In this age of smartphones and modern technology, we have seen a drastic and swift change in the digital payment methodology. With swift changes available in digital payment methods, new companies are emerging in the market that provide various digital wallet app solutions. Along with this evolution in digitalization, we came across various new terminologies – including a mobile wallet and mobile banking.
Both mobile wallet applications and mobile banking applications are not only used as a replacement for cash but also are used for online transactions and payments such as paying for your online or offline purchases, bill payments, transferring money, and receiving money.
These two terms might seem to be interchangeable to some people. But there is a fine line of difference between mobile wallet and mobile banking.
Mobile Wallet App Over Mobile Banking App
Mobile Wallet is a wallet that is available in your smartphone instead of your pocket. Mobile Wallet App offers you a pocket money solution that allows you to use your smartphone to send or receive the money in your virtual wallet. When you think about the term mobile wallet, we automatically refer to GooglePay, MobiWik, PhonePe, Paypal, AmazonPay, Paytm and many more e-wallet applications.
Mobile banking is an advance payment platform digibank application that mirrors the internet banking services and is an extension of traditional banking services. This is a service provided by the bank that allows you to conduct numerous financial transactions using your smartphone or tablet.
ICICI iMobile app, Bank of Baroda m-connect app, HDFC PayZapp, Kotak 811, Axis mobile app and many others are examples of mobile banking applications.
Mobile Wallet Application is independent than Mobile Banking Application
Mobile Wallet and Banking both have their place in the fintech world, but in comparison with mobile banking. The mobile wallet app is an independent option that gives the flexibility to pay when you want, where you want, using any of your bank accounts.
Its provides you with bank account details along with cards for performing different financial transactions. Your bank provides you with a bank card and account number to do online and offline transactions.
Branchless banking is facilitating you to perform numerous transactions like transferring money, applying for credit cards, applying for loans, paying bills, depositing salary, checking the balance of your bank account and many more financial transactions.
Mobile Wallet is considered as an extended family as mobile banking enables you to securely store your personal information like card details or bank details. Just by using a single mobile wallet, you can save multiple card details or banking details of different banks and can use it for your purchases.
Moreover, different mobile wallet app allow you to earn reward points, promo codes, scratch cards, discounts. And many other extra benefits by making payments using the application.
Benefits of Mobile Wallet
Mobile Wallets provides pocket money solutions that are flexible and easily accessible where transactions are made securely just by one-tap. As you can save details of your different bank accounts in one mobile wallet. While making payment you can choose the bank through which you wish to make the payments.
Apart from making payments, mobile wallets also cater extra benefits like getting discounts, vouchers, gift cards, and other offers depending on the application. While on the other side, mobile bank won’t give you options to select among the banks. You have to make payment from a particular bank.
With Mobile Wallet, you don’t have carry your wallet along with you. You can just leave your home only with your mobile phone. Anytime and anywhere, you can send and receive money easily and swiftly. Mobile Wallets allows you to make online or offline payments by choosing the bank account of your choice.
While on other side, a mobile banking application will allow you to access your bank account 24/7. You have to choose a particular bank application where your account exists for making payments for your purchases. Moreover, you can also manage your bank money by making investments in that particular bank.
Digital Wallet App Solution replaces Physical Wallets
Mobile Wallets are basically designed to replace the physical wallets. When you are heading out for any party or outing. You don’t have worry about how to keep your cash safe while traveling? Using mobile wallet app, you can store your money in the mobile wallet. And can make payments with ease using your smartphone.
By making payments of your purchases using mobile wallets gives you various advantages like earning reward points, discounts, coupons, offers etc.
On other side, agency banking solutions have designed the mobile banking app that provides a full range of banking products and services such as applying for loan, investing in stock market or mutual funds, transferring and receiving money to your bank account, checking your bank account balance, etc. These banking services are not design to replace your physical wallets.
Mobile Wallet Transactions
According to Global Data, there is an expectation to exceed $1.36 trillion by 2024. In 2016, mobile wallet transactions in India were value $5.4 billion. Consumers are switching from cash payments to mobile wallet payments methods.
As there is an increment in mobile wallet consumers. A prediction is made that the value of mobile wallet transactions might reach $1.41 trillion by 2024.
Mobile Wallet user in India
Paytm, PhonePe and Google Pay users are predict to grow to hundreds of million in India by 2025 according to Statista.
Digital Payment Journey in India
In 2000, the digital payment journey started in India. In 2005, digital payment growth in India was 3% and by 2025. The growth of digital payment would increase by 58%.
In this fintech world, mobile wallet apps like Google Pay, Paytm, Amazon Pay etc. It will be leading the market and will totally replace physical wallets. Mobile banking will be a useful application where users can easily complete their banking transactions without visiting the bank.
Both Mobile Wallet App and Mobile Banking App have their own functionalities and benefits. According to the consumer’s need, one can select any of the applications to complete their financial transactions.