The globe is seen slowly paving its way towards a cashless society. From invoices to cards and now to mobile wallets, this significant transformation has reduced the weights of bulky wallets. We can pay for any product, transfer money, make bill payments, and almost everything in the comfort of our place. The top 10 mobile wallets in India have made online transactions of money easy and fast, with its one-tap feature and quick processing, all at one go.
India ranks 2nd highest in Asia Pacific for digital payment adoption.
What is a Mobile Wallet?
A mobile wallet is a digital wallet that uses a bank account or credit/debit card to make payments seamlessly while securing the data of the user. They are designed to enable secured transactions with a hassle-free process, with reduced fraud and this method of online payment has proved to be more economical as compared to other physical wallets. These can be accessed from the play-store or app-store, and make an account with the mobile wallet provider.
Since Demonetization hit the Indian Economy harshly, then also Government promoted the use of these wallets and since then the user base of these e-wallets has been increasing significantly. Many digital wallet by Indian Government have been given to citizens like UPI, BHIM, Aadhaar Pay and Payment Banks. Yet according to an estimate, the India mobile wallet industry is set to grow by 150% next year, with the transactions amounting to $4.4 billion.
Types Of Mobile Wallets In India
| Closed PPI | Semi-Closed PPI | Open PPI |
|---|---|---|
| Issued by a company to buy goods and services only from that company; it does not permit cash withdrawals or redemptions. | Can be used to buy goods and services from merchants that have a contract with the Issuer to accept the payment instrument; it does not permit cash withdrawals or redemptions. | Allows a user to buy goods and services, withdraw cash at ATMs or banks, and transfer funds. |
| No KYC required | No As Such compulsion for KYC | KYC is Required |
| Makemytrip Wallet | Mobikwik | PayTM Payment bank |
Top 10 Mobile Wallets In India
1. PayTM
One of the largest online commerce platforms in India offers its customers a mobile wallet to store money and make quick transactions. PayTM was launched in 2010 which basicallyworks on a semi-closed model. Users can load money and make payments to merchants. E-Commerce is an already benefit of it, but despite that, you can make bill payments, transfer money, and avail services of entertainment, travel, and cashback. PayTM is accepted almost everywhere and also they have merchandised itself with educational institutes too. With this, parents can pay their child’s feet rather than going with cash or cheques.
Number of installs: 200 Million (or 20 crores) on Android Play Store.
2. Google Pay
It was formerly known as Tez and for obvious reasons, it gained its user base really quick, in spite of being a late entrant in the mobile wallet industry. It works with your existing bank account, which already means that your money is safe with the bank and no issues of recharging your wallet every month. Send or receive money from your friend directly to your bank account. There is also no such issues of doing with adding KYC.
Number of installs: 100,000,000+ (100 Million or 10 crore) on Android Play Store
3. BHIM Axis Pay
BHIM (Bharat Interface for Money) is a mobile wallet app developed by National Payments Corporation of India (NPCI), based on Unified Payment Interface (UPI). Launched in December 2016, it is intended to facilitate e-payments directly through banks. Users register their bank account with BHIM and set a UPI PIN for the bank account. The Mobile Number is then the permanent address and they can start transacting. User can pay their friends, merchants, and requested payments.
Number of installs: 1,000,000+ (1 Million or 0.1 crore) on Android Play Store
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4. PhonePe
Launched in 2015 which is now a part of Flipkart. From UPI Payments to mobile recharges, money transfers to online bill payments, this can be done easily on PhonePe. With a good user interface, it has offered the safest and fastest online transaction experience in India.
Number of installs: 100,000,000+ (100 Million or 10 crore) on Android Play Store
5. Mobikwik
Mobikwik was launched in 2009 with its key proposition in Recharge and Bill payments. It’s one of the independent mobile payment networks that has a user base of 32 billion. This e-wallet lets its users add money using debit cards, credit cards, net banking, and even doorstep cash services. One of the unique features it has offered its users is ‘expense tracker’, basically which allows users to set a budget for expenses via SMS data to analyze and control the expenditure.
Number of installs: 10,000,000+ (10 Million or 1 crore) on Android Play Store
6. Yono (SBI)
This application was launched by the State Bank of India to let users transfer money to other users, pay bills, recharges, book tickets, shopping, and travel. This has offered its mobile wallet services in 13 languages and the best part is, it is also available to non-SBI customers. It taps into the special feature where-in it allows its users to set reminders for dues, money transfers, and view mini-statement for the transactions done already.
