In changing financial scenarios, mobile wallets are a new addition. You can link your credit card to a mobile wallet so you don’t have to carry a physical card with you every time you make a purchase.
What is a mobile wallet?
A mobile wallet is a digital version of your physical wallet that makes it easy to spend. It is an electronic wallet where you can add money for purchases. It acts as a replacement for a physical credit card, allowing you to make payments with one tap.
How does a mobile wallet work?
A mobile wallet uses Near Field Communication (NFC) technology to digitally store your card details. The data is encrypted, which provides extra security compared to a traditional credit card. It also contains various coupons, offers and user’s personal information.
What is the process of using a mobile wallet?
Step 1: Go to your mobile wallet website or app.
Step 2: Add your credit card information to your mobile wallet website or app.
Step 3: When you add your details, the mobile wallet entity will verify your phone number and email address.
Step 4: When you make a purchase, select your mobile wallet option to make online payments.
Step 5: For offline transactions, you need to tap or wave your device at the NFC-encrypted machine.
Step 6: You will need to provide a PIN or biometric authentication to complete the transaction.
Disadvantages of using a mobile wallet
- Acceptance issues: Mobile wallets have limited acceptance as some brands or merchants may not accept them as a form of payment.
- Internet required: Every time you make a purchase through mobile wallets, you need an internet connection and a charged device. If you don’t have these, you won’t be able to make payments.
3. Security and Privacy Issues: Being technologically dependent, the mobile wallet is prone to cyber-attacks and fraud that affects your finances. If you notice an unusual transaction using your mobile wallet, report it to your bank or credit card company.
4. Costs: Certain mobile wallet companies may charge fees for a certain type of transaction, such as international transactions or money transfers. It is advisable to check such charges with your mobile wallet company as they may vary from entity to entity.
In conclusion, mobile wallets may seem like the future of credit card payments in India, but you shouldn’t be lured by the ease and speed at which you can make purchases. Always be mindful of your spending and only buy a mobile wallet if you plan to do the majority of your shopping with it.
