E-wallet is just like a wallet in your pocket but the difference is that it is stored in your smart phone or tablet as an app. You can install e-wallet apps into your smart phone and use it to make cashless payment against any kind of service or products purchased. You can also say e-wallet is an online prepaid account which linked with your bank account, debit card, or credit card. You can store money in your e-wallet that you may use to buy products or services without swiping your debit/credit cards. E-wallets are the best option for cashless payment with highly secured manner. Digital wallet or e-wallet keeps safe your cash, debit card, and credit cards.
Digital wallets or e-wallets are stored in your smart phones or tablets. There is different kind of communications like NFC, WEBLINKS, QR-Code, SMS, Social Media, etc. channels present in e-wallet but the concept is same. Digital Wallet or E-Wallet are categorized in three modes:
1. Closed Wallet: Closed wallets are issues by companies to consumers with restrictions that consumer may only use that wallet to purchase goods or services only from that company. Like Flipkart, OYO Rooms, Ola, Jabong, MakeMyTrip are some companies issue closed wallet to the consumers. These wallets works as an account in which money gets credited in case of any refund, cancellation or return of a product or service.
2. Semi-Closed Wallet: As Per RBI (Reserve Bank Of India) guidelines, A semi-closed wallet could be used to buy goods and services, including financial services, at clearly identified merchant locations or establishments, which have a specific contract with the issuer to accept the payment instrument. You can’t withdraw or redeemed cash using semi-closed wallet. Some companies like, Oxigen Services India Pvt. Ltd., Citrus Payment Solution Pvt. Ltd., PayTm, PayU, EKO are offering semi-closed wallet. Now Ola is also upgrading their closed wallet into semi-closed wallet.
You can download and install Cytrus cash app which is semi-closed wallet. This wallet could be used not only multiplexes like PVR, INOX but you may also recharge DTH services like Sun Direct using this wallet. Now Semi-closed wallet like PayTm powering IRCTC payment gateway for cashless payment.
3. Open Wallet: Third kind of wallets are Open wallets which can be used to purchase goods and services including financial services such as fund transfer at merchant location or POS ( Point Of Sale) terminal that accepts cards, you can also use these wallets for cash withdrawal through ATM (Automated Teller Machine). Some Open wallets are MasterCard, VISA, RuPay, M-Pesa By Vodafone India in partnership with ICICI Bank.
Everything in this world has some pros and some cons, E-Wallets also have some benefits and some risks. Here I am quoting some benefits and risk of e-wallets to make you aware.
· Ease of use without entering your debit or credit card details every time for online purchase.
· For some site there is no minimum amount restriction that’s why you can deposit even 10 rupees.
· Because e-wallets are prepaid account so there is no chance of payment declined.
· Discloser or revealed password can lead to money theft.
· There is no refund facility and you can only redeem against a purchase.