Digital digital wallet explain in detail with example
wallet is a software application, usually for a smartphone, that serves as an electronic version of a physical wallet.
Cash went out of fashion ahes ago and instead of having to rely on a credit or debit card companies now want you to pay for just about everything using a virtual wallet. After facing regulatory troubles Uber India has now tied up with paytm to handle its cashless payments while others like Ola have chosen to launch wallet systems of their own.
The basic concept is really simple — a virtual wallet just serves as a place to hold of your money online. You make payments using the money stored in your wallet instead of using a credit card, debit card or net banking, which means your bank account doesn’t need to be accessed. Of course, adding money to the wallet still requires you to use one of those methods.
Once you stored the money in wallet you can use it to make payment to the wallet provider or to third party services depending on the type of wallet you’ve signed up for. Most services also come with a mobile app so you can easily check your balance and make purchases. Some wallets services such as Paytm are built around their own stores where you can buy goods, and some let you buy recharge for your phone or pay your DTH bill. You can also use these wallets to make payments at others websites- Foe Example BookMyshow and JustEat.in both support Paytm.
semi-closed wallet lets you take money out of it and put it back into your bank account. This means that you have full control over your money and it can be used to pay for wide range of services. Some well-known ones are Paytm Oxigen and Mobikwik. These are much more flexible then fully closed wallets but also come under far more oversight from the RBI. The concept os quickly gaining in popularity though. Paytm launched in January 2014 and is now being used for over 8 lakh orders par day
