As many of us in India are trying to deal with the impact of Demonetization, one key question that everybody is hoping is that digitization win quickly. But have you ever wondered how can you keep you digital money safe? Or how digital currency can be carried like physical currency.
Well then it is important to know about Mobile Wallets and why it is needed.
WHAT IS MOBILE WALLET?
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| Image Credit : http://mobilemarketingwatch.com/ |
Well then it is important to know about Mobile Wallets and why it is needed.
WHAT IS MOBILE WALLET?
A physical wallet, as we know, is used to
carry physical cash, credit cards, and loyalty coupons. Mobile wallet replaces
physical wallet with secure PIN based transactions on mobile platform. It is a
virtual wallet used for paying utility bills, purchasing goods and services,
and transferring money etc. It holds details of credit/debit card, bank account
along with loyalty cards and coupon details on the mobile platform and can be
organized using a payment application.
A mobile wallet can have one or more than
one payment instruments. The payment instrument can be physically embedded in
the mobile phone itself (using NFC chip enabled mobile phones) or having remote
link to the secure payment instrument. The payment can be made by downloading
the wallet application on the smartphone or through some embedded functionality
on the smartphone. A wide range of channels like SMS, USSD, NFC and Web can be
used for making payment.
As per a research report published by Allied
Market Research, 20% more users carry their smartphone all the time in
comparison to carrying a wallet all the time. With extensive range of features
available in mobile wallet, the heavy wallet can be left at home and mobile
with wallet application can be carried instead. Consumers are now more
interested in having a single wallet with multiple payment options rather than
one financial institution providing multiple payment mechanisms. Consumers will
be able to pay everything using the smartphones.
Having multiple options for consumers to
make payments, mobile wallet enables consumers to choose the best one from a
variety of options in terms of maximizing offers, and minimizing interest rate
and convenience charges. Mobile wallet also provides additional services like
searching for products/services, obtaining receipts, displaying real time
offers. Consumers can also put in real time updates on social networking sites
and provide feedback. They can also
create wish lists on different shopping portals and can receive updates on availability.
Individual transactions are authenticated by
rules set up by service provider and are in conformance to all local
regulations. Mobile wallet is symbolic of convenience for consumers, and with
extensive range of services available, it is on its way to become a one stop
solution for the payment and shopping needs for a consumer.
SURVEY : Before Demonetization was implemented
We conducted a two stage survey before demonetization happened, mainly
targeting a 20-40 year age group customers with profession ranging from student,
Analysts to IT professional. Below are the survey findings.
- Mobile wallet is a new concept and over 80% of the respondents have never used a mobile wallet.
- For 57% users, who are aware of mobile wallet, “no extra incentive” tops the concerns regarding not using the mobile wallet. Security concerns are a close second.
- Among benefits, perceived or observed, in using a Mobile Wallet, Convenience and the ease of not carrying a physical wallet, tops the list of reasons
- Most of the users have used Paytm mobile wallet.
- 50% of the respondents have used Mobile Wallet for Bill payment. Loyalty programs and additional security will increase the mobile wallet usage
- Lack of awareness remains the top reason why Mobile wallet is still not reaching masses
Have you every used a mobile wallet? Would like to know your experience with it?
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