MOBILE PAYMENTS

Mobile payments are a mode of payments using mobile phones. Instead of using methods
like cash, cheque and credit card, a customer can use a mobile phone to transfer money or to pay
for goods and services. A customer can transfer money or pay for goods and services by sending
an SMS, using a java application over GPRS, a WAP service, over IVR or other mobile
communication technologies. In India, this service is bank led. Currently, this service is being
offered by several major banks and is expected to grow further. Mobile payment forum of India
is the umbrella organization which is responsible for developing mobile payments in India.

TRANSACTION FLOW

The transaction flow for IMPS can be simply described as ‘customer-bank-bank-

customer’. When a customer initiates a transaction by sending an SMS to the bank’s gateway,
this SMS is processed by a Mobile Payment Provider (MPP). The role of MPP is defined in the
standards document. After appropriate checks with the customer’s bank, the transaction is
forwarded to a central switch. The role of the switching agency is played by the National
Payments Corporation of India (NPCI). NPCI routes transaction to the payee’s bank based on the
MMID.

PURPOSE OF USING MOBILE-WALLET SERVICES

As a substitute for the traditional wallet, following are the uses of M-wallet:

 Recharge And Broadhand Top-Ups

Instead of going to a shop in order to pay for top-ups M- wallet enables Teleco’s to allow mobile
wallet users to quickly and effectively recharge prepaid account of a mobile phone user via
mobile phone anytime, anywhere.

 Utility Bill Payments

It helps the household or office to pay for electricity, Water, gas, telephone etc on a single click.
  Instant Money Transfer To Any Bank

It offers the customers the flexibility and convenience of managing their funds via mobile
devices by integrating their bank account with M- Wallet. It is convenient and a secured
alternative, which allow the consumer to flexibly transfer their funds from bank account to M-
Wallet and vice versa without having to visit their bank branch. Consumers need to register
with their bank and integrate their M- Wallet with the bank account to avail this service.

 Online Shopping and Merchant Payments

It allows the users to make payment for all kinds of goods and services in an easy way via
mobile wallet. The payments platform provides a real-time authorization and enables secure
mobile commerce and payment acceptance for both in-store and online

 Payment for Booking Transport Facilities

Transportation facilities provide the users. Personal mobility and freedom for users from every
walk of life.

ADVANTAGES OF MOBILE WALLETS SERVICES

1. One’s wallet can be snatched, misplaced or pick pocketed, but mobile wallet cannot be,
though there is a chance of someone stealing one’s a mobile.

2. If the bill of Rs 199/- or Rs 235/- , one will have to run around asking for change. It allows
paying on a single tap.

3. One need fill in card numbers and passwords every time, they can link their credit cards, debit
cards and bank accounts and pay immediately without any hassle to enter the details each time.

4. When one makes a payment through a debit card or credit card, one is disclosing their
confidential bank data on the merchant’s site or establishment, it can lead to unwanted security
issues but by using M-Wallet, one can restrict the exposure of confidential data.

DISADVANTAGES OF MOBILE WALLET SERVICES

1. Only with a smart phone and speedy internet connection one can use such services.
 2. More than connectivity, security is an major issue.

3. Dismal battery back-up of smart phones one can never be sure whether the phone will
be alive even for that one tap payment.

CLASSIFICATION OF MOBILE WALLETS

Mobile wallets in India classified into three types:

Telecom-operated mobile wallets:

Many telecom service providers in India have their own mobile wallet as part of its product
portfolio. One the initial services offered by mobile wallets was mobile recharges. Airtel was the
first mover in the market in the year 2011, it got the payments bank license from the RBI in
August 2015 and started Airtel money in a joint venture with Kodak Mahindra Bank. Reliance
jio was also granted a license with SBI.

Wallets by banks:

Most major banks in the India are developing wallets for their customers in order to have a direct
interaction between the seller, the buyer and the bank. ICICI Bank launched ICICI pockets in
February 2015. HDFC with Chillr and PingPay by Axis Bank and one of the late entrants, SBI
launched state bank buddy.

