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  • Category: Miscellaneous

    Ordinary wallet vs e-wallets - features, pros and cons


    Wondering if e-wallets are really beneficial? Know the advantages and downsides of using e-wallets through the feedback of actual users who have given reviews of various e-wallet brands

    Now days many banks like HDFC, ICICI, SBI are providing e -wallets such as Payzapp, pocket money, SBI buddy etc. Also there are many non-banking financial companies like paytm wallet, mobikwik wallet, oxiwallet etc which are allowing you to keep money or add money through your debit, credit card or through internet banking.

    First of all people might think that what is the benefit of using those wallet instead of giving cash or swipe directly debit or credit card at POS or shops. By paying through those wallets you get secured m-pin, also you get good reward points which can converted in future either for gifts or for cash, you get good discount than paying through cash etc.

    How many of you are using any of the above mentioned wallets and how comfortable you are with these e-wallets?
  • #578168
    Presently, I don't know fully about the e-wallets like products and therefore eager to know more about the subject matter. It appears from the information provided by the author that for using e-wallet product, first of all, one will have to transfer the money from their bank accounts to the e-wallet using credit/debit card or internet banking. In case it is so then transactions charges will have to be paid twice as the credit card company will charge while transferring the amount to the e-wallet and then again some charges are likely to be associated with using e-wallet facility.

    As far the mentioned benefits like reward points and offered discounts etc. the same are simple marketing tactics and perhaps the buyers get lesser benefits compared to the companies who sell such products.

    Let us encourage each other in sharing knowledge.

  • #578171
    As an old-fashioned man, I still have faith on traditional wallet kept in the pocket of my trousers. Although I use ATM cards and do online transaction, I am not in favour of using e-wallets and credit cards due to the charges and high interest rate associated with these products.
    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

  • #578178
    For the uninitiated above, there are no extra charges for using e-wallets. Amount X transacted from any Bank is stored as Amount X only in the wallets. Also, no amount is not deducted when you finally do the transaction from e-wallet to a shopkeeper/service/peer.

    These wallets are helpful in reducing cash usage. They can be used for quick mobile recharges, payment to cab companies, shopkeepers who accept these payments like Mother Dairy and more. These help in avoiding change problem too. Less worry about losing money too due to theft or something else. Also, since you are not revealing your bank details anywhere, this is more secure too.

    I do use these services quite a lot, around 1-2k is monthly spent by me using these wallets only. Sometimes when I have to receive some small money from my friends I ask them to give it through these online wallets rather than transacting online or giving cash. Primary I use Paytm and Freecharge. However, I have accounts with other vendors too like Mobikwik, Ola Money, mpesa and Oxigen since you never know when you get an offer with anyone of these.

    One thing though I would like to mention is that, once UPI has permeated the market properly, the need for those e-wallets might get reduced.

  • #578189
    Ankit (#578178) - In case there are no charges whatsoever, then from which source, the employees working in such companies get their salaries?
    Let us encourage each other in sharing knowledge.

  • #578194
    I think e wallets are applicable to those people who are the regular purchasers from the market and their cash or cheque transactions are more. For ordinary persons there is nothing like virtual shopping and paying for the bills in cash. What I feel that nothing comes to us for free. The so called E wallets are having service charges for every use. Even ATM"s also we are punished with service charge if we use other ATM bank for quick access and cash. So what I mean to say that e wallets transactions may be without cash but the over all burden of charging service taxes and charges would be more.
    K Mohan
    I consider myself as the learner everyday

  • #578208
    I was using the Paytm wallet for sometime as the cash back or cancellation was retained there till I used it later. Paytm and Freecharge were giving some good discounts or cash backs in the initial stages of their business promotion when recharging of mobile phones entitled equal or good percentage of cash back. There was cash back incentive to add money to the e-wallet(Paytm wallet or Freecharge wallet) and even on using the same to pay for purchases.
    At one time my e-wallet balance was about 5000 due to cancellation of an order. But as the incentives tapered off and came almost nil, I also stopped using e wallet.

    ==================================
    Let us keep faith on ourselves and work sincerely, not leave everything to fate.

  • #578237
    Kailash,
    Just like bank charges the retailers for transactions and not the customers, e-wallet companies charge the retailers and not the customers.

    Also, if you start storing money in these wallets chances are you will use other services of these providers too. Mobile/DTH recharge, bill payments, online shopping, paying for cab services and many such services are provided by the same companies running these wallets. So it provides a customer stickiness for these companies and hence even if they would incur some loss on these transactions, in the bigger picture the loss is mitigated by the profit from other services.

  • #578248
    Kailash,

    In addition to what Ankit has said in his response #578237, there is another aspect regarding the expenses - The money which lies in our e-wallets etc does not give us any interest. So, the company has loads of interest-free unused money which it can invest anywhere any earn interest on it.

    E.g. I import Rs 2000 into my Paytm wallet from my saving a/c and spend Rs 250 on recharge of my phone. The balance of Rs 1750 lies in my Paytm wallet till I use that amount. So, the Paytm has lakhs of such accounts with varying amount of money. So, Paytm has crores of Rs for which it does not have to pay any interest and which it can invest to earn lakhs of Rs as interest which can be paid to the employees as salary.

  • #578288
    I far prefer having my own purse in hand and paying cash everywhere rather than using any online money storage drawers. Not at all enamoured with them! I did, though, read up about various e-wallets and wrote a few articles in earlier years, which may be of interest to readers:
    1. How to create & use a mobile wallet online

    2. R-wallet for ticket booking

    3. SBI Buddy mobile wallet

    4. Paytm mobile wallet

    Regards,
    Vandana
    Managing Editor, IndiaStudyChannel.com

  • #578291
    Gypsy/Ankit - What happens when during the crucial period of shopping/payment, the connectivity goes off?
    Let us encourage each other in sharing knowledge.

  • #578292
    Kailash,

    I haven't faced any issue till date because of loss of connectivity. Generally the payment does not go through and no money is deducted from our account.

    Vandana, know you are a chip off the old block who still is an admirer of landline phones , but still would like to say that it is high time you started using such things

  • #578296
    @Kailash,
    Just like card/internet banking transactions online or in fact any electronic transaction like ATM, in case there is any type of issue and the payment is not completed but the amount the deducted, the money is refunded to your account. Then you can retry or always bank upon hard cash. Never said to go to market empty handed! I do 5-10 such transactions monthly at least and haven't faced any issue yet. Most of the times when I did face any issue, either the payment did not go through like what Gypsy said above and in a few rare scenarios I got the refund in 5-10 minutes.

  • #578366
    First of all many people don't use the e-wallet facility just because they think that if they use this kind of facility their money will be hacked or something like that and they become frightened about doing this. It is true that now a day we are getting many facility by using e-wallet like redeem points or some cash credit if we buy something etcetera. I personally never use any of those e-wallet facility because I am too very scared of on-line transaction, so I prefer only hand cash transaction.
    live happily in every situation of life


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