From the age old barter system to currency and from currency to cheques, from cheques to Plastics and finally, from plastics to mobile wallet or e-wallet, the payment modes have had an interesting journey. The prime reason for innovative means of payment to come into being has been to ensure quicker and easier payment and also facilitate the ease of carrying heavy amount for transactions without actually carrying the bulk of the currency or bulky wallets.
The earlier substitute for cash which was cheque payment through banks, was a major step forward in this direction but it lacked in one major area which was time and effort to convert. With the advent of plastic cards, the conversions became instant and also led to reduction in the size of the wallets.
Without going into Credit Cards which has the additional feature of providing credits for a certain rate of interest let’s concentrate on Debit cum ATM cards. One needs to have a banking account to own a Debit/ ATM card. It works as a substitute for the earlier instrument called Cheque with an add on feature of instant Debit and Credit.
Mobile Wallet or e-Wallet Facts:
- Mobile wallets are Prepaid Payment Instruments
- They work through smartphone apps
- To use, add money using credit/debit cards or netbanking
Finally comes the age of e-wallets or generation next as we call it. It is a concept very new and novel and highly efficient. One can choose what amount of money to carry in their wallet , and add more, anytime, anywhere required. The beauty of the wallet is the ease of owning one and carrying it, not in your pocket but in your smartphone! All you need is an email ID or mobile number and you can become a proud owner of an e-Wallet like PayTM, Freecharge or Mobikwik.
There are several perks that come with Mobile Wallets or e-Wallets like:
- Transfer money to family/friends
- Receive money from family/friends
- Book airline, train and bus tickets
- Book hotels
- Pay mobile or landline phone bills
- Recharge mobile, DTH or data card
- Pay Utility bills
- Instant, single click payments
Especially, after the demonetisation drive, mobile wallets have come forward as the saviours. Even fast food vendors on the roadsides are using their PayTM accounts to accept money from their customers.
Thanks to the mobile wallets, ATM lines are no longer in my bucket list!