Independent wallets:

There is plenty of up-comers in India such as Paytm, Rupee, Oxigen wallets etc. Paytm is the
exclusive wallets service for Rooms Tonite, also payment platforms Uber and it already claims
that it has crossed the 100 million users whereas Mobilekwik is the wallet of choice for IRCTC
tickets, Big bazar and even loans etc.

ABOUT M-WALLET PROVIDERS:

1. Paytm: Paytm, launched in 2010, is currently the largest mobile wallet app in India. With
payments via Paytm being accepted almost everywhere; it’s hard not to simply switch to it
completely. From paying mobile bills to buying movie tickets, there’s almost nothing you can’t
do with Paytm.

2. Freecharge: Freecharge, one of the most famous names right when it comes to digital
payment in India, has been known to target the youth in all their promotions. With equivalent
amount of coupons given for every recharge you make, it’s a great option to save while paying
your bills online.

3. PayMate: PayMate, founded in 2006 by Ajay Adiseshann, launched PayPOS IN 2012, an app
for small business owners to receive payments conveniently via debit cards and credit cards and
also process electronic transactions.

4. Oxigen: Oxigen, a FinTech company in July 2004, is one of the major providers of digital
payment in India. Along with making online purchases and paying ills, you also send gift cards
to your dear ones.
5. Airtel Money: With the Airtel money app, users can easily recharge prepaid accounts or pay
postpaid bills. You can also shop online if your digital wallet has cash loaded in it. It’s also
extremely safe as every transaction or payment you make requires a secret 4-digit mpin.

6. Citrus Pay: Citirus Pay, one of the top e-wallets in India, it offers a Citrus wallets for
customers as well as payment solutions to businesses. With a strong base of 800 million
customers, it has definitely earned its spot as one of the best mobile wallets in India.

7. JioMoney: JioMoney, launched recently in 2016 by Jio, is a digital payment app. With
JioMoney, one can receive great discount and offers. Users can also bookmark their frequently
visited retailers so shopping can be made quicker than usual.

8. Juspay: Juspay, safe is a payment browser with over 650+ transactions in a day. They offer a
browser with which users can make payments quickly via cards with 2 clicks.

9. Citrus Pay: Citrus Pay, one of the top e-wallets in India, it offers a Citrus wallet for
customers as well as payment solutions to businesses. With a strong base of 800 million
customers, it has definitely earned its spot as one of the best mobile wallets in India.

10. ICICI Pockets: While you might find a pocket card redundant, considering you’re opting for
an e-wallet app to avoid using a card, they do have a pretty neat wallet app. It’s VISA powered
and can be used on any Indian website, or to transfer money to email ids, Watsapp contacts, and
also just tap and pay your friends easily.

11. Citi MasterPass: Citi MasterPass, a free digital wallet, helps make checking out while
online shopping a speedier process, Once you’ve stored all your payment and shipping details in
your Citi wallet, simply click on the MasterPass button and it will take care of rest.

12. Ezetap: Ezetap, a Bangalore based digital payment solution founded in 2011, offers business
owners solutions to accept card payments via electronic devices. It also send customers e-
receipts through an SMS or email.

13. HDFC PayZapp: HDFC PayZapp, making digital payment in India simplified with one
click payments, is one of the top online wallets in India. Users can easily compare flight and
hotel tickets and even buy music or pay bills with the app.
14. LIME: LIME, launched by AXIS in 2015, was the first mobile app in India to integrate
wallets, shopping, payments, and banking. Apart from the usual features like making payments,
they also let you analyze what you spend.

15. Mobikwik : Mobikwik is a Gurgaon based e-wallet payment system in India that helps its
users store their money. Founded in 2009 by Bipin Singh and Upasana Taku, this digital wallet
enables users to recharge, pay bills, and make third-party purchases with one tap.

16. MomoeXpress: MomoeXpress, a Bangalore based digital wallet in India, claims to have the
fastest checkout system. Though they’re only available in Bangalore, they have a wide range of
solutions they offer to residents on the city. From paying for your rickshaw ride to salons & spas,
there are over 3000 outlets available at your disposal.

17. MoneyonMobile: MoneyOnMobile, authorized by the Reserve Bank of India, enables users

to buy goods, products, and services from registered merchants. It’s a multilingual app that
reaches remote areas of the country to millions of users making online payments available to a
wide population.