All you want to know about E-Wallet - Digital Wallet

What is an E-Wallet?

An e-wallet is a virtual wallet which works as a prepaid account where you can store money to pay your bills. In India e-wallets are emerging as the preferred means to pay your bills and slowly beginning to replace other traditional payment methods. You might have seen the advertisement of freecharge, MobiKwikk or Paytm. All these are e-wallets. E-wallet is fastest and convenient method to make cashless payment online and offline. In addition to convenience these e-wallets offer flat discounts and exciting cash back on your online shopping on various websites. Today you can purchase a range of products from airline tickets to grocery items using e-wallet. You can save a lot of your precious time, efforts and your hard-earned money using this medium for your shopping

How to use E-Wallet?

1. Go to the sites where e-wallet services are available or download e-wallet app.
2. Register and create a new wallet for yourself by providing required information.
3. Transfer money to your e-wallet from your bank using online transfer, credit card\debit card.
4. Make payment using e-wallet when buying something.

Types of E-Wallet

There are four types of e-wallets in India – closed, semi-closed, open and semi-open.
1. Closed wallet:-A closed wallet is one that a company issues to its consumers specifically to be used with that company only. These type of wallet is offered by several companies such as Flipkart, Jabong, Meru Cab and MakeMyTrip. This is basically an account where money gets credited in case of a refund.

2. Semi-closed wallet:-A semi-closed wallet allows you to make to make purchase and payments at select merchant locations that have a contract with the issuing company to accept payments through these wallets. Internet companies like Paytm, PayU money, MobiKwik and Oxigen provide semi-closed wallets. These wallets are approved by RBI. Cash withdrawal or redemption is not allowed in these wallets.

3. Open wallet:-An open wallet allows all functions of semi-closed wallet and also allows cash withdrawals at ATMs or banks and transfer funds. These open wallets can only be issued by banks. SBI buddy, HDFC chiller and M-Pesa by Vodafone and ICICI are examples of open wallet.

4. Semi-open wallet:-Semi-open wallet allows you to transact with merchants that that have a contract with the issuing company. Airtel Money is an example of semi-open wallet. You can not withdraw cash or get it back. You will have to spend all the money that you have loaded.

Advantages of E-Wallet

1. Easy and cashless payments as no need to swipe credit\debit card.

2. E-wallet is a prepaid account, hence no chance of declining payment.

3. You can transfer money from one wallet to other wallet.

4. Get exciting cash back offers for every amount you spend.

5. E-wallets offer flat discounts for shopping on various websites.

6. E-wallets give you the freedom of paying for exact change.

7. Simple and user-friendly payment mode.

8. Money will be refunded incase failure of transaction.

Where can you use E-Wallet?

You can use your e-wallet at multiple places, few are mentioned below

1. Utility bill payments

2. Recharging mobile phones\DTH

3. Online grocery stores

4. Online travel portals

5. E- commerce portals

You may also like to read: Public Provident Fund
You may also like to read: Money Saving Tips

E-Wallets in India

1. Paytm

2. PayU money

3. MobiKwik

4. Oxigen

5. Citrus

6. SBI Buddy

7. Citi MasperPass

8. ICICI Pockets

9. HDFC Chillr

10. Lime wallet

11. Freecharge

12.  Airtel Money

13. Vodafone M-pesa

14. mRupee
15. Novopay

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