‘Wallet’, typically known as a purse to keep cash, cards, etc.’ ‘E-wallet’, has replaced a wallet from its physical form to an electronic form. An e-wallet needs to be linked to an individual’s bank account to make payments. Today, the spread of e-wallets in India is such that one can make payments for various purposes- from DTH bills to phone bills, from street side vendors to cab drivers or companies (like Ola, Uber). E-wallets have turned the world to the next level of development and technology. The Reach of e- wallets is huge, its fast, accessible, safe, easy, and is linked to almost every platform to make payments, and make our lives way more easier. Whereas debit and credit cards are directly linked to our bank accounts and are used to make payments either by swiping or in ATMs to collect cash. It uses a secure method by asking for the PIN, CVV or the OTP at the time of making any transaction.
The biggest push for mobile wallets came when the RBI insisted there has to be a two-step authentication process for all card transactions done for a cab service. This meant cashless payment that was pushed as one of the greatest ease of availing these cab services were suddenly rendered useless. Operators like Uber, Ola and others, then switched to mobile wallets to enable user carry out cashless payment. The biggest segment of mobile wallet users is the ones who avail such cabs and hence the segment has seen rapid growth.
Although globally around for more than five decades, credit cards in India are still at a nascent stage. There are about 21.2 million credit cards in circulation with HDFC Bank having the maximum number of card holders as of April, 2015.
Unlike a physical wallet where credit cards and cash are bundled in a single location, a mobile wallet contains extra layers of security that protects your electronic transactions. Digitally storing your financial details helps in case you misplace your wallet. Consumers face the risk that their sensitive information will fall into the wrong hands making you more susceptible to credit card fraud. While more than a third (37%) of those who experienced fraud with the organization would stop shopping there, 26% would not and 37% are not sure. Part of the challenge is deploying totally secure technology for mobile and online shopping. The other part is gaining the confidence of consumers that their information will remain secure.
So, what do you think is the safest and easiest?
