what is all about mobile wallet?
Post on 12-Jan-2017
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Mobile Wallet?By Devashish U Pradhan
In reference with Indian ContextWhat is Mobile Wallet?Mobile Wallet EcosystemTypes of Mobile Wallet.Features of Mobile Wallet.How Mobile Wallet works.Dos & Donts of Mobile Wallet.Indian Mobile Wallet Apps.Few Apps comparison.
In general, the term mobile wallet referred to digital wallet, or wallet passes or wallet card or mobile wallet passes.Think of it as the digital equivalent of all the everyday things included in a physical wallet like loyalty cards, coupons, business cards, tickets, credit cards and more.Mobile wallets are rarely forgotten because they're stored on your consumers smart phone. They are also very effective and efficient for a business because a wallet can be easily created, managed and updated, allowing a business to significantly reduce the cost of a traditional (physical) card program by 10x-25x.4What is Mobile Wallet?
A digital wallet is a software component that allows a user to make an electronic payment with a financial instrument and hides the low-level details of executing the payment protocol that is used to make the payment. A digital wallet allows a user to make an electronic payment with a financial instrument (such as a credit card or digital cash), and hides the low-level details of executing the payment protocol that is used to make the payment. It authenticates the consumer through the use of digital certificates or other encryption methods, stores and transfers value, and secure the payment process from the consumer to the merchant. It can hold other than payments like Bank account details, Credit cards, Gift coupons and reward certificates, Loyalty cards Offers.5Mobile Wallet - Technically
6Mobile Passes cont..
7Mobile Wallet - Eco System
There are four types of mobile wallets in India Open - Open wallets are the ones that allow you to buy good and services, withdraw cash at ATMs or banks and transfer funds. These services can only be jointly launched with a bank. M-Pesa by Vodafone and ICICI is one such example. Apart from the usual merchant payments, it also allows you to send money to any mobile number bank account. Semi-Open -Airtel Money is a semi-open wallet, which allows you to transact with merchants that have a contract with Airtel. You can't withdraw cash or get it back. You'll have to spend what you load. Semi-Closed - Wallets like PayTM, which do not permit cash withdrawal or redemption, but allow you to buy goods and services at listed merchants and perform financial services at listed locations.Closed. - Which are quite popular with e-commerce companies, where a certain amount of money is locked with the merchant in case of a cancellation or return of the order, or gift cards. 8Types of Mobile Wallet
It is quick, simple to download and register. (Mobile App is Free)It offers quick re-charge and payment of utility bills and shopping from website.You can get discounts while shoppingCoupons which can be redeemed while shopping. These are delivered to your email id or mobile wallet.If you have promo code you can enter and avail discounts and cash backs.In case of refunds, such refund amount is credited to your mobile wallet where you can use later on for other payments.9Features of Mobile Wallet.
How Mobile Wallet works.ChartProcess
Smart phone carefully encrypts your account information (notably NOT your bank, card or other payment information), which the POSThen reads through near field communication (NFC). NFC is technology that enables devices to establish a radio communication with each other when they are within a certain small distance.The POS does not read the information, rather, it sends it first to the mobile wallet provider, who de-encrypts the information, sees which account youre looking to access, and checks your identifying information.Once the provider has satisfactorily proven you are who you say you are, they send along your card information to your payment processor who is the one to actually access your bank information and request that your bank send the money back to them.The payment processor then sends your money along to the stores bank and alerts the POS that the transaction has been completed.10
A digital wallet has a software and information component. The software provides security and encryption for the personal information and for the actual transaction.Normally, digital wallets are stored on the client side and are easily self- maintained and fully compatible with most e-commerce Web sites. A server-side digital wallet, also known as a thin wallet, is one that an organization creates for and about you and maintains on its servers. Server-side digital wallets are gaining popularity among major retailers due to the security, efficiency, and added utility it provides to the end- user, which increases their enjoyment of their overall purchase. The information component is basically a database of user-inputted information. This information consists of your shipping address, billing address, payment methods (including credit card numbers, expiry dates, and security numbers), and other information11How Mobile Wallet work Tech.
Sender Mobile sends request to Transfer Money. System checks available balance in Senders A/C from that particular Bank. It transfers money from senders A/C to receivers A/C. After a successful money transfer it sends a confirmation notification (SMS/Email) to receiver. Money can be send and/or receive from PayPoints.12Steps Involve
Dos & Donts of Mobile Wallet.DosDontsUse strong password: Use a mix of numbers, characters, capital letter alphabet, and alphanumeric
Download apps from authentic sources: Preferably from the company site, not third party sources
Check your mobile wallet statement carefully: Hackers dont siphon off all your money in one go, they take small amounts.
Dont use public Wi-Fi: Hackers can snoop into the connection to steal login credentials
Dont fall for cash-back offers: Dont merely go for the wallet that offers cash-back. Check the RBI website to find out if the mobile wallet company has a license
Dont add too much money: Even in the case of a hack, the amount you lose will be less
Dont save card details on mobile wallets: Every time you transact, make sure you uncheck the box that says, save your card for future use13
PayTM is one of the leading digital walletsMobikwik is another versatile app that allows you to pay or transfer money using the mobile number....FreeCharge....State Bank Buddy. ...HDFC PayZapp....ICICI Pockets....LIME....PhonePe. And many more.14Indian Mobile Wallet Apps.
Mobile ApplicationWalletUPIB T Send On Mobile Airtel MoneyYesNoYesYesAxis Bank LimeYesNoNoNoCitrus PayYesNoNoYesFreechargeYesNoNoNoHDFC PayZappNoNoNoYesICICI PocketsYesYesYesYesJio MoneyYesNoNoNoMobikwikYesYesYesYesmRupeeYesNoNoYesOxigen WalletYesNoYesYesPaytmYesNoYesYesPhonePeNoYesYesYesSBI BuddyYesNoNoYesTrupayNoYesYesYesVodafone M-PesaYesYesYesYes15Few M Wallet Apps comparison
16Still to come
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