Sunday, 22 May 2016

Why mobile wallet is not next big revolution in payment!!

Mobile wallet started around two decades back with four advantages over the normal cards transaction.
  1. It will not share any cards information with merchants hence mobile wallets are safe and eludes stealing of data from thieves.
  2. The success rate of payment used to be very low due to typo error in feeding of cards information and lack of technological advancement.
  3. Due to lack of point of sale (POS) terminal, making cashless transaction was difficult.
  4. Mobile wallet is simple to use!
Present Scenario
  1. With technological advancement and stickiness of regulatory bodies (mainly PCI-DSS), stealing data is next to impossible.
  2. With the given option of saving card details and handy uses of laptop and mobile phone, chances of typo errors are very minute.
  3. POS is ubiquitous in information age. Most of the shops have provision to make card payment. It is more accessible than wallet.
  4.   How can a mobile wallet be simple? It is neither source nor destination.

Mobile wallet solution (3 step process)
Card Payment solution (2 step process)
Disadvantages of Mobile wallet
  1. There is limit on amount of transaction a person makes through mobile wallet. Currently, you cannot make any transaction more than ten thousand.
  2. Mobile wallets are not saving bank account. You do not get any interest for keeping money in mobile wallet. Hence, it is not wise to keep large sum of money in wallet.
  3. Mobile wallet is not universal payment. Every merchant does not accept mobile wallet but most do accept card payment.
What used to be great about mobile wallet is now, obsolete concept. No matter how much Paytm try to push, it is not sustainable in the long run if does not make any revolutionary changes in the present system.

With advent of Unified Payment Interface (UPI), it makes mobile wallet even more irrelevant.
Mobile wallet has been just a shortcut to avoid card payment which was great 10 years back. Now, we do not need such shortcut anymore with the advancement in technology.
About me: 

Being an entrepreneur by choice, I am passionate about what I do. I love brainstorming, ideation, development and execution. I took plunge into entrepreneurial journey with Trreek – a platform which enable you to discover your friend’s cards (Credit, Debit, Loyalty and Coupons) to avail cash back, discount or offers.

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