The last 5 years
have witnessed major shifts in how consumers pay for goods and services.
With penetration of smartphones and internet and E-Commerce (electronic
commerce) continually expanding their reach ,E-Wallet (electeonic
wallet) or digital wallets.
According to a new report published by
Allied Market Research, digital payment market will reach $3,338
billion, Globally, by 2022.
What is Digital Wallet ?
A Digital wallet is an electronic device
or a software which allows you to store, manage and pay electronically
using a variety of payment instruments such as credit cards, debit
cards, internet banking and digital cash. In banking terms, a digital
wallet is a type of prepaid payment instrument like your debit card.
Types of Digital Wallets
Device-based digital wallets :
These type of digital wallets use NFC (Near Field Communication)
technology to allows users to pay for purchases by waving their
NFC-capable phones or other NFC-capable devices near a contactless
reader. There is no need of physically handling over your credit or
debit card, but you need a device such as an iPhone, Apple watch, or
Samsung Phones. Apple Pay, Samsung Pay are examples of Device -based
Internet-based digital wallets :
These type of digital wallet offers
personal user accounts where a user can signup for an account and store
credit or debit card information in it for faster checkout.When
user purchase something from E-commerce website, the user need to
create an account. After this they need to sign in to their account and
used the saved payment information to pay for purchases.these
type of wallets pay for online products without providing credit or
debit cards. Google wallets, Paypal, Paytm are examples of
internet-based digital wallets.
Popular Digital Wallets
As a smartphone user it is expected to increasingly globally mobile market, mobile wallet companies such as –
1] Apple Pay :
An Apple Pay is a simple secure mobile
payment service provided by Apple Inc. It lets Apple device owners to
make payment using NFC chip. which is built into their iPhones, iPads,
and MACs. These apps let the user to add their credit and debit cards to
Apple Pay. The transaction is made using credit and debit card. Apple
Pay works latest Apple devices including iPhone 6, 6+, 7, 7+, SE and
Apple watch. The user can use Apple Pay at point-of-sale (POS) location
across the globe, Apple App store, iTunes.
Is one of the most popular and currently
used digital wallet in the world. It allows the user to exchange money
between Paypal users money transaction. it is secure to use Paypal.
Paypal allows to make user to make payment using variety of methods
including : Paypal balance, Paypal credit, bank account. Paypal is
available for both iOS and Android platforms as well as for the web.
Is another popular mobile payment services
offered by Google. User can send money to any user using the email
address and phone number. The user can simply link the debit or credit
card to their Google account. The money that is received is transferred
by bank account which is link to account. User can send money through
app, in Gmail on web(www.wallet.google.com). All financial information in Google wallet is encrypted and stored on Google protected servers.
Samsung Pay is mobile payment and digital wallet service owned by SAMSUNG.it
allows its user to store cards on their phones pay in-person at POS
location around the world. Samsung Pays use both NFC technology and
magnetic stripes for payment. These work on a hardware that work on
magnetic card readers.
Paytm is largest e-wallet provider in
India, with more than 200 million registered users. It’s fastest growing
company in the digital space. it can be used for mobile recharges,
metro rail recharges, paying utility bills such as DTH, electricity and
water.Also can be used to
purchase at grocery store, pharmacies, restaurants, ration selling
shops, petrol stations, etc,. Paytm has tied up with many companies in
categories of shopping, travels, foods, etc. Moreover users can use
Paytm for booking flight tickets, rail tickets, bus ;or send and receive
money. Paytm apps are available for iOS , Android, Windows, and
Freerecharge is simple and fast way to do
online recharges for prepaid and postpaid mobiles, data cards. You can
also pay utility bills, such as DTH, electricity bills, landline,
broadband, and gas in India for most service providers. It recently
added metro card recharges in additional features on its platform. You
can access your freerecharge account using mobile apps and web browsers.
Mobikwik is a semi-closed wallet that can
be used to recharge mobiles and pay bills. It is accepted across
numerous merchants including Dominos, eBay, etc. Top-up can be done
using debit or credit cards or netbanking. This app can be used ti send
and request money between friends and family members using mobile
numbers. Mobikwik has a mobile app.