Mobile Wallet

Mobile Wallet or Digital Wallet adoption is on increase worldwide including India. Seeing the growing trend, one can easily assess the enormous potential of the sector and that’s the reason, tech biggies like Apple, Google and Facebook are eyeing the sector very keenly and putting big money on it. Though they have not announced any plan for India but once they start rolling out, India would be on their priorities being the second largest mobile and third largest internet user market in the world.

Telecom giants Airtel and Vodafone and many other non-banking entities also jumped into this bandwagon as they applied for the mobile bank license.

Recently RBI allowed telecom operators, supermarkets chains, electronic wallets and prepaid instruments players to open Payment Banks and accept deposit, basic savings and provide remittance service for millions who presently are excluded from the financial system. These Payment Banks are allowed to issue ATM-cum-debit cards to access funds. There can be a maximum balance of Rs 100,000 per individual customer. The Payment Banks platform can also be leveraged to distribute simple financial products like mutual funds and insurances, while such entities are prohibited from providing loans.