5 Best Digital Wallet – benefits, Types, Uses


Now days, use of smartphones isn’t  restricted to calling & messaging only, in fact it is extending to replace wallets.With the continuous advancements in technology, now bill payments and money transfer can also be done easily through smartphones. Many banks and companies are providing such facilities. Let’s take a look

In today’s digital world, Mobile Wallets are gaining popularity at a fast rate. Due to increasing popularity of these wallets SBI, ICICI and HDFC have launched their Digital Wallets viz. ‘SBI Buddy’, ‘Pockets’ & ‘PAY ZAPP’ respectively.

Besides these, ‘Paytm’, ‘PayU’, ‘Mobikwik’, ‘mPesa’, ‘Airtel Money’, ‘mRUPEE’ are the other available digital wallets.

Through these Digital Wallets, it becomes possible to carry out online transactions, money transfer, bill payment, phone & DTH recharge. Moreover, one can also book the tickets of movies, hotels and of even flights through these Digital Wallets.

Before using the mobile wallets you need to deposit the money to the respective service provider and further you can use the deposited money while shopping, making bill payments, ticket booking, etc.

SBI Buddy

Recently, State Bank of India (SBI) have launched its mobile E-Wallet with the name of ‘SBI Buddy’. Its special feature is that it can be used by SBI customers as well as by those who are not the SBI customers. By using this wallet, you can easily do online shopping, money transfer, hotel booking etc. This wallet can be operated in 13 languages. In this app, options like ‘ask money’, ‘send money’, ‘add money’, ‘recharge & pay bills’, ‘market place’ and ‘transfer to account’. This app can be downloaded from Google play store.

ICICI Pockets

This mobile wallet app of ICICI Bank provides pocket’s users some other facilities apart from money transfer. Through this app user can transfer money to any email id, mobile number, Facebook friend and bank account. With the help of this app user can recharge their phone and can also book movie tickets. Besides these, options like ‘Bill payment’ and money sharing with friends are also available. Users have the liberty to choose from zero balance account to savings account in their wallet. This ICICI Mobile Wallet app viz. Pockets can be downloaded from Google play store.


HDFC Bank’s wallet, PAYZAPP, can be used to do online payments, money transfer, etc. Making payments and shopping have become very easy with PAYZAPP. After downloading this app, phone recharge, money transfer, bill payment, movie ticket bookings all can be done with just one click. Option of ‘Smart By Payment’ is also given in this wallet. Using this wallet, customers can easily perform money transfer, bill payments & mobile and DTH recharges. PAYZAPP users can transfer money to anyone by using mobile number and email id of that person. This app can also be downloaded from Google play store.


This mobile wallet is very popular in the form of semi-closed wallet. It is also India’s largest Mobile Commerce platform. This digital Wallet is governed by One97 Company. Recently, it have received license for payment bank from RESERVE BANK OF INDIA. With the help of this app one can transfer money, request friends for money and can also do shopping & bill payment. This application is available for android, iOS, windows and blackberry.

BSNL Wallet

BSNL with an IT company Pero have jointly started the mobile wallet service and have named it ‘SPEED PAY’. Through this wallet, money can be transferred to anybody’s account. In addition to this, user can debit cash of about Rs. 1,00,000 from some banks. It works similarly as debit cards of banks. User need to recharge its BSNL mobile wallet by paying money at the BSNL retail outlets. After this, the user can debit the money through SPEED PAY card either from BSNL outlets or from banks as suggested by this company. Besides this, user can also transfer money to anyone’s account through smartphone. For shopping, SPEED PAY card can be used as debit card.

Apart from these wallets, ‘Oxygen Wallet’, ‘MobiKwik’, ‘PayU Money’, ‘Vodafone mPesa’ digital wallets are very popular.

Technology Used for Transaction

  1. Mobile Internet (2G/3G/WiFi)
  2. Short Messaging Service (SMS)
  3. Near Field Communication (NFC)
  4. Quick Response Codes (QR Codes)
  5. Bluetooth
  6. Biometric

Types of E-Wallet

Usually, e-wallets are of three types viz. Closed, Semi-closed & Open.

Closed Wallet : Generally such wallets are issued by the companies in favour of their consumers. It can be used for In-house goods & services only. You cannot use it for withdrawal of cash. Online shopping companies like Flipkart, Make My Trip, jabong offer such wallets.

Semi-closed wallet : Such wallets are offered by Mobikwik, PayU, Paytm, etc. According to RBI, such wallets can be used for goods & services as well as for financial services.

Open Wallet

This wallet is used to buy goods & services. It is also used doing payments, recharging mobile and giving payments to selected merchants. Such wallets are offered by banks only.

Where we can use e-wallets

  1. E-wallets can be used for bill payments, like postpaid mobile, landline, gas & electricity bill, etc.
  2. E-wallets can also be used for recharging prepaid mobiles and DTH connection.
  3. It can also be used for booking movie and railway tickets.
  4. Through this wallet online shopping and offline shopping at selected merchant can also be done.
  5. Through this wallet, money can be transferred to another wallet or to bank account too.


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