Technology is making everything smoother and hassle-free then why does a wallet be far away. Yes your traditional wallet is going mobile (and for a considerable time). However, it is too early to call it a dooms day for traditional wallets as few of us are still habituated of using credit or debit cards in full fledge. But whosoever has used it, loved it. Let’s have a basic look at mobile wallet.
Mobile Wallet- what’s it?
Umm, you know the difference between a postcard and an email right? Same goes for a mobile wallet and a traditional wallet. Downloadable through a smartphone app, it’s awesome and hence got its name.
Loved Uber then you will love this too. Just make it sure you got money in your wallet and leave every other worry with it. No need to go to the ATM either. You can add money using credit/debit card or online banking. Your bank is a click away from you.
Types of Wallets
4 types of wallets are there. Open, semi-closed, semi-open and closed.
Open Wallet: Using digital money pay for goods/services. You can withdraw money from banks and ATMs and money transfer can be done easily. Wow! then you can transfer money to bank accounts having mobile number.
Semi-open Wallet: You can pay money to merchants having contracts with mobile wallet service provider. There is no way to withdraw money.
Semi-closed Wallet: Same as above semi-open wallet, except that you can pay at listed places.
Closed Wallet: Most commonly used by ecommerce companies. Limited payments are made for goods/services offered by that online store.
How do they function?
It’s so easy if you know it. Choose your Wallet and fill it up via credit/debit cards or online banking system. You are ready to have financial transactions with listed merchants of the service provider.
Do you know that you can also pay for digital contents using mobile wallet? Mostly mobile wallets offer great discounts, freebies, cash-backs, coupons to customers. Tell this indirect marketing or anything but retail companies offer them when you pay through mobile walllets.
Mobile wallet service providers are coming with innovative ideas that of transferring funds among users.
1: Simplicity of process is what we vie for and mobile wallets give us exactly that. Only a few tabs on your smartphone and you are done.
2: As a major means of promotion, service providers of mobile wallets offer various kinds of rebates and freebies. Get your gifts as much as possible now.
3: Retail merchants see these as enormous opportunities for real-time marketing, customized promos, discount or cashback offer to customers. This is a great way to enroll more customers through loyalty programs.
4: Greater online sells and the Ecommerce business is completely exploiting this feature.
1: First and foremost disadvantage is inaccessibility. Many people living in hinterlands don’t even have knowledge of mobile wallets.
2: Just like every other online transaction threat of cyber crime lurks in behind. If in any way its security is compromised, valuable information may be violently exploited.
When Ecommerce shops were first launched nobody has expected its massive rise in such a short span. Now it’s making brick and mortar retails run for their money. Just like them mobile wallets to have enormous hidden potentials and sooner credit/debit card service providers may be running after their money.
It’ll good to see their future rise as we see Ecommerce Websites now. However how it will progress is a matter of time.