Group 1

End User
Domain
Payment Intermediary
Domain
Stored Value Stored Value Stored Value
Account Account Account
Provider
Third Party Payment
Biller/Creditor Service
Provider
P P
Banking
A Money A
Interacti Domain
Y Transfer Y
E on/Conn E
Value
R ection E
Transfer

Bank Payment Bank

System

Digital Wallet Digital Wallet

P.O.S
Provider

Securi Card
ty Mgmt
EVENT SEQUENCE IN DIGITAL WALLET
ENABLED METAMARKET
Depositing Posting
Client Identities
Fund Sales

Accepting
OR Making
Delivery Escrow Lock
Rejecting Order
Order

Escrow
Receipt
Release
 3 Merchant checks
with bank to ensure
that digital cash is
valid
Bank Merchan
t
1. Consumer gives 4. Merchant accepts
2, Consumer contacts the digital cash and
bank money, gets
merchant, offers digital delivers product
digital cash
money for goods

Citizen/ Other
consume citizen
r
5. In some systems,
citizen can transfer
digital cash to one
Digital Wallet Providers

We are aware of HCE in-store

most of the Excep technology??
things t few ACH
Payments??
Loop pay??

Source : Mckinsey & Co.

 Digital Wallet and Street Vendors

According to 22 yr old

Pappu Shah who owns a
Why
Finally, dodigital
has consumers use
walletpaan
been digital
shop wallets
successful
it was a inatthis
local
link of the
Why
meta do local vendorsnightmare
vendors?
market? associate themselves
keeping tabs on with
digital wallets? who to collect dues from,
Easy the of
andpayment
Certainly, numbers say it all
who to pay back, and in
Daily transactions throughhave e-wallet
No hassle the endfor change
I wouldnt
services enough
has shot up
money from 17end
at the lakhof to
63Currently,
lakh.
20km away inthe dayCash
Munirka, send crunch
to Bunty home to my
Aggarwal
Transactions through RuPay
family, Cards
(35), Ease of maintaining
a tea and refreshments stall owner
were up 316%
saysWhenever theseat young
16 lakh daily.ask
people
account
The wallet
change,
for I justcompanies
tell them toexpect
pay via growth
the
to remain
application. strong.
I get up to 20-25 customers
daily, who pay digitally. This mode of
payment is also easy for me as now I can
pay my electricity bills via the app
 Digital Wallet and Travel Industry

Benefits to consumers in travel industry

Pros for travel industry in associating with
from digital wallets
digital wallets
improved convenience for the users.
present the potential for more expansive
Satisfaction through streamlined
and less expensive approaches to
processes.
longstanding transaction models.
Relief from hustle and bustle of brick and
disrupt traditional transaction models.
mortar payment gateways for the travel
Garners focus towards customer loyalty
industry.
in the larger frame.
Ease of check-in processes.

Finally, has digital wallet been successful in

this link of the meta market?
Global mobile travel booking industry
rose to approximately 22%.
siphoning attention away from traditional
payment platforms including credit and
debit cards.
 Digital Wallet and ISP

Movement
ISPs have Transactions towards
been an over secure sound-wave
integral part connections based
transactions
 Digital Wallet in Retail and Restaurants

How does a customer benefit using Digital wallet?

Starbucks mobile wallet
Provide more control when
Free shopping:
charge wallet option
service
Better understandingallows was launched
of spending and in
about 87 million
finances(e.g. alerts)2011 and has about 10
users to get a better
million customers.
Manage purchase receipts from thingsUsers
youinhave
shopping experience the
bought earn stars for each
form of better security and
purchase
Integrate with your primary through mobile
bank
faster checkouts.
wallet which
Integrate offers into a seamless canaccount
mobile be used to
redeem free drinks and
Receive and store deals/offers/coupons
food.
Enables seamless redemption of deals.
Greater options on how to pay and get paid
Control over funding sources
Allows customer to send money to friends &
family.
 Digital Wallet in Retail and Restaurants
Benefits
Improves Cost and Operational
efficiency through
Industry Perspective-
lesser fraud expenses
Digital Wallet
lower payment processing fees
faster checkout times.
Serves as a medium to collect
Customer data which can be
leveraged to incorporateloyalty
and reward programsto offer
products based on consumer
preferences gleaned from previous
mobile wallet payment data.
When integrated with the
merchant's loyalty program,
mobile payments enable instant
cross- and up-sell opportunities
based on purchase history
Drawbacks
One of the major drawback is
Benefits and Drawbacks
Security of of
concerns
customers.
Digital wallet users are
concentrated in the age group
of 18-34, while the older age
groups still prefer
conventional payment
methods.
The initial monetary
investment for building a
functional digital wallet
application is quite large.
System Outages:Information
for digital wallets are stored
on the cloud of business
servers; therefore, the risk of
a system malfunction or shut
Digital Wallet and Utility Payments