Introduction to e-wallet
E-wallet stands for electronic wallet.
E-wallets are payment method where transactions are made online on a smartphone or computer.
According to the Reserve Bank of India, e-wallet comes under Prepaid Payment Instruments (PPIs).
With the advancement of mobile phone technologies and the development of payment apps, people are switching from the traditional method of payment to digital mode of payment.
REASONS FOR THE SHIFT
- Demonetization –
Demonetization gave a boost to the growth of e-wallets in India. The Prime Minister’s surgical strike on black money was meant to remove corruption from the country but, this move, fast-tracked the growth of digital transactions. Many mobile wallet providers became successful. Many mobile wallet apps emerged like Paytm, PhonePe, free charge, Mobikwik, etc.
- Cashback Offers –
The tempting cashback offers on the deals attract many customers. You cannot get these offers if your mode of payment is through cash. Mobile wallets like Paytm, PhonePe has given even 100% cashback offers on some deals.
- Ease of money transfer from one bank account to other
This feature is added recently. Within a few clicks, you can transfer money from one bank account to other just by using the user’s mobile number. But you need to link your bank account to your E-wallet and need to complete the KYC (know your customer) process. Google’s Tez app, BHIM lets you do this. Even Whatsapp has introduced payment features.
- Track the Expenditure –
Here, you can easily track your expenditure as every sum spent on your e-wallet is recorded automatically.
- Convenience –
E-wallets offer convenience to users. With just a single tap your money can be transferred from one account to other.
Some popular e-wallets
There are many e-wallets used in India like – Paytm, Phonepe powered by Yes Bank, OLAmoney, Bhim app, Future pay, Idea money, Airtel money, Mobikwik, Pockets by ICICI Bank, State Bank’s Buddy, Jiomoney by Reliance, Idea money, etc.
Here are some popular e-wallets:
Paytm is the most popular among e-wallet. Payment through Paytm is accepted almost everywhere in India. Paytm can be used to pay for mobile prepaid and post-paid recharges, DTH recharge, Utility payments like electricity, gas, and water, Ola and Uber payments, metro card recharge, air, bus, train and flight tickets, etc. There is also a scan and pay feature for the convenience of users as well as merchants.
Recently, Paytm launched Paytm Payment Banks and Paytm mall app to attract more customers.
It is India’s first non-bank wallet. It allows its user to transfer money for mobile and DTH recharge, utility bill payments, travel booking, movie tickets booking, gift card purchase and virtual visa. It appointed Sachin Tendulkar as its brand ambassador.
Just like Paytm Phonepe can also be used to pay for mobile recharges, DTH recharge, electricity, and water bill payments and also have a scan and pay feature. You can directly transfer money to your bank account linked to PhonePe.
Chiller is the first multibank payment application. Today, it has collaborated with 52 bank – State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, etc. It is used to send or receive money from one bank account to other directly, by using the user’s mobile number.
BHIM (GOVERNMENT INITIATIVE TOWARDS CASHLESS INDIA)
Bharat Interface for money (BHIM) is a digital payment app. It is an initiative of the government of India to establish a cashless economy. This app can be used for money transfer directly from one bank account to other. BHIM UPI lets you do a quick and easy money transfer.
The growth of e-wallet in India is at a rapid pace. The emergence of mobile wallet apps is gradually leading to the foundation of a cashless India. This growth became rapid after November 8, 2016, the day when Indian currency underwent demonetization. So, we can say that use of e-wallet is gradually making our economy cashless.