The financial market is competitive like any other. To stay above the competition, these financial institutes are now investing in new age product innovations and customer centric models. Some of the new age products include the mobile wallet, which is slowly gaining popularity over the last few years.
In reality, the mobile wallet is a niche product. Over the last few years, it has evolved to the ideal financial product while facing, technical specifications, competing brands, consumer education and security concerns. However, at the basis of this mobile wallet, lies the mobile phone.
Millions of individuals are host to not one, but at times, multiple mobile phones, especially in India. It has come to such a stage where these millions, are dependent on their mobile phones. Although previously, mobile phones were used only for communication purposes, today, multiple activities are conducted on this platform, including mobile banking.
But with the rising trend of mobile wallet, what is the difference between this product and mobile banking in India? Given below is an insight into these two entities.
Mobile banking is a financial service that allows customers of a financial institute to conduct some financial transactions through a mobile platform. Through mobile banking in India, a customer can transfer money, make a deposit or even check their balance no matter where they are located or which bank they have invested in. Mobile wallets, on the other hand, is a product, as a part of the services of mobile banking. This helps a customer store their financial information, card details, vouchers or even transit tickets on an organised or secured platform on their mobile phone. In other words, this mobile wallet functions like a virtual banking card, which can also be used to make a point of sale purchases. This allows a customer to view cards and choose a payment or transaction method that is preferable to them. As a user of mobile wallet, it allows you to get a real-time view of all your transactions. This improves interactive money management, thus allowing transactions to be more secure. In addition to this, you will have all payment sources in one place, making it simple for any purchases. These wallets also help banks address customer’s problems such as carrying several cards or even tracking due dates and offers. Additionally, banks also get an idea of the customer’s buying behaviour, which allows them to target and offer a relevant financial experience.
Just like the popularity of mobile banking in India, so has the popularity of mobile wallets increased. Plenty of individuals in India have already invested in apps that are basically mobile wallets. However, not many banks have included this product as a part of their financial services. As in the coming decade, plans have been made to incorporate mobile wallets as a part of major financial institute’s services in the near future