The mobile wallets are a form of payment service that allows users to receive and send money using their mobile devices. It’s a type of e-commerce model tailored to mobile devices for convenience and accessibility. The terms “mobile wallet” and “mobile money” or “mobile money transfer” are interchangeable.
It’s a digital wallet that you may carry around in your pocket. It saves payment information such as credit or debit card numbers and cash balances that can be used to make purchases. Best Mobile App Development Companies in Chennai provide the service of e-Wallet app development for payment.
In other words, it is a digital technology that allows you to pay your bills online instantaneously without having to pay with cash or constantly use your credit or debit card. It functions as a virtual wallet that may be filled with money from your bank account, credit or debit cards, and used to make purchases online. To make the payment, simply utilize your smartphone or tablet.
You don’t need to carry cash in your hands all of the time if you have e–Wallet apps loaded on your phone. For example, suppose you go to a restaurant and pay with your money wallet. Only if the restaurant is linked to a mobile wallet service provider will this be possible. This allows you to pay bills directly from your phone. You can also use an app, text messaging, social media, or a website to make a payment.
What is Mobile Wallet Technology?
Smartphones are widely available these days, and there appears to be an app for everything. Every day, “Mobile Wallet” technology grows in popularity. It is a method of storing your debit or credit card information in digital form on your mobile phone. You can make purchases with your smartphone, tablet, or smartwatch instead of using your physical plastic card.
Let’s now study how do mobile wallets work?
Do you have any idea when the first mobile phone was invented?
Customers may access all of their saved information by simply launching an app on their phones, entering a PIN, password, or fingerprint, and then selecting the data they require. This app then interacts with ready-to-play terminals in the mobile wallet using information transmission technology such as Near-Field Communications (NFC).
– Your credit or debit card is safely stored in Mobile Wallet.
– They can also keep track of your loyalty cards, coupons, and tickets, among other things.
– They use a variety of strategies or technologies to communicate with the terminals.
As a result, if you don’t have a device that can receive mobile wallet information, you won’t be able to use this increasingly popular payment method.
It is also clear that to use a mobile wallet, you must either transfer money from your bank account, debit card, or credit card or recharge it. Do you know that a mobile wallet can be both prepaid and post-paid, but that a pre-paid wallet requires you to recharge it before you can use the money? If you are unable to spend money for some time, it will be returned to your account. The account, on the other hand, is linked to the wallet in a postpaid mobile wallet. As a result, whenever you spend money from your wallet, money is debited immediately from your bank account.
How many types of mobile wallets are there?
In India, there are three different types of mobile wallets.
1. Open Wallet
Only the bank itself can issue this type of wallet. They allow you to buy goods and services, withdraw cash from ATMs, and transfer money. Vodafone M-Pesa, for example.
2. Semi-Closed Wallet
The issuer has a contract with semi-closed wallets that permits them to receive payment instruments. They will let you buy goods and services as well as execute financial activities at merchant locations that are identified. Take, for example, Paytm.
3. Closed Wallet
This is a well-liked service. Closed wallets are accounts issued by a corporation to a customer for the sole purpose of purchasing products and services from that firm. In the event of a cancellation or return of an order or gift card, a specific amount of money is locked with the company. For example, you can transfer money and utilize it just for the services provided by apps like Ola Money and Book My Show by creating an account with them. You cannot withdraw money from this wallet or use it to pay for other services.
How to use a mobile wallet?
To use this wallet, you must first create an account in the wallet that you wish to use, and you must have a mobile phone to do so. After registering for this service, money can be deposited into the wallet using a debit or credit card, and then the money wallet can be used to make purchases using a smartphone or mobile.
Advantages of Mobile Wallet
– Straightforward to use: Using a mobile wallet for day-to-day transactions is simple. All you have to do is download the app and set up a user ID and password. It’s as simple as using your smartphone to access your Gmail or Facebook account.
– Adding or loading money is simple: You may effortlessly add money to your wallet via net banking, credit card, or debit card. You can save time by not having to go to the bank or wait in line.
– A purse or other form of wallet can be stolen or lost in any location, but a mobile wallet cannot be stolen or lost.
– Money is held in a mobile wallet according to your needs, and you don’t have to disclose your debit or credit card information as regularly. As a result, your money is safe.
– Cash payments can be problematic at times. If you have a bill of Rs 480.50 that is not in a round number, you may have problems paying it, but with a mobile wallet, you may do so effortlessly.
– Carrying cash is not always necessary, and most mobile wallets provide services. A mobile wallet allows you to shop whenever and anywhere you choose.
– Ensures prompt payment: You can also use the auto feature to automatically deduct future bill payments from your wallet balance on a pre-determined date.
– Incentives and Promotions: We all know that each wallet has its own set of perks. E-wallets provide a plethora of money-saving opportunities in the form of discounts, rebates, special deals, and gifts. You can also make the most of promotional codes.
Disadvantage of Mobile Wallet
– For people who are tech-savvy and require a high-speed Internet connection, mobile wallet technology is simple to use. As a result, we may conclude that mobile network connectivity is the most significant impediment.
– The mobile wallet service provider has a small list of retailers and shopkeepers.
– It does not serve the full population’s needs. The majority of them have basic cell phones. Plastic money and mobile commerce have not yet fully taken hold across the country.
So, you’ve probably figured out that a mobile wallet is a form of digital wallet. It can be used for financial transactions, among other things. Or, to put it another way, it’s a smartphone-based virtual wallet where money is held in digital form. In reality, numerous wallet firms are enticing their customers with lucrative cash bank plans and other incentives. If you go shopping and your phone is connected to a mobile wallet service provider, you can pay with your phone as well as other methods such as social media, apps, and websites.