Technology has made lives easy. There were days when you would carry fat wallets while going for shopping. Things changed and plastic money (credit and debit cards) ended our dependence on cash.
Today, you do not need to carry even credit or debit cards while going for an outing. All you need is your smartphone (which you anyways carry) and all your payment problems are solved.
Mobile wallet is the latest in the series of facilities that ensure money on the go. Mobile wallet facility provides connection to your debit and credit cards giving you freedom to make easy payments. You can purchase goods, pay utility bills, recharge your mobile and track your spending with a single tap on your phone.
Telecommunication and e-commerce companies provide wallets in which one can easily preload money and use it to make payments.
Types of mobile wallets
Mobile wallets are of three types – open, closed and semi-closed.
Open wallet: Open wallets are issued exclusively by banks and can be used for making purchases, fund transfer and even cash withdrawal.
In open wallets, the money is managed by the bank concerned. Vodafone’s M-Pesa facility in association with ICICI Bank is an example of open wallet.
Closed wallet: A closed wallet is provided by a company or a service provider to its customers only. Closed wallet is used by a customer to avail the facilities provided exclusively by the company concerned. Companies such as Makemytrip, Firstcry and Flipkart offer closed wallet service.
Semi-closed wallet: Some companies like MobiKwik, Paytm and Citrus Payment Solutions provide semi-closed wallets which provide facility to buy goods or services at select establishments. These service providers have an agreement with the issuer to accept payments.
Cash withdrawal/redemption is not allowed in closed or semi-closed wallets. In semi-closed wallets, payment companies manage the money.
Mobile wallet: Key to money management
It has been quite some time since mobile wallet facility was introduced and its popularity has been rising by leaps and bounds. Mobile wallet is easy to use, easy to manage and is free of hassles. Here is how mobile wallets are easy to use and help you manage money better:
You can use open wallets for anything and everything — pay utility bills, book movie or train tickets, transfer funds and go for online or offline shopping. ✔ The earlier concept of money management has undergone a sea change due to emerging technology that is leading us to a cashless scenario. You can assess your wallet through a user name and password. It is like online banking made more convenient.
✔ There are several offers, freebies, discounts, rewards and cashbacks on the platter if you use mobile wallet. For example, you can use Airtel Money to get discount of around 35 per cent on a shopping of Rs 1,500 on Myntra.com. Airtel also gives talktime to its subscribers if they use Airtel Money facility for mobile recharge.
✔ Mobile wallet provides you the facility of tracking your spending. You can compare prices and make a wish-list of the products you want to purchase.
✔ Mobile wallet help you keep your money safe and better managed. Your money is preloaded in your mobile wallet so there is no fear of pick-pocketing and chances are you will not overspend.
✔ When you use net banking or debit/credit card, you are exposed to threat as you are disclosing sensitive data. This may lead to financial frauds.
✔ You will not have let go of change or accept candies if your shopping bill is, say Rs 763.
✔ The payment process is swift and you are through with a single tap on your mobile screen.
