The still evolving ecommerce and mcommerce technology has given birth to mobile wallets. If you are hearing the word mobile wallet for the first time then these wallets are loaded with cash electronically from an ATM or a mobile retailer. These mobile wallets can be used by customers to shop online or for recharging services such as mobile, data cards and even DTH services. Mobile wallets ensure smooth and hassle free transfer or payment implying uninterrupted service.

There are special recharge and online payment transfer portals that offer mobile wallet services. Customers are not required to own or use a debit or a credit card for they can be directly linked to the bank account or credit card. They need to initiate a transfer to the mobile wallet to perform transactions. The transactions could include money transfers, payment of utility bills such as electricity bills, mobile service bills, data card renewals, recharging pre paid mobile connections and many more. In fact, customers can enjoy additional top-ups and get cash back into their wallets. Besides customers can also use their coupons such as Mobikwik Coupons which are available online and get heavy discounts.

Shopping on e-commerce sits is also possible using these mobile wallets. In fact, payment through mobile wallet is considered very secure and safe. Most e-commerce merchants consider it safe to conduct transactions to mobile wallets rather than opting for Cash against delivery payment channel.

Popular Ecommerce stores such as Myntra, Zovi, Snapdeal, Fabfurnish willing accept payment through mobile wallets. In fact to popularize this concept, these portals display a special range of offers and deals through which shoppers can enjoy cashback offers, additional discounts and special benefits too.

With regards to security, uers need not enter the highly confidential card details when conducting transactions through mobile wallet for a highly secured payment gateway is used to transfer these funds. This does minimize the risk of confidential details being leaked to third party users and the occurrence of frauds.

As an additional service measure, mobile service providers undertake to ensure refunds into the mobile wallet if at all the transaction has failed or merchant does keep up to the commitment made. This builds up the trust factor of the customer and ensures customer retention too.

As per industry reports as stated by the Internet and Mobile Association of India, Payments Council of India and IMRB, the mobile wallet segment is all set to witness tremendous growth and likely to be worth $20 billion and more business in the coming times. Even globally, there are many ecommerce giants who have signed pacts with payment gateways for bettering their performance for instance, PayPal and eBay, Taobao and Alibaba.

The age of mobile wallets has arrived is very much likely to stay. The factors contributing to its rise include ecommerce revolution, safe and security in conducting payments and transfers and the latest tie up with ecommerce merchants for ensuring better service to the both the parties viz. merchants as well as customers.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com.

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