Mobile wallets have become necessary for each one of us. We do not carry a large amount of cash anywhere today. Also, we fear the charges that will be imposed on our card swipes. Therefore, a mobile wallet seems to be the most definite way that a user will always be comfortable. Technology has been changing its way of buying, selling and trading or dealing with products and services. Money has been replaced with an online exchange. Especially when the pandemic came in, it became necessary to use mobile wallets so that there was minimum interaction between two people and the maintenance of hygiene.
Introduction to the idea of mobile wallets
Mobile wallets are also known as e-wallets which are simply mobile applications that can be downloaded from the play store or App Store. You might be thinking that how will you make this cashless transaction while your mobile has gone for mobile repair? You can certainly log in to your account from another device to make the payment. These applications allow us to receive and transfer amounts of money in exchange for products or services. Today we have multiple mobile wallet applications. Some of the mobile wallet applications of Paytm, PhonePe, Google pay and so on.
The user can make payments by simply scanning the QR code of another user. They can also enter their mobile number and the amount will be transferred to the bank account that has been linked to the user’s mobile number. The best part about mobile wallets is you do not have to carry any physical wallet for them. You just have to link your bank account with your registered number or keep some wallet balance in the application itself. You can transfer money or receive money from anyone across the globe.
How is a mobile wallet better than banking applications or internet banking?
We do not intend to compare these applications with any specific banking applications. However, it is seen that you do not have to add a beneficiary and wait for hours for the bank to process it. You can simply scan the QR code of any user or any business to make the payment. You can also do this by transferring the amount to the user’s mobile number. Mobile wallets are known for their instant transactions within a short period. Today we see that mobile wallets are present in small-scale businesses as well as large-scale businesses. Whether it is a homemaker or a business person, everyone uses mobile wallets today. However, there are different types of e-wallets present.
Other benefits of an e-wallet:
- Cashless transaction
E-wallets are the most convenient for making payments without worrying about carrying currency which is coins or notes. Most importantly, it is a hygienic way to deal while trading money from your pocket to someone else’s pocket.
- Simple and easy
Mobile wallets are a simple way of making payments or receiving payments. You do not have to put any effort or follow a set of rules that is difficult to remember. It is simply known as scan and pay. The receiver can also request any certain amount of money from the sender and you will just need to enter your UPI pin to confirm it.
- Safety and security
There is always a risk that we take while windows in online transactions. This is not true. Even if your money gets stuck while transferring your money to someone else, the application that you are using will always have a support centre which will help you get your money back. You won’t even have to reach out to most of the health centres as they credit the money within no time.
Types of e-wallet
- Closed e-wallet
The closed e-wallet is used by individual businesses. They allow you to make favourites only for the application and are accessed only by that specific business.
- Semi-closed e-wallet
Semi-closed e-wallets have some of the qualities of closed e-wallets. Semi-closed e-wallets a signed up with companies or retail stores and these companies only have Wallet restricting access.
- Opened Wallet
Open a Wallet are the more used ones which are issued by the bank or third-party applications which allow the users to carry on their transactions. Many e-wallets also allow their users to withdraw money through the ATM of any bank with the application.
E-wallets are the best way to deal with transactions whether you are dealing with them alone or along with your businesses. This is the most adaptive technology that has come along. Mobile wallets have also gained a lot of attention from people as it has become the most convenient way to transfer money to anyone and everyone. It became popular amongst a large number of people within a few years. Whether you go to the supermarket go to the chemist or while you are travelling in a cab, you will always find the QR scanner for making payments. If your mobile doesn’t support this technology so it’s time to sell your old mobile phone and replace it with new and upgraded mobile.