Mobile Wallets (Download PDF)

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Mobile wallets are digital versions of traditional wallets carried in their pocket. Among variations, some can hold digital information about credit and debit cards for making payments, store coupons, loyalty programs points, and specific information about personal identity and more.

Many companies are jumping into the mobile payments space- on both the paying and receiving sides of the transaction-and new innovators are continuously changing the industry.

Mobile Wallets

How Does a Mobile Wallet Work?

  1. Download the mobile wallet app.
  2. Add credit card or debit card information to the mobile wallet.
  3. Check out at participating merchants, through mobile wallet.

Types of Wallets

  • There are four types of mobile wallets in India
    • Open
    • Semi-open
    • Semi-closed
    • Closed
  • Open wallets allow buying goods and services, withdrawing cash at ATMs or banks and transferring funds.
  • Services jointly launched with a bank- M-Pesa by Vodafone and ICICI is one such example. Apart from the usual merchant payments, it also allows sending money to any mobile number bank account.
  • Airtel Money is a semi-open wallet, allowing transaction with contracted merchants. It does not allow withdrawing cash.
  • Closed accounts are quite popular with e-commerce companies- a certain amount of money locks with the merchant in case of a cancellation or return of the order, or gift cards.
  • Semi-closed wallets like PayTM do not permit cash withdrawal or redemption, but allow buying goods and services at listed merchants and perform financial services at listed locations.

Top Mobile Wallets in India

Citrus pay, FreeCharge, mobikwik, mobile wallets, mRupee, oxigen, paytm

- Published/Last Modified on: November 15, 2016

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