Mobile Wallet: The New Trend Of Mobile Banking For The Future

By Author: Neha Sharma
Total Articles: 170
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Mobile wallet is a new form of technology that allows you to perform financial functions under certain regulations through the medium of your smart phone and a mobile application. This is an alternative to paying through cash, cheque or bank cards. In this article, we give you all the information that is related to this type of mobile banking.

• What Is Mobile Wallet?

Mobile wallet is a type of a virtual wallet on your smartphone where your funds are stored digitally. It can be used through the medium of the smart phone for the various financial needs. Apart from being used for sending and receiving money to pay for bills, tickets and recharges, it can be used as a mode of e - payment at any shops physically or through online mobile banking.

• How Does It Work?

This mobile wallet uses the technology of a mobile application on the phone. When a customer wants to pay through this mode they sign into the app on their smart phone and enter the PIN code. After selecting the account payment, they can select the special offers or customer reward programs they would want to avail. Once this has ...
... been completed, the payment information is transferred to the bank account through internet or phone bankingand the fund is deducted from the account and transferred to the secondary designated account.

What Are The Benefits?

There are several benefits to this kind of phone banking. These benefits are available to the customer as well as the merchant. The following are the benefits of this kind of mobile banking:
• Over 74% of the population in India has smart phones in a population of over 1.2 billion people, therefore making it a very well connected population to several services. With the technology of mobile wallet, this is a form of alternate mode of financial services provided to a large part of society.
• When an individual uses this mode of phone banking, the method of payment stays with the customer thus increasing the security of financial transactions from one account to another.
• Since this financial method does not require a physical method there is no need for countless lines for bill payments.
• Businesses can use this mode of fund transferring to secure their business and guarantee a secure service to its customers. It also allows business to improve their relation with their existing loyalty, customer managements and create future marketing strategies that will suit both parties. Once the loyalty of the customer strengthens in the business it is easier to provide customers will more offers that they can easily transmit and redeem.

Although this technology requires a very complex platform where multiple players can take part in it, this section of financial transaction has a huge potential for the future bank facilities. While a few large companies have already developed into this notion, more and more individuals with smart phones are providing to be potential users of the concept of mobile wallet technology.

Author Bio :- Neha Sharma is an avid finance student who loves to write about mobile banking and phone banking. She wishes to share all relative information regarding these concepts to the public and to those who are interested in it.