Mobile Wallet Payments

Mobile wallet payments refer to the digital storage of payment information on a mobile device, enabling users to make electronic transactions quickly and securely. Mobile wallets, also known as e-wallets, allow users to store debit/credit card details, bank account information, loyalty cards, and digital currencies, eliminating the need to carry physical cards or cash.

These wallets operate through mobile applications and use technologies such as Near Field Communication (NFC), QR codes, or even Bluetooth to facilitate payments at retail stores, online platforms, or peer-to-peer transactions. Some popular mobile wallets include Paytm, Google Pay, PhonePe, and Apple Pay. These services are designed to enhance convenience by enabling instant, cashless payments, which are processed in real-time.

One of the major benefits of mobile wallet payments is the added layer of security through encryption and authentication mechanisms like biometric verification or PIN codes. This reduces the risk of fraud compared to traditional credit card transactions.

Mobile wallet payments also contribute to the rise of a cashless society by supporting seamless, fast, and secure transactions across various industries, including e-commerce, travel, entertainment, and bill payments. The adoption of mobile wallets has increased rapidly, especially in countries like India, where mobile wallet services like Paytm have revolutionized the digital payments landscape.

Types of Mobile Wallets:

1. Open wallets

An open wallet is used directly by a bank or through a third party. Open wallets allow customers to use the funds in the mobile wallet for making payments for transactions or withdrawing the funds deposited to the account in cash. An example of an open mobile wallet is PayPal, which allows users to make payments for in-store and online purchases and still withdraw the funds in cash.

2. Closed Wallets

Closed wallets are linked to specific merchants, and users can only use the funds to make payments for transactions initiated with the specific merchant. Users cannot use the money to make payments for transactions with other merchants and third-party service providers or withdraw the funds in cash. An example of a closed wallet is Amazon Pay.

3. Semi-closed wallets

Semi-closed mobile wallets allow users to use the funds in the wallet to make payments for transactions with multiple merchants, as long as there is an existing contract between the merchant and the mobile wallet company. Users can also withdraw the funds into a bank account. However, semi-closed wallets do not allow users to withdraw funds in cash.

Services Offered:

• Balance Enquiry
• Passbook/ Transaction history
• Add money
• Bank A/c
• All Cards
• Cash-In

Accept Money

Pay money

Another wallet (mobile no.) with same provider

Pay merchant

Bar Code reader

Manage Profile

Notifications

Funds Transfer limit:

For Users

No KYC – Rs 20,000/ month (revised from Rs 10,000 to current till 30th Dec. 2016)

Full KYC – Rs 1,00,000/- month