E-wallets in India: Promoting Cashless Economy
With the rise in digitalised payment, e-wallets were introduced to the world for instant and seamless transactions, making them more user-friendly and convenient. E-wallets in India have made it more accessible than the primary payment modes, bringing innovative financial solutions. E-wallet markets in India saw a rapid rise in users preferring e-wallet payments over cash, which also saw an increase in the use of smartphones for payments. According to a recent report, there are 217 million e-wallet users in India, which is anticipated to grow a CAGR of 23.9% between 2023 and 2027 and reach ₹472.6 trillion ($5.7 trillion) by 2027.
This article will take you through e-wallets in India, the types, benefits, etc.
What are e-wallets?
E-wallets are a software-based system allowing one to store, manage, and make instant transactions to the required accounts. It can be maintained using websites or mobile applications. E-wallets, or digital wallets, are available based on various requirements and purposes. It makes e-wallets user-friendly, convenient and instantly transacted.
Types of e-wallets
E-wallets in India can be categorised based on their functionality and usage that aligns best with the user’s needs and preferences. Here’s a table that will give a gist of different types of e-wallets with examples that are available in India:
E-Wallets Available in India
Some of the prominent e-wallets in India are as follows:
Paytm: Paytm is one of the leading in the Indian e-wallet industry. This e-wallet offers many services, such as utility bill payments, mobile recharges, shopping online, and even investments through its platform.
Google Pay: Also known as GPay, is a widely used e-wallet in India. It allows users to send money to contacts seamlessly, make payments, shop online, and pay utility bills.
PhonePe: Also known for its user-friendly interface and extensive range of services, PhonePe supports UPI transactions, bill payments and even offers insurance and investment options.
Amazon Pay: This e-wallet is integrated into the Amazon app, where the users can make payments, recharge their mobiles and pay utility bills.
Mobikwik: Another popular e-wallet that offers mobile recharge, bill payments, and prepaid card services.
Ola Money: Ola Money provides a convenient way to pay for rides and other services.
Airtel Money: This e-wallet, offered by Bharti Airtel, gives users various payment services.
These e-wallets in India can vary in terms of features, offerings, and tie-ups with other merchants.
Advantages of e-wallets
E-wallets in India have evolved in the growth of online payments and have become integral to the Indian digital market. The following section will take you through the benefits of using e-wallets:
Convenience: E-wallets have made it more convenient for users to make instant payments, transfer money or even pay utility bills on time. As e-wallets are on mobile applications, this saves much time, making it more seamless and easy for users.
Security: Users can be assured of making their payments through e-wallets. E-wallet platforms provide robust security measures such as multi-factor authentication, biometrics and PINs for authentication. These security measures help protect their personal and financial information.
Cashback and Discounts: Most e-wallets in India, like Google Pay and Paytm, offer cashback and discounts for most transactions. Earning these cashback and discounts encourages users to use digital payments, which helps in promoting the cashless economy.
Utility Bill Payments: One of the best perks of using E-wallets in India is the simple process of paying utility bills. Instead of paying offline or long waiting on the official websites, e-wallets offers payment option. So, for all recurring to essential accounts, one can set up and make the payment on time without hassle.
Transfer of Funds: This option eliminated the option to pay physical cash. Another perk is that e-wallets allow you to split bills or send an amount to your family, making transferring funds more accessible.
Offline Payments: E-wallets in India also provide an option for offline payments through QR codes. It is more convenient, especially during urgent situations or when online payment is impossible.
Digital Wallet for Investments: Some e-wallets offer users an option in investments such as stocks, policies and mutual funds. It allows users to access different options if they cannot do so through other official sources such as banks.
Environmental Impact: E-wallets help reduce the need for physical cash that involves paper production and machine printing, thus contributing to environmental sustainability.
Conclusion
Thus, we have seen how e-wallets in India have become prominent in the digital markets and have transformed how users can conveniently use e-wallet payment modes anywhere. As usage and technology have evolved over the recent years, there are numerous e-wallets available in India, giving users the freedom to choose per their usage and requirements.
Conversely, e-wallets have been helping promote a sustainable environment by reducing paper production machinery for printing and transporting, making it hassle-free. So, use e-wallets for all your transactions to immediate bill payments.
FAQs About E-Wallets in India
1. How do e-wallets contribute to financial inclusion in India?
E-wallets help in seamless and hassle-free transactions, making it easier and convenient for users to pay without physical cash or going to banks. It saves time on both ends and reduces manual work, thus contributing to financial inclusion in India.
2. Are e-wallets safe to use in India?
Most of the e-wallets in India provide robust security measures, such as multi-factor authentication and authorisation, such as verifying through PINs or biometrics. Also, another perk of e-wallets is that you can lock your account using a PIN or biometric set by you, keeping your sensitive information only accessible to you.
3. How does an e-wallet work?
At the time of the transaction, the e-wallet will authorise the transfer of funds digitally, either through linked credit/debit cards or bank accounts, after the verification.
