If cash is an issue, learn how to use an e-wallet

Modi’s surgical strike on black money has suddenly turned cash into a rare commodity in India. Long queues outside banks and ATMs, lack of cash at ATM vestibules and a load of misinformation have finally managed to create a scenario which would push Indians to finally and grudgingly accept a cashless environment.

While obviously, the importance of cash in undeniable at present, we can take steps that will make sure that we don’t get stuck in tight spots. Over the last few years, online transactions have become much more popular than they were ever before. People prefer paying all their bills, booking tickets and buying stuff online. With better internet connectivity, and banks trying their hardest to push for mobile banking, a cashless environment has become more commonplace than ever before (at least in tier 1 and tier 2 cities).

But banks aren’t the only ones trying to capitalise on this nascent cashless stage of the Indian economy. That’s where mobile wallets come into play.

Mobile wallets are essentially apps that work just like your real wallet; but digitally. They keep money and help you buy services from sellers. You can save your bank card details, credit or debit, or you can put money in the wallet to be used for cashless transactions.

Anyone who has used PayTM, Freecharge or MoboWiki, CitrusPay or any of the 40 mobile wallet services available in India will be able to tell you just how easy to use they are. But for the uninitiated, we have a simple primer.

First, select which service you would like to use. Choose them on the basis of what they offer. In general, all of them are pretty much the same. The kind of free offers and schemes they offer tend to vary. Some of the online services that you subscribe to allow payment only through particular mobile wallets (like Uber and PayTM). Keep in mind the kind of online services you use to select your wallet. The choice is essentially the hardest part. The rest of it is easier than cutting into butter with a hot knife.

Once you select your preferred wallet service, download the app for your phone and log into it using either your Google account or your Facebook account or by creating a separate account for the wallet itself.

Once you are done with that, it is always handy to save your credit card/debit card/net-banking details in it for quick online payments. Additionally, you have the option of transferring cash to your mobile wallet either from your debit card or through your net banking services.

This latter is the easier way to complete your online transactions. You can of course transfer your money back from the wallet to your bank account (though that will cause the wallet to deduct a small percentage for the service). That’s it. From mobile bills to DTH bills to electricity bills, to shopping to paying for cabs to getting special discounts; your mobile wallet is likely to become your best friend as you use it.

Mobile wallets are already becoming the next big thing in India. According to a Scroll.in report, over the past four years, mobile wallet transactions have jumped from Rs 10 billion of transactions in 2012-’13 to more than Rs 490 billion in the year 2015-’16, and are estimated to rise to Rs 1,210 crore by 2019.

Also read - Government needs to think more than scrapping Rs 500/1,000 notes to curb black money