Mobile wallets are the future of online selling. We all know the importance and impact of operating a mobile wallet. Browntape explores the benefits and future prospects of e-wallets in this article.

A quick tutorial

A mobile wallet as the name suggests is virtual currency. It is on the lines of a credit or debit card, minus the need for a bank account. A user can pay for services using the mobile wallet. There are essentially four types of wallets. Open and semi-open wallets are linked to the user’s bank account and can be issued only by banks. Closed and semi-closed wallets can be issued by non-bank organisations.

Online retail companies that have their own payment system (like Snapdeal – Freecharge) offer discounts and deals to customers who use it to shop.

Paytm’s user base far surpasses that of Maestro and Visa together. The golden number stands at 100 million and more. Not surprising, considering that more Indians have cell phones than bank accounts.

So what are the benefits?

A seller has the following benefits from mobile wallet transactions:

With so many benefits, online retailers must consider getting their own digital payment method. Things will only get brighter in the future if we observe the current trends.

The future of mobile wallets

User statistics show an upward spike. The number of Indian mobile wallet users is predicted to grow five times in the next three years.

There are a lot of offline products and services that a customer can pay for using mobile wallets like Paytm or Rupay. In the west, Samsung and Apple are operating wallets. Some wallets allow users to pay at physical stores, and pay by merely flashing the mobile (contactless payment).

User interest can also go up if mobile wallets offer an interest on accounts. This is a long shot, but going by the trends in China, it might not be that far off after all. Mobile manufacturer Xiaomi’s wallet gives interest to its users (in a pilot run). Shoppers get a 3.058 % interest on the money they save in the wallet.

Service providers are also mulling over small low-interest loans to customers. India will soon catch up with the hottest trends on mobile payment methods. Don’t be a late bloomer; adapt to the gradual turn of the tide and you will benefit.

Need more help with your ecommerce needs? Contact Browntape here. We are India’s largest ecommerce service provider and we are always at your service.

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