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Updated on March 13, 2015

Mobile Wallet

Credit cards and debit cards, which significantly reduced the need to carry “real” money, have the disadvantage of theft or loss. This has contributed to the increase in scope of mobile wallets.

A mobile wallet makes everyday bill payments and other money transfers easy and secure by using a mobile phone. It can also be used to receive and pay regular payments, enabling a user-friendly interface to its consumers. The mobile wallet module empowers financial institutions and banks to connect consumers in rural areas and increase their reach at a lower cost.

These following advantages offered by mobile wallets are increasing their growth and adoption level over plastic money and mobile banking.

The technology used in Mobile wallet is Near-Field Communication (NFC) chips inside mobile smart phones and tablets to transmit payment information. When a customer is ready to pay using a mobile wallet, they open an app on their smart phone or other device.

Mobile Wallet Concept


There are multiple ways in which you can use the mobile money stored in your digital wallet, such as:

• You can transfer the money to your physical bank account

• You can recharge your mobile phone

• You can settle your phone bill, utility bill

• You can book a travel package, air ticket, and movie ticket.

• You can do shopping transactions both online and offline

Mobile Wallet Transaction


All you need to do is to transfer money via electronic means is a credit card or a debit card or Net banking. Some operators also make provision for cash pay.


One can access the stash in mobile wallet through an app in your cell phone or online through the Net.


All you need to have is a simple hand set which enables you to send and receive SMS. You then need to sign up with a mobile wallet service provider.

Your account to be set up requires:

(i) A user name and

(ii) A password or a PIN (Personal Identity Number) code

(iii) A mobile number to attach to attach to your user ID. The service provider uses this number to authenticate your ID & will send SMS alerts when required. Note: you can link only one mobile number to one user ID.


MobiKwik - MobiKwik Wallet is a prepaid financial instrument approved by Reserve Bank of India. It allows Indian consumers to store money in a virtual wallet and then use it across channels (mobile, desktop, tab) to pay merchants

Oxigen Services

Oxigen Services continues to lead the industry in the Recharges, Money Transfer & Bill Payments space. Oxigen empowers many large format retail chains, banks portals, mobile wallets, wapsites and government portals, to enable them for their own customers to make easy merchant payments.


Paytm is India's largest mobile commerce platform. Paytm started by offering mobile recharge and utility bill payments and today it offers a full marketplace to consumers on its mobile apps. We have over 20mn registered users.


ZipCash is a mobile voucher loaded on your mobile phone, which can be used for shopping online, paying your utility bills, buying prepaid mobile talktime/ DTH recharges, buying mVouchers for other Retailers and as well as for various exciting deals & offers.


Huge potential of Mobile Wallet is still untapped despite of millions of cellphone connections, the concept of mobile wallet will take some time to be in vogue in India as people are still nescient of its larger benefits.

"People do not understand the larger concept. Mobile wallet is complex software, where multiple players can play," said technology evangelist Sam Pitroda, credited for India's telecom revolution in the late 1980s and1990s.

"I really wanted to create a leather wallet metaphor on mobile phone — one that gives all the functionalities I get in leather wallet. It has four phases — mobile banking, mobile payment, mobile commerce and mobile transaction," Pitroda told IANS.


It Slims Your Wallet - If you don’t like carrying around stacks of credit cards and other documents, a digital wallet is a great way to slim down while still having your important information on hand.

Purchases are More Convenient - While it’s certainly convenient to save space in your pocket, digital wallets offer more convenience than that. Digital wallet users can take advantage of their devices’ location capabilities and receive digital coupons based on where they’re shopping.

Budgeting Has Never Been Easier - With the rise of digital wallets comes the incredible concept of digitizing your budget, too. No more recording transactions by hand, saving receipts, or manually entering your expenses and income into computer programs. Now you can link your wallet directly to a budgeting app that does all the work for you.


If You Run Out of Battery, You Can’t Make Purchases - Here’s the problem - A traditional wallet doesn’t run out of battery. If you have your cards on you, you can make a purchase. However, using your Smartphone as a digital wallet can prove problematic when the battery is dead.

You Can Only Purchase From Compatible Retailers - If your idea of a digital wallet is using your mobile devices near field communication (NFC), then you can only make purchases from a retailer with a POS terminal. Since these aren’t widely used yet, you might still have to carry around your traditional wallet for a few years before you can completely toss it out.

There are Still Safety Concerns - While certain digital wallet companies have security measures in place, it’s still not clear how safe digital wallet are for making purchases in brick-and-mortar stores. At the same time, there are concerns about how hackers might get a hold of your information with NFC since you’re transmitting your data wirelessly.


Mobile wallets are still growing in popularity,however the biggest hurdle is still today there are not very strong and compelling reasons for customer to use it,its in a nascent stage and people look at it as just another gadget for techno freaks. The probabilities are in the near future we’ll likely see more retailers switching to a digital wallet concept so much that the digital wallet makes the traditional wallet something of the ancient past. Weighing the pros and cons is up to the user like paypal's mobile solution is still in its early testing phase, but as popularity grows, the disadvantages will soon become of little concern.


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