How the E-Wallets works? And what are the advantages of E-Wallets
An Electronic Wallet is any device or software which allows a user to store, manipulate. ewallet how does it work | Download free pdf
What is E -Wallet ?
• An Electronic Wallet is any device or
software which allows a user to store,
manipulate, and pay with various types of
payment instruments such as electronic cash
and credit cards. They make it unnecessary
to retype credit card numbers and addresses
each time a purchase is made.
• Most E-Wallets are software programs that
run on a user’s personal computer.
• Soon they will be integrated into a variety of
devices, such as cell phones and PDAs.Definition of E- Wallet
Hold credit card numbers, electronic cash, owner
identification, and contact information.
Give consumers the benefit of entering their
information just once.
Make shopping more efficient.
A Digital Wallet (also known as an e-wallet) allows
users to make electronic commerce transactions quickly
Why Need Comes ?
▸ Thick, bulky, unmanageable physical wallet.
▸ Finding particular items is time consuming.
▸ Evocating a lost wallet is extremely hard.
▸ Managing multiple monetary and identification implements is not
▸ Monetary implements include cash, debit and credit cards, and
stored value cards while identification includes national or state
identification cards and driver’s licenses.
▸ Reducing the chance of theft by having only one item to manage.5
Types of Electronic Wallet
Server side Client side
wallet walletTypes of Electronic Wallet
Server Side Electronic Wallet
A server side electronic wallet stores a customer information on the remote
server belonging to a particular merchant or wallet publisher
Client Side Electronic Wallet
A client side electronic wallet stores customer information on his/her own
Many of the early electronic wallet were client side wallet that require users to
download the wallet software.7
How it works ?
▹ Sender Mobile sends request to Transfer Money.
▹ System checks available balance in Sender’s A/C from
that particular Bank.
▹ It transfers money from senders A/C to receivers A/C.
▹ After a successful money transfer it sends a confirmation
notification (SMS/Email) to receiver.
▹ Money can be send and/or receive from PayPoints.8
Example For Transaction9
HOW TO SUPPORT CASH TRANSFER ?
▸ Place cash in the digital wallet either by :
a) Topping-up the cash on device at specific top-up machines
which are integrated with existing automated teller
b) Online by logging into bank’s online portal and
transferring cash into phone.
▸ Transferring that cash to a retailer or another digital wallet by
using NFC (Near Field Communication) .10
Secure Communication Medium
• New NFC (Near Field Communication) chipsare already
appearing in smart phones which provide very close range, low
power, easy to setup up point-to-point communication.
• NFC acts as the communication medium for exchanging monetary
and identiﬁcation information, such as credit card numbers and
receipts, with other devices.Technology
Fast Secure Authentication and Secure Tamper Proof
• Secure programmable chips in cell phones will allow the cell phone to
securely store both “digital cash” and the phone owner’s monetary and
• This assumes that the cell phone owner secures his digital wallet with a good
password. This chip will ensure that thieves are unable to access the digital
wallet embedded in the stolen phone. Biometric scanners could also be
integrated into cell phones and used for quick and easy authentication.13
How it is Being Used Right Now in India After
Demonetization of Money?
There are many different companies offering E-Wallets.
Although each one is a little different, they all perform the
same basic tasks. Some of them are:-
- SBI Buddy
- Mobikwik Wallet
- Free charge14
Paytm is a Payment Gateway to facilitate Indian e-
Owned by One97 communications.
The company is headquartered in Noida.
Paytm entered India's e-commerce market in 2014.
Focuses on mobile and DTH recharge.
It gradually provided recharging and bill payment of
various portals including electricity bills, gas bills, as
well as telephone bills.15
Mobikwik is India’s most convenient mobile wallet & online
payment system for shopping, mobile recharge, DTH recharge,
money transfer & bill payment.
Bipin Preet Singh, Upasana Taku is founder of Mobikwik.
launched in 2009.
25 million users across country already bestow their trust on us.
Company’s Head Quarter in Gurgaon.
Parent one Mobikwik system private limited.
Use Mobikwik for cashless, hassel-free experience while
Shopping, Dining, Travelling & a lot more16
‘STATE BANK BUDDY’ shall means mobile wallet service of
bank and include the service over the applications.
SBI Buddy launched by sh. Arun Jaitely honorable Union
Minister Of Finance.
In the presence of sh. Jaynta sinha (minister of state for finance).
State Bank Buddy – Mobile Wallet.
Available in 13 language.
launched on 18 August, 2015.
Provide freedom to send money to Anyone, pay bills, recharge
mobile DTH, flight & bus tickets.17
Free Charge is a e- commerce web site.
Launched on August 2010.
Founder kunal shah
Head Quarter in Mumbai.
Present owner Snapdeal
It provides online facility to recharge any
prepaid mobile phone in India.
The amount paid by the user for recharge
is returned in form of shopping coupons of
some of the top retailers in India, thereby
making the recharge virtually free.18
After Demonetization Effect on E -Wallet
After demonetization of money on 8 nov,2016 in India there is a big change in
Huge number of people use e wallet marketing in that day.
Due to that reason ERP of e wallet marketing is increase.
A lot of shopkeepers, Shoemakers, Tea stall, Xerox shops used paytm and
others E-Wallet like Free Charge, Mobikwik, pocket by ICICI and SBI bank.19
After Demonetization Effect on E -Wallet20
After demonetization effect on E-Wallet
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