There are different digital methods of payment while getting your mobile recharge done online. While the conventional methods of electronic payment involves the credit card and the ATM cum debit card, the bank transfer, e-wallet and Payments Banks are relatively newer methods of making online payments – at least in terms of their acceptance by the common man as a mode of payment .
The digital wallet or the e-wallet, which is simply an extension of the physical wallet and is used for making payments, had its birth way back in 1983 when David Chaum introduced cryptocurrencies. The modern version of the e-wallet started in 2008 and was only in 2011 that the applicability of this technology was practically demonstrated to the world. However, experts are suggesting that by 2021, the mobile payment method is not only going to explode but will lead to an implosion as more and more payment providers join the list of e-wallet service providers.
In India, there are few reputed and reliable online retailers or payment aggregators that provide the service of electronic wallet. These wallets that are specific to each retailer can be used only while using the App or site of the particular retailer for making payments against online mobile recharge. Big time retailers like Paytm App, MobiKwik App and PhonePe App provide for their respective digital wallets that can be used not only for paying against mobile recharge, they can also be used for online bill payments, shopping online, bookings tickets, ordering food online etc. The e-wallet converts your mobile phone into a mobile payment device. Hence it can be used in the offline mode too and without internet connectivity. The customer simply needs to scan the QR code of the retailer to whom he has to make payments, by opening the e-wallet mobile App and approve the payment.
In order to start using an online aggregator’s digital wallet, the user needs to be registered with the particular retailer. These days even banks and cellular service providers have started their own digital wallets. The bottom line is that you need to be a registered user of the particular service provider in order to use his e-wallet. The next step is to load the electronic wallet with money from your bank account or credit card to be able to practically use the wallet for making payments for a mobile recharge. Money to another bank account or another mobile number can also be transferred using this payment instrument. At all times, the e-wallet will ask for the mobile payment PIN before processing a financial transaction. Service providers provide for dual layer security for using this wallet. The first is the password that is required to enter the App and the second is the PIN to process the transaction. Some service providers though provide for another level of security wherein a One Time Password is generated and is sent to the registered number of the user. This is done usually in cases where the payment value exceeds a certain amount.