CHAPTER - 1

INTRODUCTION

E-WALLETS

A mobile wallet or e wallet app or e payment is an app that

consists of your debit and credit card information which helps
the users to pay for goods and services digitally using their
mobile devices.

Popular online payment apps or payment apps or e wallet

list in India include:
Paytm
PhonePe
Google Pay
Amazon Pay
MobiKwik AND PhonePe
 Payment Apps or mobile wallet refers to the payment services
operated under financial regulation and is performed using a
mobile device. The concept of paying using cash, cheque, debit
or credit card is off lately becoming outdated and especially
during the pandemic, it offers a safer means of transaction.

The new payment mechanism which involves payment for a

transaction using the mobile wallet or mobile money transfer is
gaining momentum.
The concept of mobile payment is gradually being accepted
and adopted across the globe in different ways. The exclusive
first patent defined as ‘Mobile Payment System’ was filed way
back in the year 2000.

Working of e-payment apps.

Money can be deposited in the payment app before conducting

any transaction or in other cases, an individual’s bank account
can be linked with the digital wallet to conduct the financial
transaction. Payment apps will have both the software and
information component in it. Secure and fair electronic payment
systems form an important issue. The software helps in
providing security and encryption for personal information and
for conducting the actual transaction.
Types of Mobile Payments
There are five different types of models for mobile payments:
1. Card-based payments
2. Mobile Wallets
3. Contactless Payments NFC (Near Field
Communication)
4. Carrier Billing (Premium SMS or direct carrier billing)
5. Direct transfers between the payer and payee bank
accounts on real-time based operations
 Features of E-Wallets

Instant Payments- The money transfer between the payer

wallet and the payee wallet will happen within a matter of a
few seconds, instead of hours or business days in an
e-wallet account. The feature provides huge benefits as
payments can be done anytime and from anywhere making
fund transactions immediately and this will increase the
control of personal and business funds.

Managing Virtual and Physical Card Operations -

The emerging technology has helped the e wallet app
to store the user’s credit or debit card data, which can
be used to make money transactions at any time from
anywhere across the globe. The evolution of e-wallet
simplifies the user’s finances and it conveniently helps
to aggregate all their cards in one central space. A
mobile wallet or payment app is safer to carry all your
cards with you as it avoids the user having to
physically carry the credit card.

Bill Payments Payments App- is one of the critical

mobile wallet features as most of the youngsters prefer
to pay bills online be it for shopping, groceries,
restaurants, movie tickets booking, flight tickets
booking, rent, tuition, utilities, loans, and so on.
Paytm is one of the Indian e-commerce payment systems and a
financial technology company whose headquarters is located in
Noida, Uttar Pradesh. Paytm was founded by Vijay Shekhar
Sharma. The company was initiated in August 2010, with an
initial investment of $2 million. Initially, it started as a prepaid
mobile and DTH recharge platform and later it added postpaid
mobile recharge, data card, landline bill payments during the
year 2013.

By using Paytm Wallet App, users can easily pay for services at
stores, send and receive money using the app, opt for online
purchases and the list goes on. All that the customers have to
do is to use the BHIM UPI on the app by linking their respective
bank account with UPI address.
Paytm Wallet App can be used to:
Make payments for utility bills
 Pay for transportation services
Make Online purchases
Send and receive money.

Google Pay is an online payments system and a digital wallet

developed by Google to power in-app and make purchases
using a mobile device. The app helps the users to make
payments with tablets or watches or with Android-based
phones. Previously launched as Android Pay, the service was
released at Google in 2015. Android Pay was a successor to and
was built on the base established by Google Wallet which was
released in the year 2011. It used the technology from Softcard
whose intellectual property was acquired by Google in February
2015.
It has replaced the use of debit or credit card and PIN or
magnetic stripe transactions at the Point of Sale (POS)
terminals, as it allows its users to upload their Google Pay wallet.
The app is similar to the contactless payments which are
already existing in many countries worldwide. The app works on
 two-factor authentication. The service allows Android-based
devices to wirelessly communicate with the Point of Sale (POS)
systems using an NFC antenna, Android’s security and
host-based card emulation.

