Making online payments in India gets super easy with these digital wallets

By Editorial Tuesday December 6, 2022

As we are moving towards innovation, the world is embracing technological advancements. When it comes to making payments, we are seeing next-generation resources and tools to ease our way of life. Earlier there used to be a barter system, which shifted to fiat currency.

The world welcomed various asset classes and strengthened our investment portfolio. As a person in modern society, I am witnessing an upholding of digital transactions coupled with digital wallets. While we can make payments and facilitate monetary transactions, these digital wallets are surely making our lives better.

With just a single tap, we can now transfer money, pay charges for any product that we purchase, pay our monthly bills and the possibilities are quite innovative. In India, payment wallets are emerging as an alternative to almost every individual for the fast processing time.

What actually means a mobile wallet?

You might wonder about the actual benefits of a mobile wallet and what it is. Basically, it is a digital wallet synced to a bank account or a credit/debit card for making payments and ensuring the protection of the data of the user.

These wallets have a strong security system that helps the user to make transactions hassle-free. It is proven that mobile wallets are more affordable and efficient than physical wallets. Records indicate that in Asia, India is at the second position in using digital payment transactions.

The use of e-wallets has helped a lot of micro and macro businesses to get paid online and leave the cash out of the equation. The Indian Government has provided mobile wallets with UPI (Unified Payments Interface), several payment banks, Aadhar Pay, and many more.

What is the system of operation for a mobile wallet?

The first thing required for a potential user is to download the mobile wallet of choice and put in the bank details, debit card or credit card details, and confirm the mobile number. With these credentials, a user can make payments using the app from the smartphone at a payment point. The digitally-backed terminal will allow the mobile wallet to make the payment with the help of NFC or Near Field Communication and successfully complete a contactless payment.

In India, how many types of mobile wallets are there?

Closed PPI is issued by a company to purchase goods and any other services from that particular company and does not allow cash withdrawals. No KYC is needed for this type and the MakeMyTrip wallet can be considered as an example.

Semi Closed PPI allows a user to buy any services or products from merchants that are on a contractual basis with the issuer for accepting any payments. It is not mandatory to provide KYC and Mobikwik is an example.

Open PPI enables a user to buy services along with facilities like withdrawing cash from banks and ATMs and also allows the transfer of funds. In this type, KYC is required and Paytm Payments Bank can be set as an example.

How secure are mobile wallets?

A user needs to be careful about not losing the phone or preventing it from getting stolen. It is always advisable to use two-factor authentication which comes with an identity number personalized for the user or a fingerprint required to unlock the smartphone. You should understand that smartphones are the gateway to many possibilities nowadays.

As a user, you should use an app to locate your phone and erase all your data remotely, before any thief gets their hands on it. When you notice any unauthorized charges from the account, you should immediately change your password and inform your bank about the situation.

13 mobile wallets or e-wallets in India :

Paytm– Paytm has more than 100 million downloads recorded on Google Play Store and stands as one of the largest online payment transaction platforms in our country. In India, Paytm has gathered quite a reputation for loads of features it offers its users like quick transactions and secured mobile wallets.

Paytm was launched in India in 2010 where users can fill money into their digital wallet and make transactions and can also make payments directly from the user’s bank. The platform also has an e-commerce division. Users can pay bills, transfer money and get impressive cashbacks in return along with many other features.

Google Pay– Google Pay also has more than 100 million downloads from the Play Store. Google Pay has several cashback features and ensures quick processing times and fast payments. Google Pay is connected to a user’s bank account and can make swift and fast payments without any necessity to fill the digital wallet.

The server is secure and the app gets all the timely updates for the users to experience new features. The platform also has games that create a fun element while fetching cashbacks.

BHIM Axis Pay– BHIM Axis Pay has more than 5 million downloads from the Google Play Store. BHIM or Bharat Interface for Money was created by the National Payments Corporation of India (NPCI). The mobile wallet was launched in December of 2016.

The BHIM Axis Pay is connected with the bank account of the user and allows direct payment with the help of a user-chosen UPI Pin. Both Axis Bank account holders and other bank account holders can use this app.

