is no maximum limit but some mobile wallet companies have a certain prescribed limit.
In such a case, contact the customer care executive for an immediate refund.
To make an online purchase, go to the online payment gateway and select the respective mobile wallet from the payment mode.
The mobile wallet balance is generally displayed on the home screen.
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