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Is Mobile Wallet the Future of Money?

In order to promote paperless economy, government of India has initiated Digital India which has led to the spread of digital payments on a large scale. In fact, post post-demonetisation, digital wallet became a necessity. Be it a mobile payment options, or something as basic as acceptability by merchants and consumers, mobile wallets in India got on an exponential rise. Though mobile wallets are still in a budding stage, there is wide acceptability, and the speed at which mobile wallets are rising is incredible.

By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology. Countless people across the nation are becoming increasingly comfortable with making payments through their mobile phones. With a certain degree of comfort setting in, a phone turning into a means to transact is natural and will become second nature in a few years.

India has witnessed a gradual shift from cash to digital and the major factor that has been instrumental in this digital shift is the unparalleled growth of mobile and internet services.

As the RBI has been prompt in taking steps to support the use of e-money, most banks already have their dedicated mobile wallets.  Recently they have introduced support for money transfer between online wallets too.

Mobile wallets have evolved with time as now they are packed with user-friendly features, simple interfaces and attractive discount offers. They are more secure than carrying actual cash—an attractive appeal for the tech-savvy generation. To create this huge cultural shift, people were induced by various incentives.

Future of mobile wallets

The future of mobile wallets and other mobile payments solutions looks bright. All thanks to the number of internet users that is expected to touch the 650-million mark by 2020. The digitally-savvy customers are preferring the convenience of digital money.

Considering the current scenario, it is very much possible that digital wallets, instead of being limited to a simple, stored-value account, mobile wallet can evolve to be a complete financial management tool. Still there is a lot to be explored in this area because the digital payments scenario is still in its teething stage. The demand for p2p payments and e-commerce, among other factors, will continue to grow and encourage the increased use of mobile wallets.

In order to harness the potential of mobile payments, few key challenges have to be handled, tactfully. There is a requirement of creating a sustainable and reliable ecosystem that offers diversity in terms of payments, savings, insurance, credit and more. This technological paradigm shift needs to be pushed through promoting education regarding the advantages and convenience of digital wallet among people who are still not convinced. There is a need of a dedicated boost to support the financial inclusion factor of mobile wallet especially in remote places. A multi-pronged effort across the nation, needs to be implemented to make people understand the relevance of mobile wallets in daily life. After all consumer adoption and preferences reign supreme.