Number of installs: 10,000,000+ (10 Million or 1 crore) on Android Play Store
7. Citi MasterPass
Citi MasterPass was launched recently by Citi Bank India and MasterCard. Moreover, this is one of India’s first global outreach in terms of digital wallets for faster and secure shopping. Citi Bank debit and Master card customers become the first in this country to shop at more than 250,000 e-commerce merchants. It has ensured fast checkout with a single tap and stores all credit, debit, prepaid, and shipping details.
8. ICICI Pockets
It’s a digital bank which offers a mobile wallet for its users. It has provided the convenience of using any bank account in India to fund your mobile wallet and pay for transactions. It basically uses a virtual VISA card that enables its users to transact on any website or mobile application in India and provides exclusive deals or packages from associated brands.
Number of installs: 5,000,000+ (5 Million or 0.5 crore) on Android Play Store
9. HDFC PayZapp
PayZapp is a complete payment solution which has a one-tap feature and you can pay easily. Not only it lets you recharge your phone or send money but also your DTH and data cards, pay utility bills, compare book flight tickets, trains, hotels and, shops.
Number of installs: 10,000,000+ (10 Million or 1 crore) on Android Play Store
10. Amazon Pay
Owned by Amazon, this online payment processing service was launched in 2017 in India (globally- 2007). Amazon Pay has, let, focussed its customers more on Amazon and so it gives its users the option to pay with their Amazon accounts on external merchant websites, including apps like BigBazaar etc. with Amazon Pay, you get to shop on Amazon with number of cashback and discounts with fast shipping services. Recently, Amazon Pay got tied up with one of the fintech companies, for instance, Zest Money to enable no-cost EMI payment options. The application has also made it easier for buyers to buy products on Amazon and pay later via affordable monthly instalments.
Number of installs: Undisclosed
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Advantages Of Mobile Wallets
1. One-Click Pay
This is one of the most convenient ways to make payments, since user can pay via such wallets. The mobile wallet exactly does is that it takes the information of your card(credit/debit) and make payments directly or add money in your wallet. This has offered the easy accessibility to users.
2. Multiple Features and Uses
With easy accessibility, it can be used anytime, anywhere. These mobile wallets can be used in multiple ways in a fraction of time, it’s just that you need a proper internet connection to your device. Also, your single mobile wallet account can be accessed on any of your devices like laptops, PC, or smartphones with authenticated verification. You can make your payments anytime and at any time.
3. Robust Security Features
Mobile wallets have tried hard to provide extensive safety and security to store only. Almost more than half of the population have shifted from leather wallets to e-wallets for protection to their money. Mobile wallets have also reduced the chance of daily theft or losing cash. It comes with the feature of robust security to keep all the financial transactions safe and secure.
4. Several Benefits
They come up with several other benefits like loyalty programs, cashback, rewards, shopping benefits, and many more, so that their customers stay happy. Simultaneously, users can also save money through heavy discounts and offers.
Mobile Wallet vs Digital Wallet
| Mobile Wallet | Digital Wallet |
|---|---|
| Mobile wallets are payment apps housed on mobile devices, like smartphones and wearables. | Consumers using digital wallets, may or may not interact with them on their smartphones. |
| Consumers mostly use a mobile wallet for in-person transactions. | Consumers mostly use a digital wallet for online shopping or purchases. |
| Some of the most popular mobile wallets are Apple pay, Samsung pay, etc. | Some of the most popular digital wallets are Paytm, Paypal, etc. |
Limitations Of Mobile Wallets In India
- A limit is set on the amount that you can deposit in your mobile wallet. For instance, Paytm allows amount of ₹20,000 in its wallet.
- The number of merchants listed or having a tie-up with these wallets is limited. In that case, you would always need to carry some cash in urgency.
- Sometimes, Infrastructure issues stands for a lot of lost transactions or common ‘server down’ problems.
- Few times, some fraud calls can also cause a possibility of a mobile theft where your personal information is compromised
- One of the major concern is that a person needs a smartphone to make online transactions possible and that too, with good internet connectivity. This alone has stand a major limit to many poor families, who still carry cash in their pockets.
More than 40% of respondents used a Smartphone in India.
While these large numbers and large user-base indicate the growing need for secure, faster and efficient transaction methods for the online marketplace. Regardless of what we’ve seen and read, mobile wallets in India have outweighed its concerns. The use of e-wallets has constantly increased due to obvious reasons and its shocking offers. Mobile wallets continue to gain prominence in smartphones and laptops across the globe and have dominated the discussions of new ways to pay.
The new cashless India is seeking its way through mobile wallets, and with that, there is supposed to be a greater growth.
Link : https://startuptalky.com/mobile-wallets-india/
Author :- Avantika Bhardwaj
July 17, 2020 at 12:48PM
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