Mobile Wallets


The one thing that attracts interest among researchers is the separation between management and ownership. As the board of directors is the key element of corporate governance, it is clear that its composition must be responsive to the basic functions. Some of them would be supervising, monitoring, avoiding opportunistic behaviour on the part of executives, and providing advice to decision-makers to improve the management of the business. Let us look deeper into this.

What is a mobile wallet?

[1]Mobile wallet (also referred to as mobile payment, mobile money transfer, and mobile money) is a type of payment service which operates under the financial regulations. As the name suggests, the transactions are carried out using a smartphone or a tablet. The mobile wallet stores information regarding your credit/debit cards. Instead of having the need to carry physical cards with you, you can make a payment in just one click. This is a very convenient and safe way to transfer money to a person/shops/restaurants. Mobile wallet applications can be downloaded via the app store or play store. Some of the popular Mobile Wallets used today are Paytm, Freecharge, MobiKwik, Airtel Money, Jio money and Oxygen wallet.

Understanding a mobile wallet

All the information stored in the mobile wallets is encrypted which means that it is very difficult for the hackers to get this information which will prevent fraudulent activities. Physical cards can be stolen and used but with mobile wallets, they cannot be accessed without a password. Once the app is installed and the user enters his payment credentials, they can pay using the recipient’s phone number, QR code, unique ID, or by using NFC.

Near Field Communication (NFC) is a communication protocol technology that uses radio waves to communicate between 2 electronic devices over a distance of 4cms or less [2]. The NFC technology saves the personal identification of the user to communicate payment to the recipients POS (point of service). The money transfer is triggered when the payee’s device waves or holds over the recipient NFC receiver/reader. Not all smartphones and tablets are equipped with NFC technology. The user can also pay by using the receivers phone number or QR codes in the shops/restaurants.

Process of getting a mobile wallet

First, you have to download the mobile wallet which you want. After installing the application, you must create an account or link it to your existing google account. You have the option to either be a consumer or a merchant (if you own any business/shop/restaurant). After creating your account and entering your mobile number, you must complete your KYC. A KYC (Know your customer) is a mandatory process of identifying and verifying the user when opening the account. Some wallets provide basic amenities without KYC but to avail full access, KYC must be done. Once your KYC is done, you are required to link your debit/credit card to the wallet so that you can easily debit or credit from the wallet. You bank account must be linked to the wallet too.

Once this process is completed, you will then be required to provide a password or a PIN. The user will be prompted to enter his password/pin before making any transaction.


Mobile wallets provide a secure access and ease of payment. They are very secure and cannot be hacked very easily. In case of theft, it will be impossible for the thief to use your wallet unless of course he knows your password. They are also very convenient to use as you only have to carry your mobile phone with you. A good internet connection is required otherwise the transaction would fail. Only a selected number of merchants have mobile wallet facilities so using mobile wallets everywhere is not an option. It has its ups and downs, but this technology has made transactions very feasible and convenient.


[1]W. Kenton, “Mobile Wallet,” Investopedia, [Online]. Available: https://www.investopedia.com/terms/m/mobile-wallet.asp. [Accessed 2021 September 2021].
[2]“NFC Technology,” NFC Forum, [Online]. Available: https://nfc-forum.org/what-is-nfc/about-the-technology/#:~:text=Near%20Field%20Communication%20(NFC)%20is,through%20a%20simple%20touch%20gesture.. [Accessed 20 September 2021].
[3]“Mobile Wallet,” Corporate Finance Institute, [Online]. Available: https://corporatefinanceinstitute.com/resources/knowledge/ecommerce-saas/mobile-wallet/. [Accessed 20 September 2021].