In this article we are going to discuss what is a mobile wallet and how does it work? So let’s start with what is a mobile wallet?
What Is Mobile Wallet?
A mobile wallet is one kind of payment service, with the help of these people can transfer or receive money by using business and mobile phones.
Mobile wallet is also known as mobile money or mobile money transfer.
This is also a one e-commerce model that is designed or used by with the help of a mobile phone because of its easy accessibility.
In simple words, the mobile wallet is the same as the bank account which is opened on a mobile phone. In which money stores as digital money. It is also a virtual account like a simple bank account.
Like in bank money transfer will be done by using the documents given by you,
same as in mobile wallet transaction can be done based on your mobile number.
For example, you go to the restaurants,
or buy any product from the market you can make payment by using a mobile wallet.
But this is possible only when they have provided the mobile wallet service.
How Does It Works?
- The mobile wallet works on the basic principle of transferring money from one account to another account.
- For this, both the giver and taker should have a mobile wallet on their mobile phone.
- As we said above mobile wallet is a virtual account in which you can add money using a debit or credit card or bank account.
- After that whenever you buy the product and,
- If the product company accepts the mobile wallet payment you can make payment through the money that is added in your mobile wallet.
- After adding money to the mobile phone instead of using a credit card you can make payment through your mobile tablet or smartwatch.
The mobile wallet is of two kinds.
Prepaid Wallet: There is a need to charge this wallet so you can make an online payment using this wallet.
Postpaid Wallet: In this kind of wallet there is no need to charge, In this wallet money will be debited from your bank account, when you will spending money from your wallet it will be automatically debited from your bank account.
Types Of Mobile Wallet
A mobile wallet is more than one type. There are three types of mobile wallet available in India.
- Open Wallet: In this kind of wallet at the time of buying a product, you can debit the cash in hand, that means by this wallet you can take the money from ATM or another medium. For example m -pesa of Voda Phone.
- Semi-Closed Wallet: Through this wallet, you can make online shopping or takes any kind of service, but you can’t debit money in cash in hand. For Example Paytm.
- Closed Wallet: In this type of wallet when the service provider company gives some money to their user’s wallet, then this money can be used only to buy only the product of that company. For Example: Flipkart, Snapdeal, Amazon.
How To Use Mobile Wallet?
- First of all to use the mobile wallet you have to make an account on your wallet.
- After that in your mobile wallet, you have to add some money by using your bank account, debit card, or credit card.
- Once the money has been added to your mobile wallet you can buy products or taking any benefits of service.
- Only you have to do this three-step :
- Register in the mobile wallet.
- Add money from your bank account or debit or credit card.
- Then you can start doing the payment.
Advantages Of Mobile Wallet
- Your wallet can be lost or it can be steel by any people but the mobile wallet cannot be lost or stolen.
- In the mobile wallet, you can also keep money according to your need,
- The benefit of this is that through this you have not to reveal information of your credit, debit or bank account in public.
- To make payment by manually we have to face the problem of the coin of small denomination,
- But by using a mobile wallet you can make payment of any small coin of the denomination.
- If you use a mobile wallet there is no need to take cash with you.
- And also solve the problem of taking ATM with you to make payment.
Disadvantages Of Mobile Wallet
- First of all to use a mobile wallet you have to required fast internet speed.
- This service is only beneficial for those who are technology-friendly.
- Because of a lack of true information very few businessmen or people use this mobile wallet service.
- In a mobile wallet, there is a limitation of deposit the money or spending the money.
So this is all about the mobile wallet, hope you will understand, what is a mobile wallet, how does it work? , Its advantages, disadvantages and all thing.