Mobile wallets are virtual wallets that store your card information on a mobile and you can use it to make payments at stores or make any kind of purchases with the merchants listed with mobile wallet service providers.
For all the digital platforms introduced and the initiatives taken to make our people digitally sound and active, demonetization is considered the root cause and sole reason for seeing mobile wallets usage going up. Everyone is dependent on mobile wallets than anything else. A blog by Finextra states the mobile wallet like Paytm saw its users doubled in November 2017 as compared to those in 2016. It was a massive change observed in the digital sector. The further rise has been credited to the KYC process and Aadhar verification for every transaction. This simplification has developed the mobile wallet market.
With the rise in digital trends, most of the popular banks also came up with their mobile wallets or application. Some of the most popular top mobile wallets in India are paytm, freecharge, paymate, payUmoney, Mobikwik, Mswipe, moneyonmobile, ola money and the latest one hitting the markets is Phonepe.
Mobile Wallet Benefits and Features
Being cashless in no more a worry
Earlier people were so dependent on cash that it used to worry a person if he/she walked out an empty pocket. Although there are still places where you cannot do without cash, however people have stopped considering those options or places. They choose a place where a mobile wallet works. Now, there is nothing to worry if you are cashless. Being cashless is fashion in today’s times.
Easy payment and purchases
Mobile wallets have made the life of its users easy with faster and quicker payment options. With your card details registered, you can make easy payments at the counters with your devices.
Rewards and discounts
You receive certain rewards, cashback or discounts by making payments via mobile wallets. Sit back and enjoy the special offers by using mobile wallets, it’s simple and easy.
When you don’t have much money, there is no fear of losing it. With a mobile wallet and limited money in it, it makes you feel secure. There can be fraud online as well yet it is quite secure.
Multiple account management and process
You can operate and manage multiple cards from a single mobile wallet. Therefore, it’s quite convenient.
Major reasons for Rising in the Mobile Wallet Market
Demonetisation is credited with the massive move towards mobile wallet utility. Sudden cash crunch forced the people to move to digital payments and use of mobile wallets as it was the easily available option.
KYC process and Aadhar
Mandatory linking of aadhar with the accounts and KYC processes worked in favor of the mobile wallets industry and took a sudden rise because people found it quite friendly. Even the banking going digital made people more familiar with the growing financial technology and hence, the increase in the number of users.
Read More: Top 5 Mobile Wallets in India
Attractive offers and value-added services
A single platform offering multiple services is what drives the masses to use mobile wallets. From mobile recharge to buying tickets and paying bills, everything is offered in one place, therefore, making it a complete package. Apart from these utility services, there is cashback on availing these services and various other attractive offers making it a useful deal. How would one resist when such additional benefits are being offered?
Matching the needs
Market analyses and studies have helped the mobile wallet operators to know the need of the masses and every mobile wallet agent caters to its customers’ requirements in the best way possible, therefore, building customer loyalty.
With the growing dependency on mobile phones, mobile wallets have gained a lot of development. People are dependent on mobile for almost everything and with few clicks, you can process anything in present times. Mobile has become a necessity from luxury and is the need of the hour. It is cost-efficient, therefore, affordable for the majority of the population.
Registering and using the mobile wallet services
- Download the mobile wallet app
- Sign up with your credentials
- Link or add your debit/credit card
- Set up the password
- Add money to your wallet
- It is ready to use
- Log in with your credentials
- Enter password or pin.
- Choose your transaction type
- Make payment
Mobile wallet’s functionality
Majorly mobile wallets work on 2 technologies one is the most common that is QR code, where the payer scans the QR code to make successful payments, the other is Near-field communication technology. The payment-related information is encoded obviously for security reasons. However, different payment methods are followed by different wallets. There are various information transfer technologies followed and others follow NFC technologies to connect with payment terminals.
Services offered on mobile wallets
- Fund transfer to other mobile holders
- Make an online purchase via easy payments
- Book flight or railway tickets
- Pay fares like a taxi, auto
- Pay utility bills
- Make In-store payments
- Recharge phone
- Pay at petrol pumps
Mobile wallets have conquered the market in a way that people have become dependent on it completely and feel relaxed. The aim is still to reach the unreached masses and make a complete digital India. It is not popular among professionals, youngsters or people in urban areas but reaching the uncommon masses, small vendors, rural people, and senior citizens. It is becoming the trend of the times that is encouraged by our government.