The PhonePe (PhonePe Private Limited) is currently, one of the

leading Indian e-commerce payment system and digital wallet
companies which was founded in December 2015. The company’s
headquarters is located in the Silicon Valley of India –
Bangalore. PhonePe was initially founded by Rahul Chari and
Sameer Nigam.
The digital wallet company went live from August 2016 and it is
touted as the first payment app which is built on the Unified
Payments Interface (UPI). Currently, the app provides its services
 in regional languages as well and is available in over 11 Indian
regional languages.
Using this digital payment app, the users can receive money,
send money, pay for shopping bills, recharge mobile packs,
recharge DTH services, make utility, electricity, water bill
payments, pay for data cards, purchase gold online and offline
mode, instantly.
Apart from this, the users can also use the app and book for
cab rides, order food online, avail hotel services, pay for Redbus
tickets, make payments for flight tickets and so on. Around 5
million online and offline transactions have been accepted so
far using the Phonepe app which has covered groceries, food,
movie tickets, travel and so on.

MobiKwik is one of the India based e-commerce payment

systems which was founded in 2009, by Bipin Preet Singh and his
wife – Upasana Taku. The company was started with an initial
seed capital of $250 thousand. It provides a mobile
phone-based payment system and acts as a digital wallet. Users
can add money to an online wallet which can be used for
making online payments. It launched an e-wallet system in the
year 2012 which helped its customers to deposit money online
which could be used for bill payments and other features.
MobiKwik app is available on both iOS and Android-based
devices.

The wallet can be used across a range of payment services

which includes payment of grocery bills, utility bills, mobile
recharges, movie tickets booking, metro recharges, cab
bookings and the list goes on. The wallet helps to bridge the
divide between consumers and companies through swift
recharges and bill payments at no extra cost for online
transactions. The app offers instant money transfer facility for
friends and family members on the go swiftly and instantly. The
company rolled out a credit product, known as ‘Boost’ which
provides loan disbursal in a matter of 90 seconds, with this,
MobiKwik has become the first in the payment apps industry to
give loans via a mobile wallet. The company plans to add new
products in its lending portfolio in the coming days.
 Amazon Pay is one of the leading online payment processing
systems which is managed by Amazon. It was started in the year
2007, the Amazon Pay uses the consumer base of Amazon.com
and focuses on providing the users with an option to pay with
their Amazon accounts on external merchant websites.
Currently, customers can opt to make their payments method
by either choosing debit or credit card or through net banking
or via Amazon Pay Balance.Amazon Pay provides an option for
purchases to buy goods and services from web portals and
mobile apps using the addresses and payment methods that
are stored in the Amazon account which includes debit and
credit cards.
The Amazon Pay Express is a kind of payments processing
service for simple e-commerce use on web portals. It mainly
uses the Java button code generator to create a button that
can be copied and pasted onto a website or added via
WordPress Plug-in.
 BENEFITS OF E-WALLET AND PAYMENT APPS:

The following are the list of benefits or e wallet advantages:

Customer Convenience The best advantage of using a

payment app is customer convenience as they will be able to
make payments using their mobile phones either using the
contactless payments or by scanning QR code instantly. The
payment apps India can be made by using either Samsung Pay
or Android Pay or Apple Pay. One can easily leave the cash and
cards at home and use their phones to make payments instead.
Payments made using a mobile wallet are often easier and
faster than swiping or inserting the cards.

Improves Cash Flow The introduction of e-wallets has

improved the cash flow in the markets. For starters, most of the
customers prefer to pay their bills using debit/credit cards over
the traditional method of cash payments. Most of the mobile
payment processors will transfer funds to a business account in
under three days.

Integrates Loyalty Programmes The use of mobile

payments makes it possible to integrate loyalty and reward
programs as customer information will be stored in the app. For
example: being able to send customers a coupon when they are
close to your store. This will help the customers to automatically
receive the reward points or coupons for every transaction
which they make.