A study on E-Wallets

Submitted by :
T. Sanjay
Reg no. 191811208
What is an E-Wallet ?

▪ The term digital wallet has been applied to diverse forms of electronic payments

▪ Mobile wallet has many significant features like anytime transfer, mobile transfer, secure and
convenient transfer of money.

▪ A customer can pay for services by having preload money without authentication process.

▪ To use these to implement various types of cashless transactions.

Types of E-Wallet

• Open Wallet : These are the wallets which allow buying goods, withdraw cash at ATM’s and
transfer funds.

• Semi-Open wallet : Customers cannot withdraw cash but can spend only what customers
have loaded.

• Closed Wallet : When customer money is locked may be due to order cancellation, return of
goods and gift cards, these companies permit customers to use blocked money for
merchandising.

• Semi-Closed Wallet : It will not allow customers to withdraw cash or redemption but
permit the customers to buy goods and services at listed merchants and do financial
transactions.
Working of Digital Wallets
 Business model of Digital Wallets

• Charge a fee for withdrawal of Funds. Paid by customer.

• Charge a transaction fee for use at Merchants (free for P2P to maintain a large customer
base). Paid by merchant.
• Charge a fee for Cross-border transfer + make money on Fx spreads. Paid by customer.
• Create a marketplace where merchants pay commission to wallet co. for sale of product
to customers.
 Advantages of Digital Wallets

• Fast service
• Convenience
• Cash back offers and Discounts
• Instant availability

• Utility of innovation
 Disadvantages of Digital Wallets

• Network connectivity
• Security threats
• Lack of technical knowledge
• Lack of availability
• Hardware issues
• Failed transaction
 Conclusion

• People are using a few services mostly fund transfer, bill payments and recharges etc.

• E-wallet is an alternative, attractive, supportive and necessary one of digital era.

• As of now there are more than 100 mobile money developments in emerging markets and 84% of them
originated in the last three years.
THANK YOU