How you make payments for anything right from mobile recharges to cab services is being redefined. Gone are the days of paying cash! Paying through a debit or credit card was much easier but today, companies are going all out to help cashless payments. Most services right from food to hotel rooms are tying up with virtual wallet startups like Paytm to make cashless payment a reality. For those who find all this confusing, read on.
So basically, virtual wallets help you store money online. To make it more secure, cash in digital wallets is limited to Rs.10,000 and companies are slowly trying to increase it beyond that. So no more net banking, credit or debit card payment and your bank account remains secure.
Leading mobile wallet service providers in India
- Paytm
- Oxigen
- Mobikwik
- PayUMoney
- Vodafone M-Pesa
- Freecharge
- Citrus Pay
How to acquire a mobile wallet
- Download the app/ sign up for their service
- Put in some amount into the wallet through net banking, credit card etc. Sites like Mobikwik even offer to collect cash at your doorstep.
- You start using your wallet wherever it is accepted like with cabs, restaurants etc. The amount automatically gets deducted from your wallet. Since the RBI has a set of guidelines, there’s no way the service provider has any control over the money you deposit.
As mobile wallets are catching up in popularity, more and more services are tying up with them so using them is extremely easy and safe. Since the mobile wallet concept is pretty new in India, rest assured, almost all sites offer huge discounts, cashbacks and deals. Paytm has regular discounts credited to your wallet. Check out the latest Paytm discounts right here.
Uses of Mobile Wallets
- Online shopping
- Ordering food
- Recharge mobile and DTH
- Pay bills like electricity
- Book movie and train tickets
- Pay for taxi services
- Hotel and bus bookings
Some advantages of shopping through wallets
- Easy and quick payment
- Card details not revealed
- No chasing after change after paying
- Bank account is secure
- There is a check on spending
- Plenty of discounts
Main types of virtual wallets
Closed- A closed wallet is issued by a company to a consumer for buying goods and services exclusively from that company. There is no cash withdrawal and money will be refunded to your wallet for return of goods and can be used for further purchases or bookings. Eg. Makemytrip, flipkart
Semi closed- A semi-closed wallet can be used to buy goods and services, including financial services, at certain specified merchant locations which have a contract with the issuer. Semi-closed wallets do not permit cash withdrawal or redemption by the holder. MobiKwik and Paytm offer semi-closed wallets.
Open Wallets- Open wallets can be used for purchase of goods and services, including financial services and also cash withdrawal at ATMs . These kinds of wallets can only be issued by banks.
So if you are tech savvy and live by your mobile, start using these services and save money! Services like Mobikwik and Freecharge offer cashbacks and discounts on anything from Dominos pizzas to shopping with Big Bazaar. So make sure you avail them to your advantage. To look for best offers- look up sites like shoppirate.