PhonePe– PhonePe has more than 100 million downloads from the Play Store. Being launched in 2015, PhonePe is now associated with Flipkart.

Bill payments, fund transfers, smartphone recharges, and many other features can be done on PhonePe. PhonePe is one of the fastest and safest digital payment platforms in India.

MobiKwik– MobiKwik has more than 50 million downloads on Google Play Store. The mobile wallet was first introduced in 2009, where the priority task was to make mobile recharges along with bill payments.

MobiKwik has a user count of about 32 million. There is a unique feature in MobiKwik which is the expense tracker that informs the users by sharing data about their monthly expenses.

Yono (State Bank of India)– Yono has recorded more than 50 million downloads from the Play Store app by Google. The app was launched by the State Bank of India for making seamless bill payments, booking tickets, shopping, and many other things.

The mobile wallet is available for users that can access several features like setting reminders, checking mini statements, making payments, and several other features.

Citi MasterPass– Citi MasterPass has more than 1 million downloads from the Play Store.

The mobile wallet is launched with the collaborated effort of CitiBank and Mastercard and has a global reach catered to secure payment transactions. The users can get introduced to more than 250,000 merchants in the e-commerce industry.

ICICI Pockets– ICICI Pockets recorded more than 5 million downloads from Google Play Store. The digital wallet is very convenient for the users and uses a VISA card that is virtually enabled.

This allows the users to proceed with transactions on any digital platform in India. The app also offers interesting deals from partnered brands.

HDFC Payzapp– The HDFC Payzapp has more than 10 million downloads recorded from Google Play Store. The app is introduced by HDFC Bank that has a hassle-free one-tap feature to make payments and transactions.

It allows making bill payments, DTH recharges, booking flight tickets after comparison, shopping, and many more.

Amazon Pay– Amazon Pay has more than 33 million users and was launched back in 2017 in India. Globally, Amazon Pay has been operational since 2007. The mobile wallet focuses on customers on Amazon and gives loads of cashbacks when used to pay for products on the Amazon website.

Amazon Pay is fast, secure, and reliable for making payments.

Samsung Pay– Samsung Pay is owned by Samsung and was launched in 2015. Digital wallets are considered to be one of the best online payment transaction apps.

The app offers several cashbacks to its users and also offers impeccable security. Samsung Pay can be used with card readers like magnetic strips and many more.

Apple Pay– Apple Pay is a digital wallet owned by Apple Corporation. The mobile wallet was launched in 2014 and it supports all the essential credit and debit cards.

The Touch ID along with Face ID allows a solid structure of security for Apple users using this digital wallet. Apple Pay is operational in 60 countries and more.

Whatsapp Pay– Whatsapp Pay was introduced in 2018 for users to make transactions through the Whatsapp application.

Paying with Whatsapp Pay is as simple as sending chat messages. The platform also provides a lot of cashbacks along with the feature of sending money along with receiving.

What are the perks of mobile wallets?

There are several advantages of using a mobile wallet that includes a one-click pay. The digital wallet can directly pay with the help of bank information and also add funds to your wallet. These e-wallets are operational at any time and anywhere and just require an internet connection.

Mobile wallets can be accessed on your smartphone and personal computing devices with proper authentication methods. The security that comes with these apps followed by rewards, cashbacks, and loyalty points are a strong thing to consider while using these e-wallets.

Are there any disadvantages of mobile wallets ?

There can be a limit on merchants who are collaborating with your mobile wallets. Paytm also limits its wallet to have a maximum amount of Rs. 20,000 stored in it.

There can be moments when the server is down and transactions might not be processed until the issue is fixed by the apps. An individual needs to have a smartphone to witness these experiences and sometimes poor income households might not afford a smartphone.

We think that due to better accessibility and the internet, more individuals will shift to mobile wallets and will embrace the digital revolution of India. The attractive cashbacks and offers are a strong retaining factor for these apps. After all, technology is there to make our lives easier and these mobile wallets are definitely a contributing factor to a better life.