A mobile wallet is a type of payment service through which businesses and individuals can receive and send money via mobile devices. It is a form of e-commerce model that is designed to be used with mobile devices due to their convenience and easy access. Mobile wallet is also known as mobile money or a mobile money transfer.
A mobile wallet primarily enables an individual to pay as well as receive payment using a mobile device. Typically, a mobile wallet is delivered through several payment processing models. This includes, but not limited to:
Mobile-based billing – A user generally sends/receive payment via their mobile service provider (or in the same invoice).
SMS-based transactions – The transaction is initiated by sending an SMS short code. In this case the payment can be credited/debited from the configured bank account, credit card or mobile service.
Mobile web payments – Allows a user to send/receive payments via a mobile app.
Near-field communications (NFC) - This uses a mobile app and special hardware built in to the mobile device to interact with a payment-processing terminal.
Regardless of the model used, a mobile wallet service is generally delivered by and in collaboration with mobile service providers and banks (or other financial institutions).
Mobile Wallet As a Boon :
Mobile payment platforms have changed the course of the ecommerce industry. Although there are various mobile payment methods, however, the one that’s most popular is the mobile wallet. Mobile wallets basically make use of the NFC technology that enables the customer to make a payment to the vendor using a mobile application. Top beneficiaries of this technology would mobile operators, technology companies, banks, consumers willing to shop online or those who wish to get an online recharge and merchants. They will benefit as this technology gives them the ease and convenience of paying for the products and services that they want.
Do's Section for Mobile Wallets :
1) Use a strong password : A mix of alphabets, numbers, character and alphanumeric is best.
2) Download App From Authentic sources : Preferably, from the company site, not third party sources.
3) Check your mobile wallet statement carefully : Hackers don't siphon off your all money in one go, they take small amounts.
Mobile Wallet As a Curse :
Lack of caution is the loophole, says experts. All net banking nad card transactions used risk-based step-up authentication, unlioke most mobile wallets. It is upto the mobile wallet providers to keep their platform secure
Dont's section for Mobile Wallets :
1) Don't use public Wi-Fi : Hackers can snoop in and steal login credentials.
2) Don't fall for cashback offers : Go to RBI website to see if the mobile wallet company has a licence.
3) Don't add too much money : Even in the case of a hack, the amount you loose will not be a crippling blow.
4) Don't save card details on mobile wallet : Everytime you transact, uncheck the box that says "use this card for future use".