With the advent of different mobile apps, the process of mobile payments has become hassle free. Mobile payments, in other words mobile wallet or mobile money-transfer or mobile money is the payment service performed from any sort of mobile device and is controlled as per financial norms and regulations. The user can use mobile devices to pay for a service – eating out/ commuting/ shopping etc., if he has a working Internet connection. There is no need for carrying any cash or credit cards for making payments from a mobile wallet.
Technology plays a huge role in making things simpler. Mobile money is just one such example where the task of paying has just got easier. Although this new form of payment has gained popularity only recently, it is the global scenario for long.
All around the globe, mobile payments are used in several ways. This wallet works in different ways. Different applications of mobile transfer work in a particular method. Some apps can store credit card details or some provide a cashless wallet capacity to buy the services. For example the app named Memoe helps people to store the details of their credit cards in a very secure manner and makes payment every time from the card itself. But this might not go well along with many people. Even in India, where a large population does not own credit cards apps like Memoe is of little help. Here comes the importance of mobile apps of Mobiwik and PayTM. They create the mobile wallet with cash and at the time of paying the virtual wallet make cashless payment.
The hugely prosperous Airtel Money is also one of the apps thatcater to the need of those people who prefer paying without using credit card. Ngpay has more than 1.5million Indian clients who use this app to shop online. Obopay, UBI Money and Yes Bank Money are some other popular mobile transfer payment servers. Nokia Money ventured into this sector but was unsuccessful. Finacle banking machinery of Infosys is the mobile payment gateway that is used by Airtel Money. Every payment app charges a nominal fee for managing the account and transferring funds. SmartPay from InMobi is also a recent app that permits collection of payment by the telecommunication operator over its pre-paid card or billing.
All the legalized mobile banking services are regulated under the Reserve Bank of India’s norms. This technology helps people of several classes in a very positive way. From a small amount as Rs.50 to Rs.5000 at a time, cashless transfers take place effectively within minutes and at any time. A maximum of Rs.10, 000 can be sent per month through mobile transfer. Paying money to merchants, keeping the money safe in e-wallets, repaying of loans by self-help groups to the government has now become easier. Even mobile commerce has seen a huge boost with the popularity of mobile payments and mobile app developers are working on improving this platform.