Gone are the days of big bulky wallets and pockets full of coins. The world is moving towards digital wallets, which are a lot faster and more secure and have made lives easier for all of us. All of this is most evident when we look at India, which is quickly pacing towards becoming a cashless society.
If you know the Indian economy then you know a few years back, they gave away some of their banknotes in a bid to fight corruption. This did not turn out so well, as it did not help curb corruption and in the short term, it created an economic crisis due to currency shortage. But in the long term, it did do some good in other ways.
The good thing that came out of the Indian currency shortage was the rise of digital wallets and payment apps like Paytm, Spay India, and MobiKwik, etc. Some of these are new and some were already present. But lack of physical currency gave them a boost. Coupled with the introduction of UPI, it gave rise to India’s digital economy and it is showing no signs of slowing down.
Before the demonetization and introduction of mobile wallets, 95% percent of Indian transactions were cash-based and most of the online shopping was done through ‘Cash on delivery as there was no suitable online payment method. All that has changed now with the majority of transactions being done online and estimated at $4.4 billion.
But what are mobile wallets and how do they work? What else can they do besides online transactions? What are their advantages over cash-based transactions? All these questions are answered below.
Think of a digital wallet as something similar to a physical wallet. It holds all your money, but instead of putting it in your pocket, you install it on your phone just like an app. Just like you, every other person has similar apps and instead of physically sending and receiving the money you do it through the apps.
Not only can you send and receive money but thanks to apps like SpayIndia or MobiKwik you can also pay utility bills, book plane or train tickets, and more, with the push of a few buttons. Not only does this make transactions faster but they are also more secure.
It is very easy to install and use mobile wallets and takes only a few steps.
- First step is to download the desired app from Google or Apple store on your android or iOS device.
- Next you need to register on the app, using your mobile number and email address etc
- Then you add money to the app using your debit or credit card or directly from your bank account.
- All that is left now is to send or receive money through the app or even shop online, if you feel like it.
If you were to use a few words to describe the advantages of mobile wallets it would be ‘quick and secure’. But the advantages are much more than that and are as following:
- Payment through push of button
Mobile wallets have helped us get rid of the old ways of payment, which required physically going to a bank or ATM to send or receive money. Now you can do that with a few clicks or taps on the touch screen of your phone. Whether it is sending money or receiving it, all can be done in a matter of minutes.
- Easily of access
Before mobile wallets, if you had to get money from someone or give them, you had to physically get to them. Finding a working ATM at night or in the rain was not an easy task. Now if you have to make any payment, all you need is a good transaction, and no matter where you are, you can do it.
- More than just a payment method
Mobile wallets are not just limited to sending or receiving money. You can pay your bills, insurance premiums, book travel tickets or even cinema tickets, and do all kinds of shopping online.
- Secure and reliable
Mobile wallets are far more secure than cash payments. For starters no one can physically steal your money and to deter hackers and online payment scams, they have security features like two-factor authentication in place. Best of all they create a money trail, so you know when and how your money is being spent.
- Other benefits
To compete with each other, mobile wallets and payment apps have many additional benefits to attract customers. They can range from cashback and rewards to loyalty programs for long-term customers. Moreover, if you shop online using mobile wallets you often get good discounts and deals.