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Pros and Cons of E- Wallet

 

“There were times when money did not have any form. It took form via metal, paper and now plastic.                                 Soon, our money would be nothing but simplified binary equations. “

E-wallet is now money on the move. E-wallets such as PayTM, MobiKwik, Freecharge and others are achieving ground in a country where a huge chunk of people does not have an account in a bank but have mobile phones.

The e-wallet market is about to hit $4.4 billion by the year 2022 with an annual growth rate of over 150 % from 2017-22 only because of rise in smart phones by the users, increasing use internet connectivity and ease of use. And especially due to the demonetisation of Rs500 and Rs1000 note, there is a boost in the digital wallet technology. After the announcement by Narendra Modi regarding demonetised notes. Paytm has increased 12 fold rises after few hours of its launch in India. 

Recently even Amazon and Paypal have decided to launch their own dedicated ewallet services in India.

Even the Banks like ICICI, HDFC and SBI have its own Digital wallet apps. The biggest and best digital wallets are Apple Pay, Google wallet, PayPal and Amazon Pay which are all on board with E-wallet technology. In fact other e-commerce businesses such as restaurant finder Zomato or Ola and Uber cabs, Many travels sites and BookMyShow have also come up with their own e-wallets.

The question arises, how do you get one?

You just have to log on to the sites that may be a telecom services, online stores, recharge portals, travels , restaurants to even sites selling furniture that use e-wallet as an alternative payment option.

Like PayPal Digital wallet allows you to shop anywhere at any time, transfer funds or money even abroad and many more options by just clicking on an App. Similarly MobiKwik, Paytm, and FreeCharge are accepted at toll plazas in Mumbai and FreeCharge is an gives an option for paying police challans. MobiKwik is also accepted by IRCTC and Paytm also supports flight tickets within the app. Thus, currently Reliance Jio plans to get 10 million users on board for its Jio Money solution and through Jio money app they can easily recharge and avail best offers.

If you and your friend or relative has a Paytm or MobiKwik or PayPal account, you can easily transfer money by entering their mobile number and amount. You also have the option if you want to transfer money straight to someone’s bank account. Thus, E-wallet is not a complicated platform; it is very easy to use and ensures best security features.

How to use E-wallet or a Digital Wallet?

Visit that site where you want to use e-wallet service. Sign in with your Email-ID and then look for E-wallet option and create a new wallet for yourself. Then after buying something from the site, you can use e-wallet to redeem as much cash as required and transfer money to the account by using online transfer or debit card/credit card. If in case your balance in e-wallet falls short, then you can use other payment options stated there.

All you need to know about E-wallet is its pros and cons.

  1. Convenient

While carrying lot of cash and wallet in your pocket covers lot of space and is even unsecure and if you do not like to carry stacks like credit cards or other document then digital wallets are good way to slim down and offer more convenience than that. Users can make a purchase instantly with a simple tap or scan of their mobile device.  Apart from your credit card details, they can also store loyalty cards and coupons. For instance, Urban Airship assists companies to convert these options into digital to help customers go paperless. By the use of Digital wallets an experience of purchasing items becomes faster and easier.

  1. Offers variety of options

The competition in Digital wallets is increasing and thus it provides lot of options for the customers such as Mobikwik works similar to the Paytm in terms of recharge and payment. MobiKwik has partners such as, Grofers, Big Basket, Makemytrip, IndiGo, Cleartrip, and Yatra etc.

Freecharge allows you to use Digital cash in number of places such as train tickets, bus tickets, gas, water, electricity etc. PayPal also has partners such a s ebay, best buy, southwest and many more. Thus, E-wallets offers variety of options and saves your time.

  1. Security

E-wallets ensure high security features for the users by considering that you authorize every transaction with a PIN or password or fingerprint scanner. Furthermore while paying with a e-wallet, you need not disclose your debit/credit card details to anyone, online or offline.

  1. Offers

Moreover, e-wallet companies regularly offer eye-catching discounts by using their wallet for making payments. For example if you use your e-wallets for buying a fuel then you will be allowed a discount of 0.75% on the purchase amount.

Cons:

  1. Limited retailers

No doubt that plethora of people use cashless payment modes across the country but number of retailers still not added a digital wallet to their phones. And even there are many online stores who do not provide payment through e-wallets and because of which the customer is required to use debit/credit card details.

  1. Habit of Smartphone’s

You can make purchases or avail services as long as you have your phone in a working condition available. If your phone battery dies or it is stolen then you lose out on your digital wallet cash.

  1. Charges

There are some apps which might charge you for doing a transaction such as Paytm generally provide all the offers that are cash backs that can only be transferred to the bank after paying a fee.

The trend of E-wallet is popping up and up in upcoming years especially after the demonetisation of Rs 500/- and Rs 1000/- notes by Prime minister of the country. People are shifting from their physical wallets to digital wallets which provide more security and advance features. Thus, people find E-Wallet more comfortable and easy to use technology.